With the newly heralded era of Internet of Things (IoT) dictating that the new generation of interconnected devices be capable of smart-computing, Indian semiconductor industry
is set for an exponential growth. Connected, Smart and Power Efficient are the three buzzwords the consumer of this generation is looking for in almost all technology products
. Devices that offer high performance consume low power and provide connectivity through audio, video and data are flying off the shelves at a much faster pace.
While two decades ago, technologies were driven by the enterprise to build efficient organisations, over the last decade, with the opening of economies such as India, the end consumers have started driving technological trends. This has created an enormous opportunity for the semiconductor industry.
The Indian semiconductor industry has witnessed a significant growth momentum led by multiple factors such as increased consumption of electronic goods, government’s focus on e-governance infrastructure and services, and a huge demand for networking products, especially in the telecom segment.
Intelligent embedded technologies are bringing down the cost of devices, leading to enhanced consumption. Proliferation of smart devices such as smartphones, tablets, smart TVs due to high disposable income, rise in the sale of automotive and consumer goods, growing healthcare network and emerging trends in personal monitoring, marking the influx in the sale of medical equipment are other key factors driving this growth.
An encouragement has been given to broadband penetration, e-governance initiatives, digitisation of cable industry particularly in the area of healthcare and education, distribution issues of the power sector and efficient smart grid solutions to address transmission.
The government is bullish on bringing significant transformation and is supporting adoption of next generation technologies to enable this. Whereas the consumer segment is a key driver of growth for the electronic industry, the Indian government has also played a part in impacting the industry. This has created a demand for intelligent networking products to build a smart and efficient infrastructure.
The advent of new technologies such as 4G and the upcoming 5G is also augmenting this demand. These factors are acting as a force multiplier, contributing towards the semiconductor industry’s growth in India. India has now moved beyond labour cost arbitrage and truly contributes towards product innovation.