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Semiconductor consumption to reach $9.6 billion this year: Gartner

MUMBAI: Driven by better domestic economic climate and growth in consumer spending, consumption of semiconductors in India will reach $ 9.6 billion this year, registering an increase of 20 per cent over 2012, says a survey. 

"Semiconductor consumption in India will reach $ 9.6 billion this year, an increase of 20 per cent over 2012. Mobile phones, 
PCs and LCD TVs will account for 74 per cent of India's total semiconductor consumption in 2013," Gartner Research Director Ganesh Ramamoorthy said in a statement. 

The semiconductor consumption in 2012 stood at USD 8 billion, registering a 7.4 per cent increase over 2011. 

This increase was in contrast to the global trend as worldwide semiconductor revenue declined 2.6 per cent to reach USD 299.9 billion in 2012, the report said. 

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

According to the report, of the three key electronic devices - mobile phones, PCs and LCD TVs, which account for over 70 per cent of India's overall semiconductor consumption, LCD TV saw the biggest growth of nearly 45 per cent in terms of semiconductor consumption during 2012. 

Semiconductor consumption in 
mobile phones grew by 5.7 per cent, while that of PCs declined by 0.3 per cent, it said. 

"With the global semiconductor industry poised for a rebound in the second quarter of 2013, we expect semiconductor consumption in India to also grow," Ramamoorthy said. 

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 second quarter of this year, will be the key factors that will drive semiconductor consumption growth in India during the year, Ramamoorthy added.