Gartner Says India Semiconductor Spending to Reach $9.2 Billion in 2012, a 20 Percent Increase from 2011

India Is The Fastest Growing Market In Terms Of Semiconductor Consumption For 2012

Mumbai, India, April 9, 2012 -- India semiconductor revenue is projected to total $9.2 billion in 2012, a 20 percent increase from 2011, according to Gartner, Inc. India is the fastest growing market in terms of semiconductor consumption for 2012.

"Semiconductor consumption in India is being driven from the changing demographics, increasing consumer affluence, economic growth and favorable government policy," said Ganesh Ramamoorthy, research director at Gartner. “Global electronic equipment manufacturing companies continue to expand their production facilities in India. The recent announcement by Nokia to move its mobile phone production facilities to Asia/Pacific is bound to benefit India as well, where Nokia already has a large production facility catering to the growing domestic and neighboring markets in the region. As a result, semiconductor consumption is set to grow at a rapid pace.”

Globally, the semiconductor spending is expected to reach $316 billion in 2012, a 4 percent increase from 2011, with mobile phones, media tablets, PCs, servers, LCD TVs, solid state drives and set-top boxes accounting for nearly 50 percent of the total semiconductor consumption during 2012. Media tablet unit production is forecast to increase 78 percent over 2011, and semiconductor revenue from media tablets will reach $9.5 billion in 2012. PC unit production in 2012 is projected to increase 4.7 percent, and semiconductor revenue from PCs will reach $57.8 billion. Mobile phone unit production is expected to grow 6.7 percent, with semiconductor revenue for mobile phones totaling $57.2 billion in 2012.

In India, mobile phones, PCs and LCD TVs will account for nearly three-fourths of India’s semiconductor consumption in 2012. Mobile phone unit production is expected to grow 21 percent, with semiconductor revenue for mobile phones totaling $4.8 billion in 2012. PC unit production in 2012 is projected to increase 7 percent, and semiconductor revenue from PCs will reach $1.8 billion. LCD TV unit production in 2012 is projected to increase 47 percent, and semiconductor revenue from LCD TV will reach $312 million in 2012.

“The improving consumer sentiment on the back of strong domestic economic growth and rising disposable income should prove 2012 a strong year for semiconductor consumption in India,” Mr. Ramamoorthy said.

Additional information is available in the Gartner report "Forecast: Semiconductor Consumption by Electronic Equipment Type, Asia/Pacific, 1Q12 Update." The report is available on Gartner's website at http://www.gartner.com/resId=1951215

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