Chip firms hit the road to explore India marketAn economic mission by Korea’s key semiconductor companies is in India to scope out prospects in the expanding market.
Four companies that make semiconductor for smartphones, including SK Hynix and Silicon Mitus, visited New Delhi, the Indian capital, Monday and today. They will have meetings with Indian businesses, according to Ministry of Trade, Industry and Energy on Monday.
“The semiconductor market is growing rapidly in India and we believe it is a great opportunity for local manufacturers,” said Ahn Se-jin, a director at the Trade Ministry.
The Indian semiconductor market is expected to rise by an annual average of 26 percent from $10 billion in 2013 to $52.8 billion in 2020, and its global market share will rise from 3 percent to 13 percent during the same period, according to the Trade Ministry.
The mission, which will be led by the Trade Ministry and Korea Semiconductor Industry Association, will meet 10 Indian smartphone and parts manufacturers, including Intex and Lava, and will share their technologies and experiences with them.
“We believe their meetings and discussions will be very meaningful and helpful to each other since India is recently focusing on developing low- to mid-priced smartphones,” said Ahn at the Trade Ministry.
According to the ministry, near 40 percent of the smartphone produced globally last year, or some 100 million units, were sold in India. Samsung Electronics had a 25 percent share of the Indian mobile market in the first quarter of this year, while Apple only accounted for about 2 percent.
Meanwhile, four companies that make semiconductors for automobiles including Telechips and Nextchip will visit Mumbai, the India commercial capital, to meet with Indian automakers and auto parts manufacturers from Aug. 30 to 31.
The Trade Ministry said the Korean businessmen will meet with representatives from Tata Motors and Fiat India to discuss ways to strengthen their ties.
The Indian government currently bans registration of diesel vehicles over 2,000 cubic centimeters in order to cut pollution. The Trade Ministry said eco-friendly vehicles use more semiconductors compared to regular vehicles, making India a particularly promising market.
“Semiconductors are one of the biggest exports for Korea and the government plans to find ways to diversify export markets,” said Ahn.
BY KIM YOUNG-NAM [email@example.com]