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IESA
India Electronics and
Semiconductor Industry :
Opportunities for Japanese Engagements
October 2014
IESA
India Electronics and Semiconductor Association (IESA)
Extends a Warm Welcome to all for this JWG meeting.
IESA is committed to work together with the key stakeholders to realise the vision of
Development and Growth of Electronic Systems Design & Manufacturing (ESDM) sector and achieve
WIN-WIN proposition with Japan companies.
2
IESA 3
10th largest economy in the world, 3rd largest by 2030.
World's third-largest economy in purchasing power terms.
Dominated by young people with 60% of the 1.2 Bn Population between 15-54 age group
India has the 2nd largest pool of engineers and scientists in the world
In the next three years, up to 25% of the world's new workers will be Indian.s
India's GDP per capita will quadruple from 2007 to 2020, according to Goldman Sachs
220 out of Fortune 500 companies outsource to India
Half the world’s outsourced IT services come from India
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0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
2013 2014 2015 2016 2017 2018
63.53 70.4878.74 86.68
95.61105.53
12.0813.68
15.4617.66
20.20
23.14
Rev
en
ue
s ($
Bill
ion
)
Indian ESDM Industry: Revenue Forecasts Split by Product and Services (2013-2018)
Product Industry Size Services Industry Size
75.61
2013 TM Revenues of Domestic Electronic Product Market
= $50.61 billion
Very High demand for 3G and Smart Phones drive Mobile Devices growth
Tablets, Notebooks and Memory Cards position IT/OA as the second biggest contributor
Rapid growth in FPD TV market, Digitization drive propels STBs to make Consumer electronics the 3rd biggest revenue contributor
Mobile Devices
38%
Telecommunications7%Consumer Electronics
17%
Automotive7%
IT / OA18%
Industrial
7%
Others6%
128.7
115.8104.3
94.284.2
75.6
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20 products constitute 80% of local consumptionAim to meet 50 percent of demand by local high value addition by 2018
ProductRevenue % of
Total
Mobile Phones 38.85%
FPD TV 7.91%
Notebooks 5.54%
Desktops 4.39%
Digital Camera 2.73%
Inverters and UPS 2.65%
Memory cards and USB drives
2.46%
4W EMS 2.33%
LCD Monitors 2.02%
Servers 1.72%
Total of Top 10 Products
70.60%
ProductRevenue% of Total
Base Stations 1.61%
Power Supplies 1.28%
Set Top Box 1.13%
Printers and FPDs 1.06%
Routers/Switches 1.05%
Car Radio 1.02%
CFL 1.00%
Energy Meters 0.66%
Digital Instrument Clusters
0.58%
Smart Cards 0.52%
Total of Top 20 Products
80.52%
Indian Electronics Market: Top 20 Products by TM Revenues (2013)
Source: ISA and Frost & Sullivan
2013 Electronics Product TM = $50.61 B.
Focus on High Value add
opportunities for Immediate Impact : STB, Smart Energy meters, LED lighting, smart cards and auto Electronics( DRM radio’s, Body Electronics), Defence, Payment terminals.
Focus on developing key components and its ecosystem : PCB, Processor, LCD Displays, Power Devices and battery.
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Opportunities in the electronics ecosystem
Opportunities for collaboration and Joint Ventures
Assembly / testing of finished equipments,
manufacturing of accessories and others.
R&D and design in semiconductor design
and electronic systems.
Developing the entire value chain of
manufacturing from components to creating end products in India.
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0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
2010 2011 2012 2013 2014 2015
2.722.87
3.12
3.44
3.81
4.23
1.08 1.18 1.35 1.58 1.832.13
0.33 0.360.39
0.430.47
0.52
Total Domestic Manufacturing (High ValueAdd, $ Billion)Total Domestic Manufacturing (Low &Medium Value Add, $ Billion)
1.41 1.541.74
2.01
2.3
2.65
Automotive Electronics
7
Source: ISA - Frost & Sullivan
Strong Leverage for Japan Companies
CAGRTM:10.2%
TDM (overall): 14.6%TDM (Low/Med value add) : 16.1%
TDM (High value add): 9.3%
India Market : 3 Mn Cars and 16 Mn 2-wheelers.
Japan companies have very good positioning :SUZUKI, Honda, Nissan, Toyota, Kawasaki, etc.
Opportunities for :Car Entertainment ( inc. DRM ).
Mix of factory and dealer fitments.ADAS : New emerging area.
Japan approach similar to Indian.Body Electronics : Fitment to grow.
Electronics content increasing.Security is by default.
