Recently, the India Semiconductor Association (ISA) signed an MoU with East of England International (EOEI) to promote and develop the semiconductor industries in their respective domains.
On August 31st, which is early next week, the ISA and the UK-TI will be signing an MoU to extend this relationship further.
My colleague, Usha Prasad and I met up with Chandrika Anil, Manager – Membership Services, ISA, to hear more about the MoU.
Elaborating on how the MoU between the ISA and UK Trade & Investment (UK-TI) is going to help in encouragement and development of Global Value Chain Partnerships, Chandrika said that the ISA and the UK-TI share a mutual interest to promote and develop the sector semiconductor industries in their respective domains. The MoU between ISA and UK-TI entails promotion of the concept of Global Value Chain Partnerships.
As part of the MoU, the two organisations have agreed that:
- Global Value Chain Partnerships are of mutual benefit in the ongoing development of the Indian and UK semiconductor industries and the relationship between them.
- ISA and UK-TI will co-operate with each other in the following activities to encourage and develop Global Value Chain. Partnerships between Indian and UK semiconductor firms. This allows for:
- Promoting the concept of Global Value Chain Partnerships amongst the Indian and UK semiconductor industries in the most appropriate manner
- This may include website, newsletters, conferences and direct discussion with firms.
- Identifying, through ongoing research and discussion, areas of potential business opportunity which could be addressed by Indian and UK firms working together
- These areas could form a set of themes around which ISA and UK-TI may wish to focus on seminars and other activities to raise awareness, understanding and interest.
- Encouraging firms in the two industries to register (free of charge) their interest in exploring relevant partnerships and business opportunities in the identified areas
- This would involve inviting firms to provide information about their interests and capabilities, periodically reviewing identified opportunities which may be relevant
- Facilitating meetings between firms and groups of firms to take forward discussions with a view to formation of Global Value Chain Partnerships
The MOU will create a synergy between India and the UK in the areas of design, device and applications.
You can read more on ISA’s website. Thanks for the interaction, Chandrika, and well done, Usha!
Bangalore based AqTronics Technologies Pvt Ltd is an innovator in the distribution and marketing of semiconductors, passives, interconnects, electro-mechanical, IT and enterprise products. It is a focused demand creation distributor for India markets.
He said: “We would like to bring the latest technologies to India and provide an exemplary standard of quality service through superior product marketing, outstanding technical solution support, in-depth inventory, professional selling procedures and the most reliable operational systems in distribution.”
AqTronics to distribute Mouser’s components in India
AqTronics recently entered into an agreement with Mouser Electronics Inc., a leading global distributor of electronic components.
Under the agreement, AqTronics will distribute Mouser’s electronics components in India. All of Mouser’s components are available through AqTronics through INR (Indian Rupees) and USD (US dollars) with Modvat refund.
Mouser Electronics is one of the fastest growing global catalog and web based distributors in the electronics industry. The company is focused on the rapid introduction of newest products, leading edge technologies, and world class customer service.
It is specially focused on design engineers and buyers demanding small to medium quantities of the latest products. Hence, Mouser provides customer-focused distribution.
Mouser is also an authorized distributor for over 390 industry leading manufacturers. With a new catalog every six months, it ensures that the newest products are added and the end-of-life products removed from the print catalog. Mouser’s website features over a million products for easy purchase in USD, INR and with Modvat refund through AqTronics.
USP of AqTronics-Mouser relationship
Ranga Prasad says: “AqTronics’ focus is demand creation distribution. This calls for supporting customers on the complete product development life cycle (PDLC).”
Mouser Electronics will help AqTronics will support customers for — functional engineering, embedded development tool selection, bread board to engineering BOM, prototyping with small quantities, and NPI or pilot production – broken pack (Non MoQ, non MoV).
Components distribution and India advantage
Estimating the global components distribution market, according to Mouser, the semiconductor markets globally are estimated to be $1.2 trillion.
The Indian market share in percentage terms is said to be lesser than 2 percent of the world TAM (total available market). According to the companies, this calls for tremendous growth opportunities for components distribution in the Indian market.
Naturally, the India advantage comes into play!
India, with the second largest population in the world, and a huge talent pool of engineers, is a promising market. Especially, in the R&D activities, there are a lot of technology companies in major cities such as Bangalore, Chennai, etc.
Mouser will focus and continue to put an effort into developing this market. Mouser is very excited about the growth in the Indian market and the opportunity to bring its world class product line card to the region.
AqTronics’ strategies to tap Indian market with Mouser
AqTronics and Mouser have aggressive plans for the Indian market.
According to Ranga Prasad: “Mouser will re-inforce resources in India by increasing its presence through partners, e-marketing through the Internet, e-magazines and appropriate search engines. Mouser’s focus is on bringing the ‘newest parts for the newest designs’, and ensuring that the engineering community is best served with all of the latest parts.
