Union budget 2013-14: Is there some hope for semiconductors?

Here are highlights of the Union budget 2013-14 presented by P. Chidambaram, union Finance minister, Government of India. Also, is there finally, some hope for the Indian semiconductor industry?

Highlights

* Doing business with India should be easy, friendly and helpful.
* Foreign investments must be encouraged.
* Accelerating growth is the main goal.
* Need to encourage FDI in consonance with economic priorities.
* To target $1 trillion in infrastructure in the 12th plan.
* There are incentives for semiconductor wafer fab manufacturing.
* There will be appropriate incentives for the semiconductors industry, including zero customs duty on plants and machineries.
* To increase allocation for science and atomic departments.
* Indian Institute of BioTechnology to be set up at Ranchi.
* Non-conventional wind energy sector needs help.
* Will encourage cities to take up waste-energy projects through PPPs.
* Plan being developed for Chennai-Bangalore industrial corridor.
* Preparatory work started for Bengalooru-Mumbai Industrial Corridor.
* To launch two new industrial cities in Gujarat and Maharashtra.
* Propose to continue with the Technology Upgradation funds scheme for the textile sector.
* India’s first women’s public sector bank to be set up.
* Woman’s bank license to be in place by October, 2013.
* All PSU banks branches to have ATMs by March, 2014.
* Zero customs duty for electrical plants and machinery proposed.
* Higher customs duty on set-top boxes.
* To provide more than Rs 4200 crore for medical studies.
* To allocate Rs 1106 crore for alternative medicine industry.
* To allocate 100 crores to AMU, BHU, TISS-Guwahati and INTACH.
* Government to set up National Institute of Sports Coaches in Patiala.
* To expand private FM radio to 294 cities.
* To auction 839 licenses for FM network to cover all India.
* Government to construct power transmission system from Srinagar to Leh at the cost of Rs 1,840 crore, Rs 226 crore provided in current budget.
* Mobile phones priced more than Rs. 2,000 will see duty raised by 6 percent.
* Extend tax benefit to electrical vehicles.
* A company investing Rs 100 crore or more in plant and machinery in April 1, 2013 to March 31, 2015 will be allowed 15 percent investment deduction allowance apart from depreciation.
* SEBI to simplify KYC norms governing foreign investors.
* SEBI will simplify procedures for entry of foreign portfolio investors to invest in India.
* Higher outlay on waste management.
* Government to monitor cost of doing business in India.
* Zero customs duty proposed for electrical plants and machinery.
* Proposal to provide Rs. 800 crore for the Ministry of New & Renewable Energy for generation-based incentive for wind energy projects as the non-conventional wind energy sector deserves incentives.
* Government will provide low interest bearing funds from the National Clean Energy Fund (NCEF) to IREDA to on-lend to viable renewable energy projects. The scheme will have a life span of five years.
* Proposal to set apart Rs. 2,000 crore and asked the National Innovation Council to formulate a scheme for the management and application of the fund.

Coming to semiconductors, the world today is discussing the viability of 450mm fabs. I am well aware that Malcolm Penn has been pushing for 450mm fabs across Europe. I believe that one such fab will cost in the excess of $25 billion, if not more. So, who will invest that kind of money in India? Do we have clean water and 24-hour electricity supply in any state that’s required for such a fab? What will this so-called 450mm fab manufacture? Does the fab have a blueprint in place? Well, have we even addressed any of these questions?

What should India do to boost semiconductors?

I’ve already written a lot on the Indian semiconductor industry. Now, there’s nothing new to say. Even then, I am literally coaxed to say what I think the Indian semiconductor industry should do! As though the industry will listen to a nobody like me! 

First, the industry should stop wasting time running here and there, and focus on getting the job done! Semiconductors isn’t a new area, and has been in existence even before the India Semiconductor Association (ISA) came into being in 2005.

There have been talks (ongoing since about 2006) about building fabs in India. Well, where are they? Back in 2010, I wrote a post titled Indian industry proposes to extend deadline of India’s semicon policy up to March 2015! One sincerely hopes that has actually happened!

