Home > Anil Gupta, ARM, fabless, fabs, Indian semiconductor industry, ISA > What needs to be done to boost chip designing activities in India?

What needs to be done to boost chip designing activities in India?

August 5, 2009

Anil Gupta, Technovation 2010 and UK CIG Convener, India Semiconductor Association (ISA), also needs no introduction. As former managing director, ARM Embedded Technologies Pvt. Ltd, he has been a prominent figure in several industry events. Here, he presents his views on what needs to be done for the Indian semiconductor industry.

An interesting fact being brought up time and again within the industry is the requirement of a robust entrepreneurial spirit and the need for much more sources of funding for semiconductor product companies. Also, renewable energy, healthcare and security are some of the verticals where the Indian industry believes there is a lot of value to be added from the Indian market/need perspective.

Further, local products/systems design and development activity needs to be encouraged and kick-started in a big way in India, for the industry to really succeed big time!

What does Indian semicon need?
We have discussed several times in the past regarding what needs to be done with the Indian semicon industry. So, what really needs to be done, given the current slowdown? What can be done boost chip designing activities in India.

According to Anil Gupta: “The Indian story has always been a story of a lot of potential, but most often this potential is never realized.

“The software industry has done well and has gone far, perhaps, somewhat farther than the hardware or chip-design industry in India. However, you still don’t see a software product conceptualized, designed and developed in India that is worth mentioning.

“The Infosys’es and the I-Flex’es can do a phenomenal job of executing software projects for their customers, but they are all a far cry from the league of the top consulting firms that define the problem to be solved and the software solutions to be built.

“The Indian software industry is still plagued with the “revenue per head” model and is unable to grow beyond it. The Indian software companies clearly bring a significant value to their customers but this is NOT strategic value, it is merely an execution value.

“Compared with the software industry, the embedded systems industry in India is puny today. However, the opportunities are phenomenal because there is so much automation potential in so many verticals. However, once again, the lack of significant products/solutions development in India is a very big hindrance.”

From a technical expertise perspective, there is a lot of engineering talent available, but the expertise is in general quite shallow. Even in the open source space like Linux, there aren’t many noteworthy contributions to date from the Indian engineering community.

Is the Indian fab story truly dead and buried?
In the past, we have extensively discussed whether the Indian fab story was dead and buried. Do you see any change in the current situation?

Well, it is dead for now! Gupta added: “Its day will come ONLY when the economics works out in its favour. Today, it doesn’t!”

He said: “It is interesting that many point out to the success of the solar fab investments. However, it should be noted that there is no solar wafer manufacturing activity worth mentioning. Only modules are being assembled in India as there seems to be a global glut in wafer production. Thus, wafer fabs in India is a pipe dream for now since the economics doesn’t work out.”

Does India have entrepreneurs committed to product development and willing to take that risk? How can they be encouraged?

Gupta said that there are not that many who are willing to come out and take the risk, and the lack of funding is a very big handicap. The lack of prior successes that could be emulated is probably the biggest handicap.

In that case, what needs to be done in India to move up a higher level, beyond design and verification?

He said: “Clearly, a willingness to take risk, strong stomach to face failure, and strong will to learn from that failure to rise again from the ashes!”

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