Guest Column: Thermionic India

The semiconductor industry of India is like a feeder to the electronic
industry. It has gone through significant delayering in the last decade. In
addition to the traditional integrated device manufacturers, new leaders have
emerged in the semiconductor industry. These are mainly in electronic design
automation, fables semiconductor, semiconductor equipments, semiconductor
fabrication, and packaging and testing sectors. Increasing integration of
digital, analog, and RF technologies has made many of the electronic gadgets
simple handheld, battery operated and wireless equipments.

These tremendous changes in the semiconductor ecosystem have brought in
significant opportunities and challenges for Indian semiconductor industry. The
delayering has brought in a level playing field for countries such as India.
This was done through offshoring, outsourcing, distributed development, and
manufacturing. Semiconductor companies across the world are now looking at India
as the destination for R&D.

With the high growth of GDP in India and increasing middle class population,
India itself is emerging as a major market for the semiconductor and electronic
products. In mid 2004 few of the industry leaders got together, brainstormed,
and felt the need for an independent industry body that focuses on the
semiconductor industries and opportunities in India. This included multinational
semiconductor product companies as well as Indian semiconductor design services
organizations. In Oct 2004, India Semiconductor Association (ISA) was launched.
It has grown into 100 plus member industry body in a matter of 18 months and has
most of the leading MNCs, Indian companies, and startups in the semiconductor
space as its members.

ISA is the only organization for the semiconductor industry in India. Mission
of ISA includes facilitating growth of the semiconductor industry through
building proper ecosystem and positioning India as a leader in the semiconductor
space. It is achieved through providing market research, conducting events
related to the industry, supporting talent generation initiatives, enabling
visits of industry delegations from/to India and working with the government
bodies to set up proper policies and structure for the growth of the industry.

During 2005, ISA conducted a market study through Frost & Sullivan
(F&S) on the Indian Semiconductor Industry. The findings were an eye opener
for not only the government and public, but also for the semiconductor industry
itself.

• The ISA-F&S report assesses the 2005 electronic consumption in India
  at $28.2 bn and the electronic production in India at $10.99 bn employing
  445,640 persons.
• This report predicts the electronic consumption in India to grow to $363
  bn, a 13 fold increase by 2015 and the electronic production to grow to $155
  bn, a 14 fold increase and will employ 2,777,300 persons.
• The ISA-F&S report assesses the semiconductor and embedded design
  market in 2005 at $3.25 bn and predicts that to grow into $43.07 bn, a 13
  fold increase and will directly employ 781,780 design professionals from the
  2005 strength of 74,850.
• It predicts the semiconductor fabrication facility, which is none now will
  grow with more than one fab and will employ 23,000 persons.

With such a rapid growth to be seen within the next 10 years, semiconductor
technology driven industry would make a direct contribution of more than 12% to
country's GDP and create more than 3.6 mn jobs. Very few industries have a
potential to cause such an impact on the nation's economy. India has an
opportunity to define the landscape of the global electronic industry through
innovation and its services. There is a reason and season for India to achieve
leadership in the specific market of electronics and semiconductors.