A growing market despite a decline in the growth rate
Bangalore, India - Jan 28, 2009 (PRN): The India Semiconductor Association (ISA) and Frost and Sullivan (F&S) released the ISA-Frost & Sullivan report update 2008-10 in Bangalore today. ISA is the trade body representing the Indian semiconductor driven industry. This is the third report on the subject and the second update.The report was released by Jaswinder Ahuja, Chairman, ISA and Corporate VP and Managing Director Cadence Design Systems India along with Poornima Shenoy, President, ISA and Anand Rangachary, Managing Director, South Asia & Middle East, Frost & Sullivan.
According to the report, the total revenues of the Indian semiconductor market (Total Market - TM) are poised to grow from USD $5.9 billion in 2008 to USD $7.59 billion in 2010 at a CAGR of 13.4%. The Total Available Market TAM revenues are anticipated to climb from $2.53 billion in 2008 to $3.24 billion in 2010 with a CAGR of 13.1%.
The decline in CAGR, from 26.7%, in the earlier report of 2007, to 13.4%, in the current report, is on account of revised investment and manufacturing scenario seen in the second half of 2008. There has also been a decline in the Average Selling Price ASP for various semiconductor components ranging from 3 to 10 percent depending on the final product and the semiconductor content. The overall global slowdown had also not been anticipated during the previous report of 2007.
Speaking at the launch, Poornima Shenoy said, �India is a story of growth and this is important in such times though growth may be below past projections. The current slowdown will impact manufacturing investment prospects. A low manufacturing index for electronic products leads to higher imports and thus lowers the local potential for semiconductors, their key component.�
Anand Rangachary said �Information Technology & Office Automation, wireless handsets and communications segments are going to define the semiconductor market growth. The semiconductor market growth is expected to be driven by products/ services such as set-top boxes, wireless handsets, the 3G rollout, deployment of WiMAX, notebooks and smart cards. Opportunities exist for semiconductors in LCD TV, digital camera and Storage Flash Memory markets�.
Definitions
Total market(TM) for semiconductors: The total consumption of semiconductors in India, in any form (can be purchased locally, imported as part of Completely Knocked Down (CKD) or Semi Knocked Down (SKD), imported as a complete product), by any source (Sources are directly from semiconductor company offices in India, distributor sales, direct imports etc) and in either currency (US$ or Indian rupee).
Total Available Market (TAM) for semiconductors: Consumption of semiconductors in India by virtue of manufacturing of end-user products in India + consumption through a local purchase order in India.
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About India Semiconductor Association (ISA)
ISA is the premier trade body representing the semiconductor driven industry in India and has around 120 members from India and outside it. ISA aims to establish India as the preferred global destination for semiconductor and solar photovoltaic companies. This includes chip design and embedded software companies, the solar fabs and the related ecosystem. ISA is committed towards building global awareness for the Indian semiconductor driven industry and supporting its growth through focused activities. ISA supports the business interests of its members. ISA is engaged in providing current and credible data on the sector through research publications; working with state and central governments on policy related matters; and having events to create visibility and networking opportunities. ISA has played a prominent role in working with the Government of India in the formation of the Indian Semiconductor Policy 2007.
Ron Somers President - US India Business Council (USIBC), Washington D.C. - According to one top India business leader Ron is, "one individual who is the key link among the United States and India and is promoting open access, free trade, and is impacting commercial relations across the countries." Ron has known India for twenty years and has might strong ties to Indian community leaders. Ron was a resident of India for over eleven years and is well verse in Hindi and Urdu and even speaks a little Malayalam and Tamil. If you're finding for the bridge to India, Ron is your man.
Ashesh (Alex) Shah, Entrepreneur and Global Head - Trikona Trinity Capital, London, U.K. - Trikona's India fund was Tue first to be sold on the AIM stock exchange in the UK. Shah has been mingled in several ventures outside of real estate comprising a start-up involved in making one card to replace all of your loyalty cards. Why he done this list is that Shah specializes in raising funds for India infrastructure and real estate. He's had a successful record of success in this field, and is poised to become one of India's leading capital fund raisers.
