India Electronics & Semiconductor Association India Electronics Industry International System-C User Group Conference Noida, India April 15, 2013

IESA Vision 2020 ESDM Vision 2020 Segments Thought Leadership Brand Building International Alliances Policies Incentives Infrastructure Innovation Talent Entrepreneurship

IESA Members

ESDM Industry Overview

Electronics: Integral part of our lives Telecom Mobile Industrial Electronics Consumer Electronics IT / OA (Computers peripherals) Electronic Component s & other items Medical Electronics Automotive Electronics Solar Photovoltaic Atomic Energy Space Defence & Strategic Needs Avionics

The impetus behind the ESDM initiative Substantial Demand - The demand for electronics in India was $45 Bn in 2008-09 and is expected to reach $400 Bn by 2020 Exponential Growth - India’s electronics industry is expected to grow at 22% per year Production level electronics industry may reach with favorable policy environment Gap between current and expected domestic production, offering significant opportunities for improvement Production level electronics industry will reach with current policy environment Source: Report of sub-committee of task force set up by DIT, Government of India, stimulating ESDM industry in India (Dec 2009)

Major segments of ESDM demand in India by 2020E Segment-Wise Demand $ Bn 1 Telecom Products and Equipment 152 2 Exports 80 3 Semiconductor Design 60 4 IT Systems and Hardware 56 5 High-Tech Manufacturing 24 6 Consumer Electronics 16 7 Others 8 Electronic Components 9 Manufacturing Services

India Electronics Market (2010-2015) India Electronics Market Revenue Forecast HVA-TDM : TM 2011 8.9% 2013 7.1% 2015 6.7% High value added manufacturing contributes to only 9% of TM. Lower growth of TDM than TM suggests decline in meaningful value addition. Source: ISA- Frost & Sullivan

Electronics Market Revenue Contributors 2011 TM Revenues: $41.91 billion Incredible 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 2011 TDM Revenues: $15.27 billion Local mobile devices assembly facility to sustain TDM revenues Increasing investments in capacity additions by consumer electronics majors Source: ISA- Frost & Sullivan

Electronics Manufacturing Value Chain & Ecosystem

Government Initiatives Creating Ecosystem Semiconductor Wafer Fab Modified SIPS Electronic Manufacturing Clusters Building Demand Preferential Market Access R & D Initiatives Electronic Development Fund Aspects HR Electronics Sector Skill council Study to identify major job roles Department of Electronics & Information Technology (DeitY) Ministry of Communication & Information Technology, Government of India

Innovation Led Design ………………. Design Led Manufacturing Way forward for India E-products for India to solve unique challenges in Education, Healthcare and Energy Increase domestic value-addition and IPR in Electronics Products Grow fabless companies to drive increased domestic value-addition Build manufacturing and supply-chain eco-system to bring economies of scale Build strong start-up eco-system to drive innovation Semiconductor manufacturing is a strategic and commercial asset for India Address cost disability factors vis-à-vis competition Innovation Led Design ………………. Design Led Manufacturing

2011-2020 is Indian Electronics Industry’s Golden Decade...

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