Trade Analytics

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September, 2012


Indian semiconductor industry has been witnessing tremendous growth over the past few years with rising demand for mobile handsets and PCs. On the back of prolific expansion of products and services, such as set-top boxes, wireless handsets, 3G rollout, WiMAX deployment, notebooks, and smart cards, it is expected that the market will be expanded at an accelerated rate in future. Considering all these factors, the Indian semiconductor market is expected to grow at a compound annual growth rate (CAGR) of around 22 per cent during 2012-2015.

India Semiconductor Association (ISA) is the premier representative of the Indian Electronic System Design and Manufacturing (ESDM) industry since 2005. The trade body is imbibed with an objective to create global awareness for the Indian ESDM industry and support its growth by initiating focussed measures that would develop an appropriate ecosystem.

Market Size

Electronics is essential to technology infrastructure, and semiconductors are the main component of electronics products. Electronics sales in India, which totaled US$ 40.7 billion in 2009, will touch US$ 400 billion by 2020. At present, local manufacturing accounts for about 40 per cent of consumption and it could increase to 80 per cent by 2020. Many global original equipment manufacturers (OEMs) and electronic manufacturing services (EMS) firms, including Samsung, LG, Nokia, Toyota, Hyundai, Flextronics, Jabil, Foxconn, Sanmina, Elcoteq and Celestica, have set up manufacturing facilities in India in recent years, according to ISA.

The Indian semiconductor design industry, consisting of Very Large Scale Integration (VLSI) design, embedded software development and hardware/ board design is estimated at US$ 7.5 billion in 2010 and is expected to grow YoY at 17.3 per cent and reach US$ 10.2 billion by 2012.

The top 10 global fabless companies and the top 25 semiconductor companies have operations in India.


India has a well-developed semiconductor design industry, with 120 design units.

In India, after Bangalore, Noida has become a hub for semiconductor design industry with many major players setting up their offices and research and development (R&D) centres in the city. Global MNCs such as Freescale, Mentor Graphics and Interra Systems are some of the major semiconductor companies in Noida.

Some of the major investments in Indian semiconductor industry include:

  • Chip-designer Xilinx Inc has inaugurated its expanded facility in Hyderabad. "The facility, Xilinx's largest R&D centre outside the US, would continue to support all programmable technologies and devices," as per Moshe Gavrielov, President and Chief Executive Officer, Xilinx Inc
  • ON Semiconductor Corporation has announced the availability of a full front-to-back process design kit for its High-Q Integrated Passive Device (IPD) processes. The product was developed with Agilent Technologies’ Advanced Design System 2011 EDA software
  • In a bid to make India a global manufacturing hub, 11 companies (foreign as well as domestic) have demonstrated their keen interest to set up fabrication plants (fabs) in the country. The Department of Information Technology (DIT) has received proposals regarding the same
  • Indian start-up Lava announced its partnership with Intel at Mobile World Congress, with the launch of the first Intel-powered smartphone in India, the Xolo X900. Lava, which has so far focused on budget phones, will manufacture smartphones under the Xolobrandname
  • Semiconductor company Intersil Corporation has announced that it has started a new design centre in Bengaluru. The centre will help develop new integrated circuits and reference designs, besides providing system-level application support for customers