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High Tech Industry Association Annual Conference &

Delegation 2010 (Jerusalem 6-10 June, 2010)

Electronics Systems Design and


Manufacturing Eco System :
Next Big Leap in India

Mr. B. V. Naidu,
Advisor ISA,
Chairman & CEO-Sagitaur Ventures

Electronics, a Key Enabler for the Whole Economy

Overview on Global Electronics Industry


Market Potential: the demand for Electronics
Estimated at
USD 1.75 trillion
for 2009

Global production of electronics


3

2.0
USD trillion

Projected to reach
USD 2 trillion in
2014 & 2.4 trillion
in 2020

2.4

3%

2.5

1.7
1.5
1.5

Annual growth
rate year 2004-09
is 3%

0.5

0
2004

2009

2014

2020

Size of Global Electronics Industry vis--vis other major industries


4.40 times Oil,
Petrol & Minerals

2.75 times
Chemical &
Plastics

2.45 times Food,


beverages
& Tobacco

2.44 times
Transportation

2.20 times
Electricity, Gas &
Water

India: Emerging Economy


GDP: $1.236 Trillion
GDP Growth: Around 8%
GDP Per Capita: $1030
GDP by Sector: 20% Industry; 62.5% Services
Exports: $155 B of which $ 60 B IT& Electonics
Labour force: 465 M; 6.5 M in IT & Electronics
Demographics: 70% of Population is below 35 yr

India: Country of
Consumption
Telephone Subscribers :638 M (54% Tele Density)
Mobile: 601 M
Wireline: 37 M
Mobile Additions: 17 M/Month
Internet Users: 60 M
Broadband connections: 9 M
PC& Laptops sold: 8.5 M (Growing at 20%)

Israel: country of Innovation


25
20
15
10
5
0
Israel

Taiwan

Korea Thailand Germany USA

Thailand

India

Electronic Industry: Potential to Leapfrog India

 Growth in per capita income and corporate spend on electronics


 Government focus on infrastructure
 Increasing spend on IT equipment
 Need for innovative products at low cost
 Intellectual property in India

Indian Electronics Systems Design & Mfg Industry


Domestic Demand
Expected domestic demand

Consumption
reached USD 45
billion in FY09

450

400
400
350
300
USD billion

Demand
expected to
reach USD 125
billion in FY 14

22%

250
200

125
150

Demand
expected to
reach USD 400
billion in FY 20

100

45
50
0
FY09

FY14

FY20

Electronic System Design and Manufacturing


ecosystem
VLSI design
+Embedded software
+ Reference board
design industry

Pre-competitive
research programme

Component and
accessories
ecosystem industry

High-tech manufacturing
(Water fabs, ATMPs, Solar
PV, displays, LEDs and
others)

Electronic system
design industry

Access to domestic
markets

EMS industry

Access to global
markets

Electronic Industry: Segment-wise Projections


Target
(USD billion)

2014
20.0

2020
58.2

High-tech manufacturing

4.0

22.6

Electronic components

2.6

3.4

Electronic Manufacturing Services

1.4

2.3

- IT systems and hardware

16.7

54.4

- Telecom products and equipments

29.5

153.5

- Consumer electronics

8.1

17.8

- Others (Industrial, Automotive and others)

2.7

7.8

Exports

15.0

80.0

Total of all segments

100.0

400.0

Semiconductor design

Electronic systems

Source: Industry estimates

Electronic Industry: Potential to Leapfrog India

 Growth in per capita income and corporate spend on electronics


 Government focus on infrastructure
 Increasing spend on IT equipment
 Need for innovative products at low cost
 Intellectual property in India

Indias ESDM Growth Strategy Israels Opportunity

 Stimulate innovation in Electronic system design & manufacturing in


India

 Recognize and drive the opportunity for Energy Efficiency Leadership


 Leverage Electronics towards Inclusive Growth for National Initiatives
Segments

Automotive
Consumer
Defense/Aero
Education
Healthcare
Industrial
Renewable Energy
Telecom
Water Management

Problems are complex

Co-existence of modern and


tradition

Innovative Entrepreneur

Its all About Team work

Thank you

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