Indian Semiconductor Market: Present outlook and way forward

The top and fastest flourishing businesses in the world and in India. As per government of India Task Force report (DeitY), gross size of the global electronics industry is evaluated at roughly US$ 1.9 trillion and is anticipated to achieve US$ 2.4 trillion by 2020. The numbers are remarkable and behave as a big motivation for investments in the industry. The National Electronics Policy 2012 states the requirement in the ESDM (Electronics System Design & Manufacturing) industry in India is expected to reach US$ 400 billion by 2020 as global electronics and hardware producers want to increase their production base in India to accommodate domestic market in addition to the Middle East, Africa and SAARC countries. This creates an exceptional opportunity for businesses in the ESDM industry to look at India as their second destination to appeal to domestic Indian need, in addition, to act as an exports hub.

India has a low domestic Manufacturing base and a minimal value addition due to which the demand-supply gap is likely to achieve US$ 300 billion by 2020. When compared with international leaders India is lagging considerably in the field of semiconductors and electronics. Approximately 90% of Indian Semiconductor Market is dominated by overseas players. Whereas, according to the Semiconductor Industry Association, China accounted for 44 per cent of the international semiconductor industry's total earnings of $339 billion, in 2016. Chinese businesses are acquiring US semiconductor companies, that has set off alarm bells in the US. Indian authorities and companies are taking notice of the development in global Semiconductor Market and have implemented policies to promote manufacturing of semiconductors in India. To be able to meet this dreadful condition of Indian Semiconductor Market, and to intensify local manufacturing and value-addition in electronics systems design and manufacturing (ESDM), the Department of Electronics and Information Technology (DeitY), Ministry of Communications and Information Technology (MoC & IT), alongside the government of India have rolled-out the National Policy on Electronics in 2012. The NPE 2012 intends to draw trades of US$ 100 billion and to make employment of 28 million by 2020.

According to Union Minister of Information Technology, Foreign Direct Investment (FDI) in digital manufacturing has reached an all-time high of US$ 18.34 Bn in 2016 mostly because of government reforms and it is Make in India initiative. The Government of India has allowed 100 per cent Foreign Direct Investment (FDI) under the automatic route in Electronics Systems Design & Manufacturing sector. The Ministry of Electronics and Information Technology intends to revise its policy framework, which would involve the government taking a more active part in developing the business by providing initial capital, with the intention to attract more private players and also make India a global semiconductor hub. With the authorities of India's flagship program'Earn India' to drive local manufacturing and with initiatives such as smart cities and 'Digital India', the sector expects the nation toreduce its dependence on electronic equipment imports by 50 per cent by fiscal years 2016-17.

India is the most rewarding Market throughout the world with 7.7% GDP growth rate in the 1st quarter of 2018. The remarkable demographic dividend, constant rise in the proportion of middle class, changing expenditure patterns are the distinguishing factors of the current Indian market that are consequently attracting the worldwide investment. The local demand Indian Semiconductor Market is likely to be driven by the increase in earnings amounts directing to the greater take-off of electronic products. The government policies and incentives, as well as the digital manufacturing cluster policy, will assist the business to grow at the expected rate. Measures have been taken to boost domestic production of digital items and cut down dependence on imports.

The key drivers into the Indian semiconductor Growth sectors, such as healthcare equipment, automotive, consumer goods and industrial products -- all of which progressively use electronics -- are also expected to encourage semiconductor consumption in India. With the positioning of a wafer fab in India, the country could achieve a level of independence in electronic equipment and partially cut back the very large supply chain risks that the nation is subjected to, with no alternate source for procurement.

Even as Indian Semiconductor Market develops, home-grown start-ups from the semiconductor sector are fighting for funds. The investments required are generally high, the revival more, and it needs considerable domain knowledge and, what's more, favourable government policies. If one has been to earn a check-list, there are some tick marks -- domain knowledge and, to some extent, Make in India are assisting the sector. However, there are significant cross marks also. Money is the largest stumbling block in Indian Semiconductor Market. It seems ironic, considering how the Indian Semiconductor components Market is expected to hit $32.35
billion by 2025, based on IESA.

The semiconductor companies are apt to associate Together with the entrepreneurs and start-ups and help them to accomplish the overall objective of developing the ESDM market. The international giants are acting positively forming consortiums and creating various partnership models with Indian players in Indian Semiconductor Market. NXP Semiconductors, that in partnership with Sony Corp. invented NFC technology in the first place has accompanied YELDI Softcom a newly established Chennai based NFC technology business to develop NFC handsets, cards, backend infrastructure and mobile programs. PVR, one of India's top and favourite retail
Entertainment Company is currently streamlining its retail function with NEC. These solutions enable PVR to enhance customer experience through better payment mechanisms and enhance its retail purposes at a radically low total cost of ownership through its exceptional serviceability and reliability.

Indian Semiconductor Market is heavily dependent For semiconductor chip imports on Asian nations like China, Taiwan, South Korea and Japan, though electronic manufacturing service companies in India have attained substantial adulthood for final assembly, testing, packaging and distribution solutions. Chinese and Taiwanese businesses when compared with western players are making the significant inroads in the Indian semiconductor market.

The ministry of electronic equipment and information The existing policy has not worked as it offered little commercial viability for the personal sector. Earlier, a Jaypee-led consortium pulled midway from a project for setting up of a semiconductor wafer fabrication production centre. Lately, yet another consortium, headed by Hindustan Semiconductor Manufacturing Corporation (HSMC) including ST Microelectronics and Silterra Malaysia, that had also received approval to prepare a fab unit, has been facing challenges in linking up the funding. The two jobs were worth Rs 51,000 crore. Still, India has a competitive edge over other nations due to its large engineering ability pool. It supplies a large pool of a technically and scientifically-skilled workforce. At precisely the exact same time, the nation has ample semiconductor design talent at competitive prices.

The future design firms in Indian Semiconductor Market will arise with The development of fabless design companies from India. These firms would be Focusing on producing products for the Indian Semiconductor Market. India can Just take the lead in electronic systems design and electronic product manufacturing. The absence of a legacy generates for India, the exceptional A chance to leapfrog technology. The government of India has directed the Section of electronics and information technology to guarantee the net It's Very encouraging to see greater attention on the ESDM sector in the last couple of A significant quantity of work was done to bring out National Electronics Policy and National Telecom Policy, from the government in Consultation with industry. Some of the initiatives outlined in these policies Are currently in the process of implementation, for example, Preferential Market Access (PMS), Electronics Manufacturing Clusters (EMC) and Modified Special

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