India could consider building 150/180/200mm fabs that tackle local problems via indigenous applications. And, there are scores of local issues that need to be dealt with! I’ve said before, and am repeating myself at the sake of repetition — the semiconductor industry is NOT the IT industry, but it appears to being treated like one, especially in India!

Indian companies could consider developing firms in the assembly testing, verification and packaging (ATMP) space. Very little has happened so far and a lot more needs to be done. There could be some attempts to attract and invite companies in areas such as RFID to address local problems and develop local applications, unless India has given up on RFIDs.

I really have very little idea whether there is any interest in India to pursue global companies in PDP, OLED/LED space for setting up manufacturing units. Although, I can safely bet that if it is the Chinese companies that Indian firms are setting themselves up to take on, we would have a very long way to go!

India also needs to kindly forget about the ‘states race’! It has not helped anyone so far, nor will it help anyone in future!! In the end, we are all looking to develop India, aren’t we?

I didn’t even know that there is so much time required for setting up a pan-industry panel that will determine the top five products that are important for India! Seriously!! Anyone, who resides in India, should be able to tell you that the key sectors in India are automotive, consumer, industrial, medical and telecom. Agree that automotive and certain medical electronics areas can be expensive. Well, there are still three areas to pursue!

If anyone had simply bothered to send me an email or even call me, I’d have very happily told them about the top five product lines that are important for India and much more!   There is a pressing need to develop a robust Indian semiconductor industry, led by local companies! Many would agree that all of this seems very easy to say, but difficult to manage! 

Outlook for electronics and semiconductors in 2013

Happy new year to everyone! Here is an outlook for the electronics and semiconductors sectors in 2013, provided by Jaswinder Ahuja, corporate VP and MD, Cadence Design Systems (India) Pvt Ltd. (Thanks a lot, Pallavi).

First, the past year, 2012, in review.

Jaswinder Ahuja.

Globally, 2012 has been a challenging year for the semiconductor industry with the economic slump in Europe and the US. However, the long term outlook remains positive, with Gartner reporting that the growth in the electronics and semiconductor industries will outpace world GDP growth till 2016.

In India, the ambiguity around the telecom market, traditionally the biggest consumer of semiconductor equipment, was the main handicap to growth. On the positive side, the passing of the National Policy on Electronics (NPE) in 2012 promises a much-needed fillip to the electronics ecosystem. In 2013 we expect to see a positive impact in terms of home-grown electronics thanks to the provisions of the Policy.

Worldwide technology trends in 2013
User experience is the driving force behind many of the semiconductor design trends that we will see in 2013 and beyond. Consumers are demanding devices on which games, music, cameras, internet, and other apps all run simultaneously and seamlessly. As a result, mobility, application-driven design, video, cloud and security, all of which enable an enhanced user experience, are the drivers of the electronics and semiconductor world today.

Mobility is the single biggest driver for the semiconductor industry. The pervasiveness of mobility does not only affect the telecommunications industry, but also entertainment, home electronics, automotive and medical electronics.

For example, cutting edge mobile solutions in the healthcare field include devices that can monitor blood pressure and blood sugar levels remotely, and then transmit the readings to the physician for diagnosis and treatment; in the automotive sector, in-vehicle infotainment is expected to be the next big thing and end-consumers can look forward to real-time traffic reports, weather information, and entertainment options from next-generation cars.

Mobility has fundamentally altered how we produce and consume information. In the future, we can expect that devices will go one step further and actually interact intelligently with the user – we see the first steps of that with Apple’s Siri software.

Mobility has also created a completely new market for applications that enable a more interactive and satisfying user experience. It is via applications that system companies differentiate themselves and stand apart from the competition. The need to have applications on all kinds of devices is posing unique challenges to the semiconductor and EDA companies.

Whereas traditionally the hardware (silicon) was built first and then the software was added later, now developing the software and designing the hardware are becoming a parallel process. This gives rise to new EDA technologies that enable early software development using software models of system hardware long before silicon is ready. We will see this new way of designing continue to be a challenge going into 2013.