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0
2
4
6
8
10
12
2010 2011 2012 2013 2014 2015
5.936.65
7.62
8.84
10.16
11.64
0.94 1.2 1.68 2.363.36
4.591.78 1.36 0.96
0.61
0.46
0.39
Total Domestic Manufacturing (High ValueAdd, $ Billion)
2.72 2.56 2.64 2.973.82
Consumer Electronics and Appliances
8
Source: ISA - Frost & Sullivan
Strong Reputation for Japan Brands and Companies.
CAGRTM:15.0%
TDM (overall): 18.1%TDM (Low/Med value add) : 39.7%
TDM (High value add): (26.6)%
Key Demand drivers :FP TV : 12 Mn, Home Appliances: 40 MnSTB : 20 Mn , Camera’s: 6 Mn
Demography Shift :Strong Growth Potential.
Transportation costs and duties:Attractive to Make in India.
Opportunities for :STB Tuners / LNB’s.( No local content)FP TV / LED TV.Home Appliances.
4.98
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Defence , Aerospace and Internal SecurityMarket opening up. Local tie up is key enabler.
• Market Potential of 500 Mn$ per year.
• Policy initiatives as trigger : Offset , DPP, FDI ( 49% ), MSIPs, EMC’s.
• The main areas of interest are dual use technology for defense and int security.
• IESA Event : DEFTRONICS : Huge success and Interest from Global Companies.
Japan considered FRIENDLY Partner.
Potential for SME’s.High Mix- Low Volume. Specialised equipments
Tie Up /Partnership :with Local Companies presence is a enabler.
Opportunities for :
Connected N/W's of sensorsIntegrated surveillance systemsHI- Reliability tested custom micro electronics.Communication Systems. Automotive systems for defense use- fuel efficient
vehicles.Broad based sensor technology- motion detectors, thermal imagers, gas sensors etc.
100
118
137
3448
61
83
102
126
154
0
20
40
60
80
100
120
140
160
180
2006 2008 2010 2012 2014P 2016P 2018P
Defence Capital spend trend in India.INR K Cr.
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Semiconductor DesignIndia can contribute to Japan companies worldwide success
Matured and Growing Indian design ecosystem
Product customization for local needs
Re-engineering opportunities
Increasing capability of third-party service providers and Indian design companies
0.00
5.00
10.00
15.00
20.00
25.00
2013 2014 2015 2016 2017 2018
11.5 12.9 14.5 16.418.6
21.1
Semiconductor Design Market
CAGR (2011-2015): 13.3%
Opportunities for Japan Companies :Setting up Captive Design Centers.Outsourcing Design services from India for Global Markets.
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Other areas
Area Opportunity
Healthcare Focus sector of Government;Development and manufacturing of medicalelectronic devices and products has large
Renewable Energywith focus on Solar
Solar PV manufacturing and technology development
Smart Cities Allocation of $1.2 billion by Government in the current FY 2014-15; budget allocation expected to be higher next year
Electronic components PCBs, Active & Passive components (like chip resistors, capacitors, connectors)
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• Established in 2004 - The voice of the electronics, semiconductor and embedded systems industry in India with over 230+ members including domestic and international companies.
• IESA's GOAL is to Facilitate ESDM industry to create local design and High Value added manufacturing Eco System in India.
• IESA's STRATEGIC APPROACH:
– Knowledge/Business Partnership with GoI and State Governments:
• Shape and Drive implementation of policies : enable governance.
• Investment promotion, Job Creation: Economic development.
• Market Insights and trends : Industry Think Tank and Market Research/feedback
– Grow and Mentor: Talent, Innovation, Entrepreneurship
– Build Brand India: Destination for ESDM
– International Alliances: Bilateral business growth and sharing best
practices
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• IESA Vision Summit 2015 – the 10th edition of the flagship event is being held on 2nd & 3rd February 2015.
• This event will be host to policy makers, senior government officials from Government of India & states, and, over 650 delegates at senior management level from India and abroad
• Ideal platform to gather information on policy initiatives, market opportunities and business networking
• We invite Japanese companies to attend the event and leverage the opportunities it offers
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Leverage your R&D and Manufacturing spends to drive India as your destination for
Innovation Led Design …. Design Led Manufacturing strategy
Establish structured collaboration frameworks between Japan and Indian companies for development of electronics products : Make in India
Collaboration on product development and R&D – joint programs similar to MATIMOP and UKTI funded initiatives we are already running, and based on the GoI-NSF model already in place
IESA
THANK YOUFor more info contact :
IESA Confidential Copy Write 2014 15
