Anyone investing in semiconductor design in India would not only be in a
better position to serve the world market, but also have access to a growing
domestic market. Explains Himanshu Singh, national sales manager, Cadence Design
Systems (India), "There is tremendous potential in the domestic market for
semiconductor related products, especially in areas such as consumer
electronics, telecommunications, wireless, defence & space, aerospace,
computer hardware/peripherals, medical systems, etc. This is because we have a
large population but a low penetration of such products. There is also an
increasing demand for products that offer greater utility and value. Another
factor contributing to this demand has been the opening up of sectors such as
telecommunications, along with increased research activity".
"We have seen more and more investments happening in India to enhance
manufacturing capacity, especially with telecom and IT equipment manufacturers.
More and more motherboards are being manufactured locally, therefore the
requirement or consumption of semiconductors will enhance in India," adds
Ajesh Kapoor, country manager, Conexant Systems.
The total semiconductor market in India, in the year 2000, reached
approximately $500 million. The global market was estimated to be worth $249
billion in 2000. Even though the global semiconductor market has hit a slowdown
this year, the growth could still be substantial.
During the past couple of years, a number of international players dominating
the global semiconductor design and manufacturing market have set up their base
in India. Besides, those who already had a well-entrenched presence re-energized
themselves to take on the new opportunities. "As a base for semiconductor
design, India can clearly become a global super-power. In fact, I would say that
it has already emerged as a key center for design excellence for major OEMs
worldwide," observes Biswadip Mitra, managing director, Texas Instruments
(India) Ltd. The Texas Instruments (India) center has been designing key digital
signal processors, ASICs, mixed signal and advanced analog products for cable
modems, digital still cameras, Internet audio players, IP telephony, wireless
handsets, etc. The TI (India) team is designing products at 0.13-micron
technology — which is said to be the state-of-the-art in the industry today.
When looking at incentives for setting up a semiconductor business in India,
investors can look beyond the usual ones (a highly trained pool of engineers and
excellent software skills) that the country is now known for. "While
availability of India’s skilled engineering population is well known, what is
becoming an emerging advantage is the increasing initiative by Indians to
seamlessly connect to their counterparts in the West. This connection with other
players is not just restricted to extended team members but to other players in
the value web as well (such as customers, suppliers, distributors, etc.). Aided
by technological advances, this trend is letting Indians leap frog to next
generation technology. Added to this is the change in the outlook of Indian
institutes and universities to work extremely closely with the industry and form
joint partnerships in several areas," points out Mitra.
The success of the Indian software industry’s service-business model can
also be exploited to build a successful semiconductor business. Already, many
new companies, primarily software companies that have ventured into the
electronic design field, are following the model.
"Exciting growth avenues are constantly opening up due to newer
technologies, such as the move towards System-on-Chip. Therefore, with the
increasing shortage of ED professionals the world over, more and more
organizations are seeking strategic partners to meet their market/customer
commitments," says Singh. He adds that there is an immense potential for
Indian ED organisations, whether established or start-ups, to be the engineering
arm of global product companies. Besides, Indian companies can have two other
major strengths: high quality infrastructure and a sound knowledge of
international business engagement models and practices.