Electronics India

agreementkittensSemiconductor

Nov 2, 2013 (3 years and 9 months ago)

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Electronics India


The Second Sunrise


Vandana Srivastava


27
-
02
-
32013

Electronics Industry: World Scenario




Largest and fastest growing manufacturing industy in the
world.


Reported at USD 1.75 Trillion and expected to reach USD
2.4 Trillion by 2020.

Electronics Industry: Indian Scenario

Huge Market : Rapid increase in domestic demand due to
-




Growth in income levels leading to higher off take of


Electronics products



Automation demands of corporate sectors



Government’s focus on e
-
governance.


Why India ?

1.

Huge Market


2.
Large Talent Pool


3.
Conducive Policy


4.
Low Operating Costs


4

Big Reasons

32.5

99.5

69.6

0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
400

Demand & Production

Year

Demand

CAGR



24
.
4
%

CAGR



37
%

CAGR



15
%

Values in US$ Bil

Demand & Production Trends for 2020

Electronics Market in India

Burgeoning Needs, Emerging Opportunities

| Semiconductors

Cost of semiconductor design (US$ Mil, 2010)

Projected semiconductor design
market in 2020

US$ 60
-
80 Bil

Projected semiconductor market in
2020

US$ 60
-
80 Bil

8

Demand in 2010

~ US$ 11
Bil

Projected demand 2020

~ US$ 34
Bil


Broadband

on

Demand

by

2015
,

600

Mil

connection

by

2020

at

min
.

2

Mbps

speed



NOFN

:

US
$

4

Bil

project

to

provide

broadband

connectivity

to

panchayats




NKN

:

US
$

1
.
2

Bil

Infra

project

to

connect

educational

and

research

institutes


|Telecom equipment


Total

telephone

subscribers

~

950

Mil,

teledensity

77
%


9


The

consumer

durables

market

recorded

revenues

of

USD
6
.
3

billion

in

FY
10



During

FY
03
-
10
,

the

industry

expanded

at

a

CAGR

of

11
.
7

per

cent



Urban

markets

lead

the

revenues,

accounting

for

two
-
thirds

of

the

total

sales

in

India



Refrigerators

,

Air

conditioners

(ACs)

,

Washing

Machine

&

Televisions

Driving

Growth



| Consumer Durable Market

10


Consumer

Electronics

(CE)

represents

one

of

the

largest

segments

of

the

overall

electronics

industry

in

India
.




The

market

is

anticipated

to

grow

at

a

CAGR

of

around

17
%

during

2012
-
2015

to

reach

over

US
$

15

Billion

by

the

end

of

2015





| Consumer Electronics

11


Value

of

electronics

in

automobiles

~

20
%
-
40
%
,

increasing

rapidly



Production

of

nearly

18

Mil

Automotive

vehicles

in

2010
-
11


| Automotive Electronics


Digitization of controls and expanding
inclusion of safety and sophistication features.



Evolving trend of localization in product
procurement by Auto OEMs

12


Size

of

medical

electronics

equipment

market

by

2020

~

US
$

5

Bil



GoI

committed

to

development

of



Affordable

medical

electronic

device

industry



Devices

typical

to

the

environmental

&

infrastructural

condition

prevalent

in

India




| Medical Electronics

Adapted from Indian Medical Electronics Industry Outlook 2020 , Deloittee &
FICCI , December 2011

13


India

has

had

significant

scope

in

solar

cell

and

module

manufacturing
.



The

disability

due

to

lack

of

presence

in

the

upstream

sectors,

such

as

polysilicon

and

wafer

is

getting

addressed



Government

in

the

advanced

stage

of

getting

a

Fab

setup

in

India
.


Jawaharlal

Nehru

National

Solar

Mission



Enabling

policy

framework

for

the

deployment

of

20
,
000

MW

of

solar

power

by

2022
.



