Bangalore: The global slowdown would pull down the growth rate of the Indian semiconductor market by half in two years, a new update on the industry released here today projected.
According to the Indian Semiconductor Association (ISA)-Frost & Sullivan report update 2008-2010, the total revenues of the Indian semiconductor market (total market-TM) are poised to grow from $5.9 billion in 2008 to $7.59 billion in 2010 at a compounded annual growth rate (CAGR) of 13.4%.
The decline in CAGR, from 26.7% in the earlier report of 2007, to 13.4% in the current report, is on account of revised investment and manufacturing scenario seen in the second half of 2008.
There has also been a decline in the Average Selling Price (ASP) for various semiconductor components ranging from 3%to 10% depending on the final product and the semiconductor content. The overall global slowdown had also not been anticipated during the previous report of 2007.
“The current slowdown will impact manufacturing investment prospects. A low manufacturing index for electronic products leads to higher imports and thus lowers the local potential for semiconductors, their key component”, ISA President Poornima Shenoy told a press conference.
According to the report, the total available market (TAM) for semiconductors in India is anticipated to climb from $2.53 billion in 2008 to $3.24 billion in 2010 with a CAGR of 13.1%.