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India VLSI design service market to touch $3 billion mark by 2017

Nov 2012

Semiconductor industry has become the backbone of almost every industry vertical, whether we take telecom, healthcare, consumer electronics, etc., semiconductor is now present everywhere. Though, India’s contribution towards global semiconductor market is less than 5.0% in-terms of value, but has shown significant growth over last one decade.

India is now home of almost all semiconductor giants. At present, there are more than 170 semiconductor companies in India which are working in the areas of embedded software development, board designing and the chip designing. Embedded software is the major revenue generating segment that has accounted for 75% plus of market revenues.

India VLSI design service market is driven by both captives and non-captives design centers. Captive design centers contributes major chunk of the market revenues, however, non-captive design centers also play a crucial role in the market. Wipro technologies, Smartplay Technologies and Sasken Communication are the leading companies in non-captive segment. According to 6Wresearch, India VLSI design service market is expected to reach $3.02 billion by 2017, growing at a CAGR of 16.25% during the period 2012-2017.

The design centers are designing chips for all the major industry verticals including Telecommunications, Networking, Consumer Electronics, Industrial, Healthcare, Automotive, etc. VLSI designing done by design centers is majorly done for consumer electronics vertical i.e. contributing 34.2% of the total market revenues, followed by networking vertical with 28.1% of the share.

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