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Electronics System Design & Manufacturing (ESDM) The India Story PVG Menon President India Semiconductor Association (ISA) April 2012. India Semiconductor Association. Established in 2004 The voice of the electronics, semiconductor and embedded systems industry in India
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Electronics System Design & Manufacturing (ESDM)The India StoryPVG MenonPresidentIndia Semiconductor Association (ISA)April 2012
India Semiconductor Association • Established in 2004 • The voice of the electronics, semiconductor and embedded systems industry in India • 181 members spanning across product companies, VLSI design companies, embedded software houses, eco-system players, Venture Capitalists etc. • 51% are Indian companies • 23% are systems companies • Headquartered out of Bangalore with office in Delhi • Full-time secretariat headed by National President, with an Executive Council comprising of elected industry leaders ISA Confidential May 2011
ISA Vision 2020 • Vision • Make India a powerhouse in Semiconductors and Electronics • Goal • ESDM industry to reach $400B target by 2020 • Strategy • Knowledge Partnership with GoI: Stimulate growth of the ESDM industry • Grow and Mentor: Talent, Innovation, Entrepreneurship • Build Brand India: Destination for ESDM • International Alliances: Bilateral business growth and sharing best practices
ISA 2011-12: The 4 Pillar Framework ESDM Vision 2020 Segments Thought Leadership Brand Building International Alliances Policies Incentives Infrastructure Innovation Talent Entrepreneurship
India Story Robust GDP growth Large domestic market • 560 million consumers in 20-49 age group expected by 2015 • 5th largest consumer market by 2025 • Increased disposable incomes & changing lifestyles • GDP projected to quadruple to 4 trillion US$ economy by 2020 Human capital Infrastructure initiatives • Third largest pool of scientific & technical manpower • Large English speaking population • Over 380 universities (11,200 colleges) • 1,500 research institutions and 9,000 PhDs • Over 200,000 engineering graduates, 250,000 post graduates and 2,000,000 graduates • infrastructure spend to be the biggest thrust in coming years • Investment in infrastructure in past five years doubled from 4% to 8% of GDP • US$ 1 trillion investment proposed for 2012-17
Demand Drivers for Electronics in India • Growth in per capita income and corporate spend on electronics • Per capita income in India has doubled between 2004-05 and 2010-11 to touch Rs 54,835 per annum. • Government focus on e-governance, Education, Medicine, e-infrastructure and applications • Growing penetration of Internet including Broadband and Mobile phones • Mobile phone connections in India have grown from 1 million in 1998 to 851 million subscribers as of June 2011 • National Optical Fiber Plan • Need for innovative products at low cost • Medical Electronics • Sub $50 tablet for education
ESDM: A Priority for India • Substantial Demand - The demand for electronics in India was $45 Bn in 2008-09 and is expected to reach $400 Bn by 2020. • Exponential Growth - India’s electronics industry is expected to grow at 22% per year, which is 7x the global rate • Major Segments - 4 major Segments of demand in India by 2020 would be : • Telecom Products and Eqpmt - $152 bn • Exports - $80 bn • Semiconductor Design - $60 bn • IT Systems and Hardware - $56 bn Current and forecasted Electronics Systems Design & Manufacturing (ESDM) demand in India , 2009-2020E ($ Bn) +22% $400Bn $125Bn $45Bn
Production level electronics industry may reach with favorable policy environment Gap between current and expected domestic production, offering significant opportunities for improvement Production level electronics industry will reach with current policy environment Impetus behind ESDM initiative
National Electronics Policy 2011: Highlights • Vision • To create a globally competitive ESDM industry to meet the country’s needs and serve the international market • Mission • To promote indigenous manufacturing in the entire value-chain of ESDM for economic development • To develop capacities for strategic electronics in India • To promote a vibrant & sustainable eco-system of R&D, Design, Engineering and Innovation in Electronics • To develop high-quality electronic products at affordable prices for inclusive adoption and deployment
Proposed initiatives for globally competitive ESDM sector • Setting up of Semiconductor Wafer fab facilities and its eco-system for design and fabrication of chips and chip components. • Provide attractive fiscal incentives across the value chain of the ESDM sector through a Modified Special Incentive Package Scheme (m-SIPS) to eliminate the disability costs in manufacturing • Provide Preferential Market Access for domestically manufactured electronic products including mobile devices etc to address strategic and security concerns of the Government consistent with international obligations in procurement ; Announced • Provide incentives for setting up of over 200 electronics manufacturing clusters • Establish a stable tax regime (both at state and central level) to attract global investments and to encourage electronics sector through appropriate fiscal incentives and taxation mechanisms. • Aggressively market India as an investment destination for ESDM
For more information, contactPVG MenonPresidentIndia Semiconductor Association (ISA)E-Mail: president@isaonline.orgTel: (080)-4147-3250URL: www.isaonline.org