David Jackson, Founder and CEO - Seeking Alpha, New York City, NY - David introduced Seeking Alpha in early 2004. Seeking Alpha has since emerged to be the top destination for stock market opinion and analysis on the Internet, and is broadly read by finance professionals and serious individual investors. Seeking Alpha consistently monitors the best India investment content on the web and blogs and posts them on his site in an intuitive method. He's significant because he is inspiring more investor interest in India and offering the transparency India needs in order to give foreign investor confidence in the future.
Mark Fidelman, Co-Founder and Vice President - The WIRE Group, Los Angeles, CA - Mr. Fidelman has been in technology and real estate related ventures and worked at A.T. Kearney as a Director. Fidelman has been in India for the past 4 years and is one of India's largest cheerleaders. He supported start one of India's first real estate funds aimed on offering US quality commercial buildings in India. He is also one of the most well associated real estate professionals in the US rubbing shoulders with some of the largest names in India real estate. His Rolodex of Global 3000 real estate executives lets him fast access to those moving or expanding into India. He's significant because of his ability to associate aspiring India investors and Corporations to the right people.
Sanjay Bhatnagar , CEO - Thot Capital Group, New York, NY - Don't hold the fact that Sanjay was the former India chief of Enron and its controversial try to bring power to India. Bhatnagar's THOT Capital Group is now active in green-field infrastructure development and asset buy-outs chiefly targeting on energy and water sectors. He is a regular investor in India and has tons of experience in both venture capital and infrastructure. He's significant because of his work in Green infrastructure enhancements and his associations to the green industry in India.
Ash Lilani, President, India and China - SVB Financial Group, San Francisco, CA - Ash Lilani is the president of India and China for SVB Financial Group as well as managing director of the company's India-targeted investment fund, SVB India Capital Partners. Lilani is accountable for the strategic direction and management of the company's operations and real state pursuits in Asia. He is presently director and treasurer of the U.S.-India Venture Capital Association. Ash is significant because of his myriad links to companies in the US and India. Silicon Valley Bank is a very vital business link to India.
Sant Singh Chatwal, Chairman and Chief Executive Officer - Hampshire Hotels & Resorts LLC - Currently Chatwal is building 2 Dream boutique hotel properties in India, one in Kochi on the west coast and another in south central Hyderabad. By 2012, Chatwal expects to have ten Dream properties across India. He's a major fundraiser for the Democratic Party, comprising Hillary Clinton's presidential campaign and if she wins, he will have even greater influence in the upcoming years. Chatwal continues to proclaim his innocence in India and the US on enormous charges of ill-doing. He's significant (really vital if Hilary wins) due to his vast and powerful network of people in the US and India.
Jonathan Yap Neng Tong, CEO - India Funds, Ascendas and CEO of the Trustee-Manager of Ascendas India Trust, Singapore - Over his 15-year real estate career, Mr. Yap has held positions in investment management, asset management, fund management, development management, marketing, leasing, sale and valuation. He has worked in Singapore, India, Australia and Hong Kong. As some of you aware, Ascendas innovated India's true international class buildings in Bangalore, India named ITPB or International Tech Park, Bangalore. Mr. Yap is significant because he recognizes that quality construction in India matters and he's willing to spend more to innovate international quality commercial buildings.
Brian Guzman, Managing Partner - Indus Capital Partners, New York, NY - Brian Guzman is a Partner and General Counsel of Indus Capital Partners, LLC ("ICP"). Brian entered ICP in August 2005 as a Managing Director and Counsel. He works in stealth mode but is well linked within the US. If you're searching to finance a real estate deal in India, Brian should be at the top of your list.
Tarun Jotwani - Managing Director - Lehman Brothers India, New York, NY - Tarun Jotwani serves as Chairman and Chief Executive Officer of India of Lehman Brothers Inc. Mr. Jotwani serves as Chief Executive Officer of India and co-head of fixed income for Europe of Lehman Brothers Holdings Inc. Jotwani is aiming to raise Lehman's first dedicated India real estate fund this year and is trying to build a quality portfolio. If you're looking to sell quality projects in India or want a fantastic financial partner, then Jotwani is your man.