The Indian semiconductor sector comprises pre-fabrication, fabrication and post-fabrication verticals. In 2007, the Indian Semiconductor Association (ISA)-Frost and Sullivan estimated the Indian semiconductor market to be worth US$ 4.56 billion. This figure rose to US$ 5.9 billion for 2008 at a compound annual growth rate (CAGR) of 13.4 per cent and, further on, to US$ 7.59 billion for 2010.

The total available market is expected to rise from US$ 2.53 billion in 2008 to US$ 3.24 billion in 2010 at a CAGR of 13.1 per cent. Further, the share of Indian semiconductor sector in global semiconductor market expected to Increase to 1.6 per cent by 2009. The growing demand for IT hardware, office automation products and consumer electronics products such as mobile phones and automotive products are driving the demand for semiconductors in India.

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