“To support this, AqTronics, and also Mouser, will update their website daily with new parts and components from over 390 major manufacturers. There will also also be a fully updated catalog in India every six months.”
Warehouse in pipeline
Entering India in the electronic components space also calls for having a dedicated warehouse at some point of time. Since customer support is one of Mouser’s strength, the company is serious in its approach toward India, and will provide its best services for after sales support.
Putting appropriate resource to support customers is Mouser’s belief. Therefore, it will not neglect the needs of adding a warehouse wherever and whenever required. It also partners with FEDEX for international operations and has a three-day shipping from Texas, USA, to its customer base in the region.
Companies represented by AqTronics
AqTronics represents the following companies:
Mouser Electronics: Catalogue sales distribution.
Digi International: Leaders in device networking and M2M.
SST: Serial/parallel Flash, NAN drive (solid-state drive), 8051 microcontrollers.
ISSI: Synchronous SRAM, DDR-II, asynchronous SRAM, DRAM, automotive and industrial versions.
Fujistu: Thermal printers, interface boards, touch panels, Bluetooth modules.
Upek: Capacitive type -– large area, swipe sensors, controllers, RSA tokens.
Ember: Zigbee chipsets.
ORing: Ethernet switches.
Sarantel: GPS Geo Helix antennae.
iWatt: AC/DC ICs, DC/DC ICs, Advance power solutions
Tysso: Magnetic swipe readers, keyboards, bar code readers/scanners, POS systems.
Everlight: LED lighting solutions.
MPS: Monolithic power systems — regulators, low drop regulators, battery, chargers/protection, transformer based power supplies.
Narda Batteries: Batteries for telecom, UPS, power, solar energy, emergency lighting and power systems, mobile communications, radio, railways.
Taking on competition
India is also home to leading electronic components and distributors, such as Farnell. Contending with such stiff competition is key on the agenda.
Ranga Prasad adds: “In addition to the strategies mentioned earlier, we would like to re-inforce and strengthen our relationships with the universities’ research teams, and ensure that the engineers are aware of Mouser’s services and support when they are still in the universities.
“Mouser’s focus is driven by ensuring that the latest components are always available. Its stock profile is focused on electronic components, and not on other peripheral ranges.”
The Bangalore, India, arm of Text 100, a well known PR firm, sent me a presentation this Friday, which is about a global bloggers survey! This survey received inputs from 449 technology, news and lifestyle bloggers across 21 countries.
On receiving it, I wondered why I was never part of this list? This puzzled me a lot since the Text 100 India team is always speaking with me at least once a week for something or the other! Perhaps, I am a blogger from India and not so important! Never mind! The folks at Text 100 India will always remain my good friends!
The survey results however, are quite predictable and hardly surprising! There’s nothing new in it and that’s disappointing! For those interested, the results are:
1. Growing influence of bloggers — Corporations are increasingly recognising the influence of bloggers.
As though this point needed any acknowledgement or a survey! TechCrunch, Engadget, etc., don’t need any introduction! There are several other bloggers of repute and their words definitely count!
2. Social media releases — Corporate news releases are out: Social Media Releases will experience far greater usage!
I wonder if the second point is true! Given the mountain of releases I receive, I don’t really know what to make it! To accommodate those, I spun off several other blogs. Bear in mind that PR companies think nothing of this effort! If you talk about charging for hosting releases, they shy away! In fact, I was most amused when a PR firm recently called me up to inquire about my blog’s traffic, saying it needed that figure for ‘internal usage.’ Wonder what that means!!
3. RSS is key — If your company is not making their information available via RSS feeds, you are missing opportunities.
Again, this one seems a bit like — too much, too late! RSS has been around for quite a while now! If people don’t bother to use them suitably, who is to blame? Whether PR folks use RSS at all is something I won’t know.
4. Part-time bloggers: The majority of bloggers are still part-timers — adjust your strategies accordingly!
Quite accurate and already known! Only the very brave give up full-time jobs to blog, with or without any financial or other support!!
5. Cultural differences — Despite being global, there are still cultural differences to be respected.
Even the rest of the findings are ordinary. For instance, computers, technology and the Internet are the subjects most blogged by surveyed bloggers. The preferred content is news and reviews of new products, opinionated comments on their blogs, and interviews with key people. Corporate news announcements are of least interest.
What the survey doesn’t mention!
What the survey hasn’t mentioned or spoken about is how can PR firms help bloggers make some financial gains out of blogging! Nor is there any mention of any such methods that could be adopted by bloggers and PR firms.
The absence of this critical piece of information renders this survey ordinary! If it were a part of the survey, bloggers would have really appreciated the effort. Sadly, it completely misses or overlooks this extremely critical point!