Ramp

up

capacity

of

grid
-
connected

solar

power

generation

to

1000

MW

within

three

years



by

2013



An

additional

3000

MW

by

2017

through

the

mandatory

use

of

the

renewable

purchase

obligation

by

utilities

backed

with

a

preferential

tariff
.


| Solar Power

14


Aviation


Passenger

and

cargo

movement

has

increased

by

a

CAGR

of

19
.
14
%

and

9
.
91
%

during

the

period

from

2003
-
04

to

2007
-
08
.



The

fleet

size

has

grown

by

23
.
77
%
.



The

civil

aviation

market

is

expected

to

register

more

than

16

per

cent

CAGR

during

2010
-
2013
.



The

Indian

commercial

aerospace

market

is

estimated

to

absorb

about

1
,
100

commercial

jets

worth

Rs
.
585
,
000

crore

over

the

next

20

years
.

| Aerospace Sector

Defense


Major

defence

acquisition

and

development

programmes

comprising

Medium

Multi

Role

Combat

Aircraft

(MMRCA),

Fifth

Generation

Fighter

Aircraft

(FGFA),

Multirole

Transport

Aircraft

(MTA),

Medium

Lift

Helicopters

(MLH)

and

Light

Utility

Helicopters

(LUH)
.


Space


Indigenous

suppliers

provide

an

estimated

70

per

cent

of

the

technology

content
.



The

current

major

space

programmes

are

PSLV,

GSLV,

INSAT

and

IRS
.

15

Demand in 2010

< US$ 1
Bil

Projected demand 2020

~ US$ 35
Bil


Lower

carbon

emissions

by

20
-
25
%

by

2020



Distribution

of

free

LED

lights

to

all

Below

Poverty

Line

(BPL)

families

(
20

Mil

lights)



Government

initiatives

:



Excise

duty

reduced

to

6
%

on

LED

lamps

and

LEDs



SAD

fully

exempted

on

LEDs

used

for

manufacture

of

LED

Lamps

| LED Market

16


India

PC

shipments

increase

in

2012

~

17
%
;

world

average

~

4
.
4
%



GoI

aims

to

provide

1

tablet

to

every

student

under

Aakash

scheme



State

Government

initiatives



Free

laptop

to

students

in

Tamil

Nadu

and

Uttar

Pradesh



Other

states

coming

up

with

similar

schemes

Projected

Market

for

laptop,

desktop

by

2020

US$ 34
Bil

| Computers

17


Cabinet

has

approved

providing

Digital

Addressable

System

(DAS)

throughout

country

by

December

2014



Tamil

Nadu

state

government

owned

Arasu

Cable

TV

Corporation

floated

tender

for

2

Mil

STB

Projected

Market

for

Set

Top

Box

in

next

5

years

200 Million units

| Set Top Box

Electronics
Market

by segment


Segment

Market
Size *

Telecom Equipment

34

Laptops, Desktops, Tablets

34

LED

35

Set Top Boxes

10

Automotive Electronics

10

Medical Electronics

8.5

Consumer Electronics

India: 2020

* US$ Billions


Challenges


Infrastructure gap


Tax Structure


Supply chain and logistics


Inflexible labour laws


Limited R& D focus


Inadequate funding


Limited value addition


Strengths


Chip Designing


Embedded system software


Huge market


Large talent pool


Low operative costs


Conducive environment



Conducive Policy Environment


Infrastructure, Incentives, Innovation

National Policy on Electronics, 2012

Holistic, Investor
-
friendly, Market
-
driven

ELECTRONICS INDIA

Billion Needs, Million Chips

“To create a globally competitive
electronics design and manufacturing
industry to meet the country's needs and
serve the international market”


I nvestment : US$ 100
Bi l

Producti on : US$ 400
Bi l

Empl oyment : 28 Mi l

NPE Vision 2020


ESDM

Sector

National

Policy

on

Electronics

|

Major

strategies


Setting up of Semi
-
conductor Wafer
Fab

in India

I


Preferential Market Access

II


Modified Special Package Incentive Scheme (M
-
SIPS)

