The Indian semiconductor design services market is forecast to grow by an annual 21.7 per cent to $11 billion by 2010, a joint study by the India Semiconductor Association (ISA) and IT research firm IDC says.
The market was valued at $6 billion in 2007. The embedded systems segment is expected to record the highest growth, followed by very large scale integration (VLSI) of transistor-based circuits into a chip, and hardware design. At $4.9 billion, revenue from embedded software accounted for around 81 per cent of the total value of semiconductor design services in 2007.
The workforce employed by the semiconductor design services industry is seen growing to 2.19 lakh in 2010 from 1.3 lakh in 2007.
ISA chairman S Janakiraman attributed the growth momentum to the increasing maturity of Indian companies, the availability in the country of advanced semiconductor tools and technologies as well as the higher confidence with regard to issues relating to intellectual property rights.
Growth rates for the sector in India are more than thrice the global average of 6 per cent. Indian companies have been increasing their expertise and capabilities in end-to-end design there is also the emergence of outsourced third-party design services companies, the report said.
The industry will see closer proximity between third-party service providers and original equipment manufacturers for end-to-end design, it added. The growth of opportunities in the domestic semiconductor market could see some localisation of product design and manufacturing, Janakiraman observed.
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