Semi-conductor consumption to reach $9.6 bn in 2013: Gartner

This is in contrast to the global trend as worldwide semi-conductor revenue declined 2.6% to reach $300 bn in 2012

India's semiconductor consumption reached $8 billion in 2012, a 7.4% increase from the previous calendar year, and is projected to reach $9.6 billion this year, according to Gartner, Inc.

This was in contrast to the global trend as worldwide semi-conductor revenue declined 2.6% to reach $299.9 billion in 2012, the technology researcher said.

"The worldwide semiconductor industry suffered serious disruption in 2012. Excess inventory in the supply chain was the key factor," said Ganesh Ramamoorthy, research director at Gartner.

"High inventory levels affected semiconductor consumption in India as well during 2012. However, a relatively better domestic economic climate and growth in consumer spending helped semi-conductor consumption growth in India."

Of the three key electronic devices – mobile phones, PCs and LCD TVs, which account for over 70% of India's overall semi-conductor consumption, LCD TV saw the biggest growth of nearly 45% in terms of semiconductor consumption during 2012, while mobile phones' semiconductor consumption grew by 5.7% and PCs declined by 0.3%.

"With the global semiconductor industry poised for a rebound starting in the second quarter of 2013, we expect semiconductor consumption in India to also grow. Semiconductor consumption in India will reach $9.6 billion in 2013, an increase of 20% over 2012," said Ramamoorthy.

"Mobile phones, PCs and LCD TVs will account for 74% of India's total semiconductor consumption in 2013."

The improving consumer sentiment on the back of a likely stabilisation in the global, as well as domestic economic conditions, coupled with a return to more normal inventory levels in 2Q13, will be the key factors that will drive semiconductor consumption growth in India during 2013, he said.