Electronics Systems Design and

Manufacturing Eco System :

High Tech Industry Association Annual Conference &

Delegation 2010 (Jerusalem 6-10 June, 2010)

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

Market Potential: the demand for Electronics

Estimated at

USD 1.75 trillion

for 2009

Projected to reach

USD 2 trillion in

2014 & 2.4 trillion

Global production of electronics

1.5

1.7

2.0

2.4

1.5

2

2.5

3

U

S

D

t

r

i

l

l

i

o

n

Overview on Global Electronics Industry

3%

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

Annual growth

rate year 2004-09

is 3%

2014 & 2.4 trillion

in 2020

4.40 times Oil,

Petrol & Minerals2.75 times

Chemical &

Plastics

2.45 times Food,

beverages

& Tobacco

2.44 times

Transportation

0

0.5

1

1.5

2004 2009 2014 2020

U

S

D

t

r

i

l

l

i

o

n

2.20 times

Electricity, Gas &

Water

India: Emerging Economy

GDP: $1.236 Trillion

GDP Growth: Around 8%

GDP Per Capita: $1030GDP 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 MWireline: 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

20

25

0

5

10

15

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 Increasing spend on IT equipment

Need for innovative products at low cost

Intellectual property in India

Domestic Demand

Consumption

reached USD 45

billion in FY09400

350

400

450

Expected domestic demand

Indian Electronics Systems Design & Mfg Industry

Demand

expected to

reach USD 400

billion in FY 20

45

125

0

50

100

150

200

250

300

350

FY09 FY14 FY20

U

S

D

b

i

l

l

i

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n

22%

Demand

expected to

reach USD 125

billion in FY 14

Electronic System Design and Manufacturing

ecosystem

VLSI design

+Embedded software

+ Reference board

design industry

High-tech manufacturing

(Water fabs, ATMPs, Solar

PV, displays, LEDs and

others)

Access to domestic

markets

Pre-competitive

research programme

Component and

accessories

ecosystem industry

Electronic system

design industry

EMS industry

Access to global

markets

Target

(USD billion) 2014 2020

Semiconductor design 20.0 58.2

High-tech manufacturing 4.0 22.6

Electronic components 2.6 3.4

Electronic Manufacturing Services 1.4 2.3

Electronic Industry: Segment-wise Projections

Electronic Manufacturing Services 1.4 2.3

Electronic systems

- 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

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 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 inIndia

Recognize and drive the opportunity for Energy Efficiency Leadership

Leverage Electronics towards Inclusive Growth for National Initiatives

Segments

AutomotiveConsumerDefense/AeroEducationHealthcareIndustrialRenewable EnergyTelecomWater Management

Problems are complex

Co-existence of modern and tradition

Innovative Entrepreneur

Its all About Team work

Thank youThank you