Several bloggers, including yours truly, offer a variety of services, to make some financial gains. Even this aspect is completely missing from the survey!
It would have been good to cover this aspect as it would educate everyone about the kind of services offered by bloggers. In fact, it would inspire more people to take up blogging as a career — another aspect given a complete miss by the survey!
Need to answer basic questions
There are basic questions that need to be answered, such as:
1. Why should anyone choose blogging as a career?
2. How can he or she make money by blogging?
3. What are the services he or she can offer via the blog?
4. What kinds of services are being made available by bloggers?
5. Should bloggers get advertising? What types? To what extent and duration?
6. What would be the advertising charges? Would it be different from print media or the Web portals?
7. How can PR firms work better with bloggers?
8. How can PR firms develop a win-win situation and help bloggers gain financially?
9. Should bloggers charge a fee for queries received from elsewhere?
10. How good or popular are sponsored posts? Are PR firms doing anything to boost this and help bloggers?
11. There are so many blogs (including mine) on Blogger and WordPress. Is it still a blog or a web site — especially when PR firms look for online coverage?
12. Which blogging platform is more preferable?
Am sure there are several bloggers out there with a whole lot of other questions I may have missed!
One other point carried in the survey is a comment from a blogger in Ireland, which says: “Press releases don’t work for bloggers, we are not journalists, we don’t need to copy and paste nonsense we get sent. Plus, the big issue with coverage on a blog is being first. If you are sending the same release to the press, why would I want to blog about it? I am not unique then and am the same as a paper.”
The headline — Don’t bombard bloggers with press releases — could actually work very well in favour of the PR companies IF the PR folks worked out various strategies and ways of helping bloggers. They seriously need strategies, where currently, none seem to exist!
On the other hand, this survey also tells me — perhaps, I should close down all of my other blogs — which I recently started to host all of those press releases that I get bombarded with — a point mentioned by some other well wishers as well!
What do you think friends? Should I?
I was recently chatting with a friend at LSI, who asked my opinion on the Indian semiconductor industry. Interestingly, in one of my groups on LinkedIn, a member has started a discussion on ‘whether it is ripe for India to get a silicon IC fab’!
Complete contrast — an industry friend recently narrated an incident where this friend was asked by someone else — whether the Indian chip industry was dead! Wow!! Someone’s got to be kidding!
First, I can’t really determine what’s the expectation level among people regarding India’s semiconductor industry. It seems that the interest is starting to build up, at a very slow pace.
However, folks need to understand that the semiconductor industry is extremely complex. You can’t get away by making some sort of statement about this industry! There is much more to semiconductors than someone merely writing a headline — “recovery is in sight” or “recession hits semicon” or 32nm is a great process node”!
Why aren’t more headlines like “overcoming ASIC design productivity roadblocks,” or “What lithography tools are doing for the photoresist market” doing the rounds? Or even: “Are designers as conscious of yield as they should be?” If you can spot the difference, you can make some comment on the semicon industry!
Two, the Indian chip industry CANNOT BE DEAD! It never was, never has been and never will be! Most people would find it tough to answer when Texas Instruments first started operations in India! Why did it choose to start so early? Simply because it backed India as a center! Naturally, the Indian semiconductor goes back that early!
Some folks perhaps relate more to the semiconductor industry with the advent of the India Semiconductor Association. The Association is an industry body, fulfilling its need. However, a lot of work has been going on in semiconductors before ISA came into being. I wonder whether folks have really cared to track this industry in India. I do remember when I first starting covering semiconductors in India, in the early 2000s, there were lot of curious glances from others!
Coming back to the Indian semiconductor industry, from ‘Made for India’, it has moved on to ‘Made In India’. Isn’t that a significant shift?
As for silicon IC wafer fabs in India, or for that matter, any fab in India — yes, it is still a good time to have one! Perhaps, the last time around, patience seemed to run out! And that’s a hard lesson to learn for those looking to invest in fabs — there is NO quick turnaround time in semiconductors!
Moshe Gavrielov, Xilinx’s President and CEO, recently said in EE Times that venture capital would not return to the semiconductor industry, even after this recession. If this does happen, it would be very unfair! Where would all the start-ups go?
Again, this statement brings clarity to the subject of semiconductors — this is a very complex industry, and definitely unlike IT/ITeS. We in India are so much into services that we fail to see the wood from the trees!
People love to compare China with India. Friends, do visit China or even Taiwan! Try to find out how they went about building their semiconductor industry, and manufacturing and R&D ecosystems. There are several lessons to learn, numerous role models to follow.
I strongly believe India can very well go the same route! We need some good startups in India as well. If and when those happen, please do not expect fast turnaround times. Please believe in India, and believe in its semiconductor industry. It needs your support.
