Indian semiconductor and embedded design services market is expected to grow at a compound rate of 22.7 per cent to $10.96 billion by 2010, according to a study by India Semiconductor Association (ISA) and IDC (India) Pvt Ltd.

The study titled “India semiconductor and embedded design service industry (2007-10): Market, technology and ecosystem analysis” pointed out that the total workforce in this industry will also grow to 2.18 lakh by 2010 from 1.30 lakh in 2007. The total design market in India for 2007 was estimated at $6 billion and 81 per cent of the revenues were in the area of embedded software followed by VLSI design (13 per cent) and hardware design (six per cent).

Segmentwise, while VLSI design services market is expected to reach at $1,380 million by 2010 from $766.2 million in 2007, embedded software market is poised to reach at $8,912 million by 2010 from $4.9 billion in 2007. Total hardware design services market is also expected to reach at $680 million by 2010 from $386.1 million in 2007.

Briefing reporters IDC (I) Ltd Country Manager Kapil Dev Singh said: “the domestic semiconductor and embedded design services industry is all set to enter a new phase — Ver 2.0, following on from where Ver 1.0 left off. To achieve this next phase of growth industry need to focus on availability of quality manpower, higher productivity and more value creation.”

The Indian semiconductor and embedded design services market is expected to cross $7.37 billion in 2007, he said adding that: “The industry will witness increasing proximity between the third party services providers and OEMs for end-to-ned product design. This will lead to fabs aligning themselves with the service providers leading to the creation of ‘Virtual Fabs’.”