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SEMICONDUCTOR DESIGN: Yes, India Can Do It

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VoicenData Bureau
New Update

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".

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"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.

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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.

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