Semiconductor consumption reaches $8 bn in 2012, up 7.4 percent

India's semiconductor consumption has reached $8 billion in 2012, a increase of 7.4 percent from 2011, according to Gartner.

On the other hand, the global semiconductor revenue has declined 2.6 percent to reach $299.9 billion in 2012.

"The worldwide semiconductor industry suffered serious disruption in 2012. Excess inventory in the supply chain was the key factor," said Ganesh Ramamoorthy, research director at Gartner.

High inventory levels affected semiconductor consumption in India however, a relatively better domestic economic climate and growth in consumer spending helped semiconductor consumption growth in India added Ramamoorthy.

Of the three key electronic devices - mobile phones, PCs and LCD TVs, which account for over 70 percent of India's overall semiconductor consumption, LCD TV saw the biggest growth of nearly 45 percent in terms of semiconductor consumption during 2012, while mobile phones' semiconductor consumption grew by 5.7 percent and PCs declined by 0.3 percent.

"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 percent over 2012," commented Ramamoorthy.

Mobile phones, PCs and LCD TVs will account for 74 percent of India's total semiconductor consumption in 2013.

"The improving consumer sentiment on the back of a likely stabilization 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," said Ramamoorthy.