Per reports from Cisco, video will soon drive more than 90 percent of all global traffic on the Internet. As more and more entertainment and collaboration tools are launched, bandwidth-hungry video traffic will drive growth both in the end consumer market (mobile platforms) and the enterprise space (networking industry).

The cloud is closely intertwined with the growth in mobility – it is the cloud of network servers and backbone equipment that deliver the content and value to all mobile devices. For every 600 smart phones and every 120 tablets, one dedicated server is needed. With the demand for mobiles showing accelerated growth, the need for cloud computing technologies will be another key driver for the semiconductor industry.

Security underpins our information age. The vast amount of data residing in mobile platforms and cloud architectures is extremely vulnerable. As we move into 2013, we foresee a sharper focus on securing data and critical infrastructure from theft and hacker attacks.

Round-up 2012: Best of electronics, semiconductors and solar

Friends, here is the round-up of 2012, where the best of electronics, semiconductors and solar PV are presented. Best wishes for a very happy and prosperous new year!

Also, a word on the horrendous Delhi rape that has shaken up India. I am ashamed to be a man and a part of India’s society. My family and I are extremely sorry that the brave girl is no more! May her soul rest in peace. May God deliver justice, and quickly!

DECEMBER 2012
Opportunities in turbulent PV equipment market

Global semiconductor industry outlook 2013: Jaswinder Ahuja, Cadence

Next wave of design challenges, and future growth of EDA: Dr. Wally Rhines

Global medical image sensors market to grow 64 percent by 2017

Status of power semiconductor devices industry

NOVEMBER 2012
Global solar PV industry to remain under pressure in 2013!

Dr. Wally Rhines on global semiconductor industry outlook 2013

Focus on monolithic 3D-ICs paradigm shift for semicon industry

Xilinx announces 20nm portfolio strategy

Elliptic intros world’s first commercial touchless gesturing technology!

Global semiconductor industry outlook 2013: Analog Devices

IMEC’s 450mm R&D initiative for nanoelectronics ecosystem

OCTOBER 2012
III-V high mobility semiconductors for advanced CMOS apps

Yet another electronics policy for India?

IEF 2012: Turning recession into opportunity!

Global semicon sales to drop 1.7 percent in 2012?

Virtual prototyping ready for masses

MEMS to be $21 billion market by 2017: Yole

TSMC on 450mm transition: Lithography key!

SEPTEMBER 2012
Cadence Allegro 16.6 accelerates timing closure

Dr. Wally Rhines on global EDA industry

Solarcon India 2012: Solar industry in third wave!

AUGUST 2012
Apple wins big vs. Samsung in patent war!

Can being fabless and M-SIPS take India to top?

JULY 2012
Is Europe ready for 450mm fabs?

APRIL 2012
Xilinx intros Vivado Design Suite

MARCH 2012
Cadence releases latest Encounter RTL-to-GDSII flow

WLCSP market and industrial trends

FEBRUARY 2012
Top 10 semiconductor growth drivers: Intersil

Ingredients for successful fabless Indian semiconductor industry: Dr. Wally Rhines

Tariffs will slow growth in domestic demand for PV systems: The Brattle Group

Wireless leads in global semicon spends!

JANUARY 2012
India to allow imports of low-priced Chinese solar cells? Or, is it beaten?

III-V high mobility semiconductors for advanced CMOS apps

Clement Merckling, IMEC, Belgium, presented on the epitaxial growth and in-situ passivation requirements for III-V high mobility semiconductors for advanced CMOS applications at the Semicon Europa in Dresden, Germany.

The motivations for III-V MOS transistors include higher electron carrier mobility (@ low-field), more efficient source injection, smaller energy bandgap, VDD scaling, band engineering capabilities, lower temperature processing, high-K gate first process possible and 3D compatible architecture.

IMEC III-V EPI.

