India semicon spend to reach $9.2B

Clocking 20 percent growth, subcontinent expected to be fastest growing market globally in terms of semiconductor revenue in 2012, finds Gartner report.
Written by Liau Yun Qing, Contributor

India's semiconductor market is expected to grow 20 percent year-on-year and reach revenues totaling US$9.2 billion in 2012, becoming the fastest growing market for semiconductor consumption, according to Gartner.

Globally, this market will see a 4 percent yearly growth to reach US$316 billion in revenue this year, the research firm said in its report released Monday. Among the different product categories, mobile phones, media tablets, PCs, servers, LCD TVs, solid state drives and set-top boxes, will account for about 50 percent of the total global semiconductor market this year, it added.

In India, mobile phones, PCs and LCD TVs will account for nearly three-quarters of India's semiconductor consumption in 2012, said the report. Mobile phone production in the country is expected to grow 21 percent, bringing in semiconductor revenues of US$4.8 billion, it said.

The country's PC production is expected to increase 7 percent and contribute US$1.8 billion in semiconductor revenue. LCD TV unit production will grow 47 percent, accounting for US$312 million in semiconductor revenue in 2012.

Ganesh Ramamoorthy, research director at Gartner, said in the report: "Semiconductor consumption in India is being driven from the changing demographics, increasing consumer affluence, economic growth and favorable government policy."

Global electronic equipment manufacturing companies are also expanding their production facilities in India, Ramamoorthy said. He highlighted Nokia's decision to move its production facilities to Asia-Pacific, noting that this move would benefit India. The phonemaker already has a large production facility catering to the growing domestic and neighboring markets in the region, he added.

Globally, media tablet production is expected to increase 78 percent in 2012 to account for US$9.5 billion of semiconductor revenue, while PC production will grow 4.7 percent and drive US$57.8 billion in semiconductor spending, said Gartner. Mobile phone production is expected to grow 6.7 percent, amounting to US$57.2 billion in semiconductor revenue in 2012, it added.

A previous Gartner report noted Apple as the top semiconductor buyer in 2011, contributing 5.7 percent of the worldwide chip market. The company was followed by Samsung and Hewlett-Packard which tied at second and third place with 5.5 percent market share each.

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