III


Electronics Manufacturing Cluster Scheme (EMC)

IV


Electronics Development Fund (EDF)

V


Mandating Safety Standards

VI


Human Resource Development

VII


Communication & Brand building

VIII

Number

of

strategies

identified

under

NPE

>
50


Subsidy

upto

~
USD

10

mil

per

100

acres

of

land




Applicable

to

both

Greenfield

and

Brownfield

projects




Targeting

10

Clusters

in

2013
,

and

200

by

2020


Electronics

Manufacturing

Clusters


Infrastructure Development



Roads



Power



Water



ETP’s



Testing facilities



Social Infrastructure


Subsidy of
50
-
75%

ELECTRONICS
INDIA

Billion Needs, Million
Chips


Reimbursement of CVD/excise for capital equipment
in non
-
SEZ units



Reimbursement of Central taxes and duties for 10 years
in select high tech units like
fabs

and ATMPs



Available for entire value chain of identified
electronics products



Incentives available for 10 years from the date of
approval

Substantial

CAPEX

subsidy

Subsidy of
20
-
25%


Modified

SIPS

ELECTRONICS
INDIA

Billion Needs, Million
Chips


India

:

Latest

destination

for

Chip

mfg
.

based

on

strength

of

Chip

design



Global

responses

sought

in

the

form

of

EOI

to

setup

Fabs



Leading

players

have

expressed

interest



Partners

for

Fab

project

to

be

finalized

by

March

2013



Semiconductor Fab


FAB

in

India



Decision by
March 2013

ELECTRONICS
INDIA

Billion Needs, Million
Chips


Preference

to

domestically

manufactured

electronic

goods

in




Government procurement



Electronic goods having security implications



Extent

of

Government

procurement

from

domestic

manufacturers

will

not

be

less

than

30

%

of

the

total

procurement
.



Enabling

framework



WTO

compatible



No

discrimination

between

foreign

and

Indian

companies



Preferential

Market

Access

(PMA)

ELECTRONICS
INDIA

Billion Needs, Million
Chips

EDF

Daughter fund


infra

Typical
Daughter
fund

Daughter fund
-
Innovation

Typical
Daughter fund

Typical
Daughter
fund


Electronics

Development

Fund

(Proposed)

Size

of

EDF

US$ 2
Bil


Fund

to

promote

Innovation

and

IP

and

R&D,

product

commercialization,

etc

in

ESDM,

nano
-
electronics

&

IT

sectors



Comprises

of

“Daughter

Funds”

of

size

US
$

20

Mil

-
100

Mil



Each

fund

to

have

Govt
.

share

from

25
%

-

75
%
;

remaining

from

private

and

financial

institutions

ELECTRONICS
INDIA

Billion Needs, Million
Chips


15

electronics

products

notified

under

safety

standards

on

October

3
,

2012



Allows

Self

registration



BIS

accredited

labs

to

test

the

goods


Mandating standards

Order

comes

into

effect

from


April 3, 2013

ELECTRONICS
INDIA

Billion Needs, Million
Chips

Export

Incentives

on

FOB

Value

Export Incentives

2
-
5%


Focused

Product

Scheme

-
2
%

duty

credit

script



Special

Focused

Product

Scheme
-
5
%

duty

credit

script



Focused

Market

Scheme


ELECTRONICS
INDIA

Billion Needs, Million
Chips



Electronics and Telecom Sector Skill Council set
up



31

ICT and Electronics Academies
-
Scheme under
approval



Skill Development for
1
mn

persons



Special Manpower Development
Programme
-

Phase III for VLSI and chip design for
10,000

students .


HR Initiatives

PhDs

in

Electronics

by

2020

2500 annually

ELECTRONICS
INDIA

Billion Needs, Million
Chips

Electronics?

Think India !