Bangalore, Oct 8: India has emerged the fastest growing region for wireless semiconductor revenue whose global market was inching towards the 40 billion dollar mark.
India Semiconductor Association on its eperiodical ISA win wire, quoting Databeans said as production facilities continue to ramp up in the region, India was attracting Companies from Europe, United States and even China. ''Not only is lower manufacturing cost making this region desirable, but also the domestic demand for wireless products was prompting companies such as Huawei Technologies, Samsung, and Nokia to explore production opportunities here'' the report said.
Most of the demand was coming from low-cost GSM handsets, but there were growing opportunities in infrastructure and fixed wireless as well, it said.
Databeans estimated that the market for wireless semiconductors in India would reach US dollar 618 million this year. Growing at an expected compound annual growth rate of 26 per cent each year, well over the worldwide average of 15 per cent, revenue for this region is expected to reach just under US dollar two billion by 2012.
Several conditions in this region would continue to drive this growth including exponential growth in subscribers. India has a population approaching well over one billion, and while wireless telephony far outweighs land line subscribers, a majority of the population has been barely touched in terms of penetration.
Currently, India boasts around 175 million wireless subscribers, which was less than 20 percent of the total population.
Regions contributing to the global growth including China was contributing to over 17 percent share of consumption, Europe with 19 percent share as a whole, and Japan with 15 percent share.
The transition of the wireless industry into a maturing market has slowed the overall growth rate somewhat, but there are specific regions that are continuing to provide optimal results for suppliers.