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Congrats TSMC, for raising R&D spend! But, what about Indian firms?

January 18, 2011

Source: IC Insights, USA.

Source: IC Insights, USA.

Congratulations to TSMC  for making it to the top 10 R&D spenders during 2010! If you look at the IC Insights’ table (see here), you’d understand what I am referring to!

First, the table itself. It has no major surprises, barring TSMC, which again is not really a surprise. As IC Insights itself says, “The industry is increasingly dependent on the success (and hopefully not, failure) of the foundries to continue advancing their IC manufacturing capabilities.”

TSMC has jumped up from 19th to the 10th place in the latest R&D spend. IC Insights expects that TSMC’s R&D spending in 2011 will grow another 20 percent, putting its budget over $1.1 billion for the year.

Otherwise, the top 9 in the list consist of Intel, Samsung, ST, Renesas, Broadcom, Toshiba, Qualcomm, TI and AMD — all big, strong players. However, TSMC, is the only foundry in that list, at the 10th spot.

Now, all of this makes great reading! Everyone connected with the global semiconductor industry is very well aware of TSMC’s strengths and capabilities.

The more TSMC grows in stature, the more will its capabilities grow. A lot of firms have already exited the manufacturing industry, leaving that to the likes of TSMC and others, and some more are due soon.

However, I am thoroughly disappointed by some folks who touch upon India missing out on the R&D story.  More of that in a bit!

First. where is the R&D strength of India? There are firms, based outside the country, managed by Indians, who seem to look down on the country. I even received an email from a gentleman, which says: ‘Without semiconductors, India cannot gain technological advantage. Semiconductor should be funded by the defense budget.” I am appalled!

Well, we are trying, aren’t we? There are names that come to the mind — Procsys, Ittiam, SoftJin, eInfochips, MindTree, and so on! Yes, I know they aren’t exactly world beaters. But hey, they are all doing their own thing reasonably well!

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