Gartner, Inc. has revealed that consumption of semiconductors in India has reached $8 billion in this year, which is a 7.4 per cent increase from the past year and the consumption is expected to reach $9.6 billion by end of the year.
This in particular was in contrast with the global trend as semi-conductors worldwide witnessed a revenue decline of 2.6 per cent and $299.9 billion in 2012, said the technology researcher.
According Ganesh Ramamoorthy, research director at Gartner, “The worldwide semiconductor industry suffered serious disruption in 2012. Excess inventory in the supply chain was the key factor.” “High inventory levels affected semiconductor consumption in India as well during 2012. However, a relatively better domestic economic climate and growth in consumer spending helped semi-conductor consumption growth in India,” he added.
Amongst the key devices, mobile phones, PCs and LCD TVs stood at the top which accounted over 70 per cent of overall semi-conductor consumption in India. LCD TV took the highest leap of 45 per cent in terms of semiconductor consumption during 2012, while mobile phones’ grew by 5.7 per cent and PCs declined by 0.3 per cent.
“With the global semiconductor industry poised for a rebound starting in the second quarter of 2013, we expect semiconductor consumption in India to also grow. Semiconductor consumption in India will reach $9.6 billion in 2013, an increase of 20% over 2012,” said Ramamoorthy.
According to Ramamoorthy, the improving consumer sentiment on the back of a likely stabilisation in the global, as well as domestic economic conditions, coupled with a return to more normal inventory levels in 2Q13, will be the key factors that will drive semiconductor consumption growth in India during 2013.