The International Technology Roadmap for Semiconductors (ITRS) believes in Ge and III-V. IMEC epi + in-situ oxide ‘tool park’ involves MBE (molecular beam epitaxy) and MOVPE (metalorganic vapour phase epitaxy) III-V growth techniques. The III-V EPI is clustered with in-situ oxide capabilities.

The AIXTRON Crius 300mm looks at III-V selective epitaxial growth (III-As and III-P). The AMAT/RIBER III-V logic cluster 300mm looks at the III-V selective epitaxial growth (III-As and III-P), in-situ surface analysis, handled by RIBER ISA 300, and oxide (ALD and MBE) chambers in-situ. The RIBER MBE 49 cluster 200mm looks at the III-V solid source epitaxy (III-As and III-Sb) oxide chamber in-situ.

Main issues and challenges
Main issues for III-V integration include III-V integration on Si platform. There are all sorts of crystalline defects. Next, gate stack formation on MOS. It is much more difficult to passivate interfaces. Smaller bandgap, means, an increased Ioff due to band-to-band-tunneling.

Challenges with III-V heteroepitaxy on Si include Lattice mismatch, anti-phase boundaries (APB), mismatch stress relaxation and related defects such as dislocations at interface, and extended defects (threading arms, SFs). There are other defects caused at isolation interfaces, such as twins, stacking faults, facets, etc. Finally, there is interdiffusion at heterogeneous interfaces.

However, it is possible to achieve high quality heteroepitaxy by direct epitaxy using metamorphic buffer and defect confinement and wafers bonding. Strain relaxed buffer (SRB) is among the options for III-V materials integration at imec.

There can be InGaAs metamorphic buffer, with the MBE growth of low defect density and device quality III-V heterostructure using a suitable metamorphic buffer. Or, there can be III-Sb on Si by SS-MBE, that provides a route to relax III-V.

Defect confinement is possible via ‘necking effect’. The selective area growth (SAG) of III-V compounds via MOVPE (or CBE ?) means the defects are trapped at trench edges. The other way is dislocation trapping in narrow STI trenches for aspect ratio >2. There is low defect density material in the upper part of the trench.

Elimination of APBs for on-axis Si (001), Si recess engineering, is possible either via rounded-Ge surface or V-grooved surface. In the rounded-Ge surface, step creation is done by surface engineering of a Ge seed layer. Double steps on a Ge surface are more stable and easy to form with a lower thermal budget than on Si.

In V-grooved surface, (111) surface is obtained either by KOH or TMAH wet etching. Growth inside a pre-defined Si {111} enclosure promote initial III-V nucleation uniformity.

The ‘necking effect’ approach presents its own challenges. One, perpendicular view, where there is efficient defect necking effect with side wall and parallel view, which allows viewing high defect density.

Round-up 2011: Best of semiconductors

Right folks! This is the last post for 2011!! Here’s a look at the good, bad and ugly, that the year had to offer in semiconductors. Enjoy! Happy new year, everyone!

Dec. 2011
Round-up 2011: Best of semiconductors

Video and mobility drivers for global semicon in 2012

Future materials and devices for power electronics

SuVolta solving power problem in SoCs across multiple CMOS process nodes

Global semiconductor industry keeps consolidating; 28nm will be stable: Dr. Wally Rhines

Synopsys acquires Magma! And, another one bites the dust!!

Nov. 2011
Lattice intros low power ECP4 FPGAs

Global semicon sales forecast at $329.4 billion for 2012! – What about this one? A well-read piece!

MEMS Executive Congress 2011 round-up

Global semiconductor market will be $313 billion in 2012: SSIA – It seems 2012 will pan out this way!

MEMS market overview: IHS iSuppli

NXP licenses Broadcom’s BroadR-Reach Ethernet technology for in-vehicle networking

MEMS devices driving healthcare apps!

Updated global semicon sales forecast 2011′s estimate falls $2.74 billion

Oct. 2011
DIT outlines initiatives to promote ESDM in India

Game changers: New paradigms for future of electronic product realization

Designing systems to thrive in disruptive trends!

