The 2007-08 Indian Semiconductor and Embedded Design Service Industry Report says that the country's semiconductor design services industry is projected to grow at a compounded annual growth rate (CAGR) of 21.7 percent, to reach $10.96 billion by 2010, from the present level of $6 billion. The report says the industry is expected to clock a revenue of $7.3 billion by the end of 2008. The projections have been compiled by the India Semiconductor Association (ISA) and the International Data Corporation (IDC).

Last year, Chairman of the ISA had anticipated a 25 to 35 percent growth in the semiconductor industry since there was an increasing trend of a brand value for semiconductors within India, attributed mainly to MNCs looking at semiconductor-related outsourcing from India. Nevertheless the industry is expected to grow 25 to 35 percent during this year. Due to growing expertise in complex end-to-end design, strong IP development, and talent, India stands out as a preferred destination for semiconductor and embedded design, according to the report.

According to the President of the ISA, Poornima Shenoy, the Indian semiconductor design industry -- with over 200 companies -- is on a strong growth trajectory. India's growth is nearly 22 percent, which is three times the global growth rate of 7 percent. Globally people are looking Eastwards for business and collaboration, ushering in a new era in the future of the sector.

Meanwhile, Country Manager of IDC India, Kapil Dev Singh, said that the structure of the industry is changing as the proximity between third-party service providers and original equipment manufacturers (OEMs) for end-to-end product designs increases. Companies are increasingly moving up the value chain from mere project execution to end-to-end development of products.