Semi Conductor Industry

G.N.S PrasadaRao
(IB-1226115109)
 Introduction
• India's first analog semiconductor fab in Madhya Pradesh

 growth of 17.3 per cent since 2009

 Presently 5.1 percent share of the global pie

• Indian semiconductor design market had reached US$ 14.5 billion in 2015.

• International Monetary Fund (IMF) forecasts global GDP growth of 3.6 percent
in 2014 and 3.9 percent in 2015.

(India in Business Ministry of External Affairs,2015)

 Government Initiatives
Proposal
• Investment proposals worth Rs 10,000 crore (US$ 1.52 billion) over the next
two years
Plans
• Government plans to invest US$10 billion in two computer chip manufacturing
facilities
Policy
• The NEP(New economic Policy) aims to draw investments Us$100 billion and
to create Employment of 28 Million by 2020

• The Union cabinet has reconstituted an empowered committee on setting

up semiconductor wafer fabrication manufacturing facilities in the
country.

(IBEF,2015)
 Growth in Semiconductor Sector

Opportunity's
• The semiconductor design provides opportunity to multinational companies
to come to India and tap the potential.
Significant export
potential for this Growth in the Chip
industry Design industry

Reasons for
Growth in
Semiconductor
Industry

Increased Unprecedented
semiconductor growth in domestic
content in the consumption of
electronic industry electronic goods

(SEMI,BOSON TECHNOLOGIES,2015)
 Market Size
• To build a fab using current state-of-the-art technology costs about $5bn
(Rs 30,000 crore) initially.
Growth
• Market growth
 2015 at 3.4 percent ($344.5 billion in total sales)
 2016 at 3.1 percent ($355.3 billion)
• Growth forecasts by 0.4 percent to 3.3 percent, and global growth for
2015 was lowered slightly to 3.8 percent.

(SIA,THE TIMES OF INDIA,IBEF,2015)

 Industry on rise
Investments
 JP Associates : Outlay about Rs 2,63,000 million for the fab

 Hindustan semiconductor manufacturing Corporation(HSMC): To

Invest about Rs 252,500 million

Demand & supply

• Electronics Demand and supply gap is likely to reach US $ 300 Billion by 2020

Imports
• Electronics imports increased by almost 15 percentage points to around 50
per cent by fiscal 2016-17

(ELECTRONICSB2B,2015)
 Future of Semiconductor Industry
• In fact, by 2016 Nucleon had picked up 15%,by 2020 it raise up to 35%

• By 2016, expect to bring exports down to 50 per cent

• In next 5 Years the sector creates 27 million job opportunities

ISRO Proposal
• ISRO-made launch satellites Semiconductor is the one of the main
component to use in that, they want 35% of semiconductors to use in it.

(Business standard, Your Story,2015)

 Recent challenges
• By entering of big players in Semiconductor companies are forming
alliances, so the manufacturing cost increases

Mock in Industry
• Copy-cat suppliers are a problem

• Substitutes in the semiconductors is the real challenge to grow in Industry

High cost for cleaning

• Clean room costs for large fabs (9,000 meter square) are rapidly raising to
over 31,41,706

(ACADEMIA,ELECTRONICS MAKER,2015)
 References
1. Business Standard ’Semiconductor industry warms up to opportunities under 'Make in India' programme’
(3rd February, 2015).
URL:http://www.business-standard.com/article/economy-policy/semiconductor-industry-warms-up-to-
opportunities-under-make-in-india-programmme-115020200269_1.html
2. electronicsb2b.com ’ The Rising Semiconductor Industry in India’ (26th March 2015).
URL:http://electronicsb2b.efytimes.com/rising-semiconductor-industry-india/

3. IBEF ‘Semiconductor Industry in India’, (September 2015).

URL: http://www.ibef.org/industry/semiconductors.aspx

4. India in Business Ministry of External Affairs, Govt. of India Investment and Technology Promotion Division
‘S ‘Semiconductor’ (14th April, 2015).
URL:http://indiainbusiness.nic.in/newdesign/index.php?param=industryservices_landing/407/3

5. THE TIMES OF INDIA ‘Does India really need a $5bn semiconductor unit?’ (21st July, 2015).
URL: http://timesofindia.indiatimes.com/business/india-business/Does-India-really-need-a-5bn-
semiconductor-unit/articleshow/48151513.cms

6. YOUR STORY ’Why is India waiting to get into the semiconductor business’ (10 th August, 2015).

URL: http://yourstory.com/2015/08/semiconductor-business/