India itself is a high growth market that will get sizable in the next five years for the semiconductor companies. No one can understand India and the emerging market requirements than the companies located here. That can be leveraged by the world to create value for money products that will serve the emerging market needs.
Indian companies are investing in technologies and creating intellectual properties/ building blocks of technologies. They are essential elements to create products/solutions in a shorter timeframe when the market starts recovering and builds appetite for consumption. Hence, Indian companies need to invest more in such areas and position themselves as value add vendors to source technologies.
The newer markets like electronics in healthcare and renewable energy space provides level playing field since our maturity level is no less inferior to the western world. We need to invest, create solutions and products that can establish India not only as a market, but also a leading technology provider for the global market.
While the global consumption of semicon has seen a drastic drop in Q4 of 2008 and likely to see a negative growth in the first half of 2009, India will be one among the few markets that will see increasing consumption through sale of electronic products. The captive and design services companies serving the semiconductor market is facing a head wind, no doubt. However, the impact on them is much lesser compared to what is happening in the rest of the world.
With the Indian market continuing to grow while the global semiconductor market is declining, we may end up seeing a slower growth, but an increased market share. Hence, I see the dynamics in the market will lead to us gaining our way for longer term, though we can't escape short term pains. When the recovery starts, India will gather much higher momentum of growth since it will be a lucrative market for selling and a lower cost market for sourcing for any global semiconductor players.
Posts
0 comments:
Post a Comment