Realizing EDA360: Charlie Huang, Cadence – Focus on EDA360!

What’s happening with ISA and Indian semicon industry? – Defining piece!

Altera launches SoC FPGAs

Emerging piezoMEMS apps and ion beam etch solutions for next gen MEMS and sensors

ESDM all over again? When will Indian semicon and electronics industries learn??

Semiconductor supply chain dynamics: Future Horizons @ IEF2011

Sep. 2011
India has restricted itself to only semicon design and R&D!

ST launches STM32 F4 series of MCUs

ARM connecting the world!

Renesas enhancing localization of products in India!

Magma announces Silicon One strategy

Need to work toward sustainable future: imec

Aug. 2011
Freescale launches first ‘base-station-on-chip’ products!

Semicon industry at inflection point of innovation: Rich Beyer

NXP launches CAN partial networking solution for automotives

Fabless fables and all that! Is India listening?

What’s happening with global semicon industry?

2011 global semicon sales growth likely to trend downward for rest of year?

Round-up 2010: Best of semiconductors

Right then, folks! This is my last post for 2010, on my favorite topic – semiconductors. If 2009 was one of the worst, if not, the worst year ever for semiconductors, 2010 seems to be the best year for this industry, what with the analyst community forecasting that the global semicon industry will surpass the $300 billion mark for the first time in its history!

Well, here’s a look at the good, the bad and the ugly, if available for otherwise what has been an excellent year, which is in its last hours, for semiconductors. Presenting a list of posts on semiconductors that mattered in 2010.

Top semiconductor and EDA trends to watch out for in 2010!

Delivering 10X design improvements: Dr. Walden C. Rhines, Mentor Graphics @ VLSID 2010

Future research directions in EDA: Dr. Prith Banerjee @ VLSID 2010 — This was quite an entertaining presentation!

Global semicon industry on rapid recovery curve: Dr. Wally Rhines

Indian semicon industry: Time for paradigm shift! — When will that shift actually happen?

Qualcomm, AMD head top 25 fabless IC suppliers for 2009; Taiwan firms finish strong!

TSMC leads 2009 foundry rankings; GlobalFoundries top challenger!

ISA Vision Summit 2010: Saankhya Labs, Cosmic Circuits are Indian start-ups to watch at Technovation 2010!

ISA Vision Summit 2010: Karnataka Semicon Policy 2010 unveiled; great opportunity for India to show we mean business! — So far, the Karnataka semicon policy has flattered to deceive! I’m not surprised, though!

Dongbu HiTek comes India calling! Raises hopes for foundry services!!

Indian electronics and semiconductor industries: Time to answer tough questions and find solutions — Reminds me of the popular song from U2 titled — “I still haven’t found what I’m looking for”!

What should the Indian semicon/electronics industry do now? — Seriously, easy to say, difficult to manage (ESDM)!  

Compound semiconductors substrates market to reach $1bn by 2010

Thanks largely to Yole Developpement’s David Jourdan, in Lyon, France, it was great to be a part of Yole’s latest seminar on the compound semiconductors substrates market.

According to Yole, in 2010, the compound semiconductors substrates market will reach a size of $1 billion, with only 1.14 percent of the overall semicon processed surface.

Presenting the general conclusions and perspectives, Dr Philippe Roussel, project manager Compound Semiconductors, Yole said that compound materials are now well established in the semiconductor world. Their intrinsic properties such as wide bandgap, thermal conductivity, voltage breakdown capability, electronic mobility, etc., are offering key added value that cannot be proposed by silicon.

However, silicon is still in the race where CS devices are installed, such as:
* high frequency silicon transistors above 20 GHz and over are under development in many places.
* blue/white LED for which people are trying to grow GaN epilayers on large diameter silicon wafers (6 inch and more).
* power electronics — using technologies such as super junction and/or trench gate approach, silicon is able to offer very low power loss characteristics, always benefitting from large diameter possibility.

He added that the only way to make CS materials a success story for a long time and to secure attractive revenues is to increase the wafer size while decreasing price.

