Indian chip design market soars

India’s chip design market is booming, according to India.

According to the India Semiconductor Association (ISA), the country’s chip sector, which focuses mainly in VLSI design, embedded software development and board design, will grow by around 17.3 per cent year-on-year from the $7.5 billion in 2010.

This will amount to earnings of  $8.8 billion in 2011 and $10.2 billion in 2012.

In terms of the demand for the chips, consumer gadgets were found to contribute 34.43 percent to the total demand, while telecom products and wireless entities drove the market by 30.77 percent. Other items driving the demand were chips for cars, LEDs and WiMax. WiMax?

The report estimates that the Indian semiconductor design industry has employed a workforce of 160,000 in 2010. Many were employed in the embedded software sector, which is said to account for 82 percent of employment.

However, ISA president Poornima Shenoy, has said this is not enough. She told Indian reporters that more training and manpower is needed to increase the quality of work churned out and that the sector needs heavy investment from bigwigs to help boost it further.

Back in November Gartner analyst Ganesh Ramamoorthy warned that the Indian semiconductor market was falling behind China and Taiwan, due to low take up of Government initiatives and low incentives.

He said in order to boost its position the country had to team up with China in a bid to become a great power in the semiconductor manufacturing industry.

Last month Intel announced that it would invest $45 million in the country this year, and hinted it had a number of deals in its sights.