Further, new CS materials are now in pre-production, offering enhanced performance in different ways. Some of these are:

* Al nitride (AlN): It offers a very interesting capability for manufacturing UV LED sources. The first two-inch single crystal wafers are now availabe in the market and the teechnology is improving on a regular basis.
* Zinc oxide (ZnO): Native or epitaxial ZnO offers a perfect lattice matching to grow the GaN based blue or white LEDs. Small diameter wafers are already available and wider epiwafers are under consideration by LED makers.
* Diamond: It is also under investigation. So far, only small pieces of single crystal diamonds have been produced. However, polycrystal diamond is fully available and first demonstrators of RF or power devices have been exhibited.

Round-up 2009: Best of semiconductors

Right folks! We’ve now come down to the last day of what has been one of the worst years, or the worst year ever, in the history of the global semiconductor industry!

After a very tough first half of 2009, things did start looking up in the second half, and that trend has continued right up to the end of the year. It is a sincere wish that this trend continues well into 2010 and 2011, thereby allowing the industry to scale great heights again.

Presenting a list of leading semiconductor industry related posts that mattered in 2009. Here you go!

SEMICONDUCTORS

Reviewing global/Indian semicon industry in 2008 — top posts

Consumer MEMS shine amid gloom: iSuppli

Global semi to dip by 28pc in 2009; Indian semi to grow at 13.4pc by 2010! Don’t get carried away!!

What the semiconductor industry should do in 2009!

Indian semiconductor market to reach $7.59bn by 2010!

Global semiconductor industry could well see revival in 2010?

Can the Indian semicon industry dream big? (And even buy Qimonda?)

Indian silicon wafer fab story seems dead and buried! Should we revive it? — A topic everyone loves to talk about, but do very little!

ISA Vision Summit 2009 lacks the punch!

What India now offers to global semicon industry! — Need to look beyond embedded and design services! Top read!!

ISA Vision Summit 2009: Indian design influence, ideas to volume

Definite need for rethink on India’s fab strategy!

Time for Indian semicon to step up! Yes or No?

Infineon on India’s e-passport and semicon industry

Indian chip industry dead? You’ve got to be kidding me!

How semicon firms can achieve high performance by simplifying business!

How semicon firms can achieve high performance — Part II

ISA’s BV Naidu on India’s way forward in semiconductors

Clearly, mixed signals in OEM semiconductor design activities!

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

Freescale’s Rich Beyer on semicon and industry trends

Cypress on Indian semicon industry trends; launches PSoC 3 and PSoC 5 architectures

Chip market outlook: Back to normal abnormality? — Malcolm Penn @ IEF2009, Geneva

Excerpts from Future Horizons’ International Electronics Forum 2009 @ Geneva

Excerpts from Future Horizons’ IEF 2009 — II

Strong semicon industry recovery likely in 2010! — The first signs of recovery for an industry in trouble!

What does it take for students to be (semiconductor) industry-ready! — a top read article, especially for students!

Building pillars of India’s tech infrastructure: Dr. Bobby Mitra, TI India

Top 20 semicon suppliers of 2009! — One of the most read articles of the year!

Future Horizons signs me as its India affiliate! — I can’t wait to do events, research reports etc. in India!

2009 ending with lot of positives for global semiconductor industry

Semicon update Dec. ‘09: Q4’s off to a great start; is ‘plan B’ in your back pocket?

Nov. 09 update: -10 percent growth in 2009, +22 percent minimum for 2010, says Future Horizons

My dear friends, it has been an absolute pleasure bringing to you the trials and triumphs of the global and Indian semiconductor industry this year. Hope to carry this forward in 2010 and beyond.

In case I’ve missed out certain posts, do point out those. A list of posts related to EDA and embedded systems are presented elsewhere on this blog. Also, it is not possible for me to select the top 10 articles for the year. If anyone of you can, I’d be very delighted.

My best wishes to you, your families and loved ones for a happy and prosperous 2010. Take care, God bless, and see you all very soon next year!