This post is slightly delayed given the fact that I’ve been travelling! Here it is: Session 2 of Day 1, ISA Vision Summit 2009!!
The still quite young, Indian semiconductor industry has come a long way! Making his opening remarks during the session: Indian Design Influence, Ideas to Volume, Jaswinder Ahuja, Corporate Vice President & MD, Cadence Design Systems India, and chairman, pointed out that earlier, it used to be ‘made by the world, FOR India.’ However, globalization of design has now put India on the world semiconductor map. Today, it is ‘made by the world, IN India.’
The electronics systems production is clearly moving eastward. Even though the chip fabs may not happen in India, systems manufacturing is certainly happening. The emerging markets today offer a $5 trillion opportunity. However, the transformative challenge is: how to marry low cost, good quality, sustainability and profitability simultaneously!
Fantastic opportunity for investing in technology
Praveen Vishakantaiah, President, Intel, added that India has a fantastic opportunity ahead for investing in technology. He cited Intel’s examples, such as: products designed in India for global market — Intel Xeon 7400 processor; designed in India for India and emerging markets — Classmate PC, which was prototyped in India; and designed in India and customized for the local market — PoS retail kiosk solution.
Internal factors related to volume development include: unique market needs, designing for reliability, enabling customers — standard globally but varied in India. External factors include: access to customers — which can be challenging in a varied market such as India, access to employable talent, predictable supply chain, robust infrastructure — digital infrastructure should scale simultaneously with design and development, and proactive policies and regulations.
According to Vishakantaiah, there is a need for a call to action and seize opportunities. This means, capitalizing on opportunities for local and global product designs, increase the impact and build end-to-end competencies, and to continue to move up the value chain. There is a need to address the internal factors. This would enable increasing the quality of products and extend local products into global markets. There is also a need to focus on the enabling the local market for global product companies.
As far as the external factors are concerned, there is a need to be proactive to remove barriers. There is a need to also encourage research, faculty development and new curriculum. India also needs to build energy efficient power, logistics and manufacturing capabilities, and also reduce e-waste and think green for all product designs.
Downturn creates huge opportunities
Ganesh Guruswamy, Director and Country Manager, Freescale Semiconductor India, remarked that even the deepest downturns can create huge opportunities for companies and countries. “Continuing to innovate during the downturn is important,” he added. It is therefore, time for India to step up, put the right innovations in place and grow.
He stressed upon several custom solutions for emerging markets, such as two-wheelers, which dominate, e-bikes, which are said to be the future, LED lamps, power inverters, irrigation pumpset powered by solar, smart energy meters, and solar/PV base station and carrier based equipment for telecom.
Medical tourism is an emerging focus area for India, as it is growing by 30 percent each year. Medical tourism is likely to bring $1-2 billion to India by 2012. In this context, Guruswamy highlighted Freescale’s ECG-on-a-chip solution. According to him, the way forward would involve moving away from a design mindset to a product mindset!
Don’t be dwarfed by glamorous industries!
Dr Bobby Mitra, MD, Texas Instruments India, said that India is witnessing a change in its semiconductors agenda — from R&D to R&D + market growth. If followed properly, it can become a game changing agenda. “India has nearly 2,000 OEMs designing electronics products. That’s the untapped potential,” he said.
Most of the customers are smaller companies — the proverbial long tail. They know semiconductors and electronics very well. Such companies need to be measured by the firebrand innovation going on at those places.
Dr. Mitra said: “The products have to be the right kind of products. If they are complex, it is incidental.” He cited defense and aerospace as very strong spaces, while industrial is also an equally strong opportunity area. “We should not be dwarfed by glamorous industries,” he cautioned.
In the near term, the Indian semiconductor industry needs to develop two new stripes. These are: a high degree of customer centricity so it can be brought into the R&D engineer’s minds, and have an application mindset — India is very good in design work; it now needs to develop applications in the current context.
Dr. Mitra also called upon having research as an agenda for the industry. This can be done in areas that would assume importance in future. “By working with customers, we can make products more intelligent, by adding electronics and semiconductors,” he advised. “All of us have a key role to play in this transformation.”
SMEs, in particular, have a major role to play. Intel’s Vishakantaiah said that MNCs would need to mentor and coach such companies. Freescale’s Guruswamy added that MNCs can either help them grow or buy them out.
Dr. Mitra advised that even if customers didn’t provide business, it would pay to remain close to them. He also referred to TI’s Beagle Board, an open and low-cost platform, which enables development of applications. However, he advised the industry to be realistic about mass customization.
I had ended one of my previous blog posts by saying whether the Indian semiconductor industry was hitting the right notes?
In a continuation to that specific thought, it is necessary to first examine where India stands in the global industry. We are very strong in embedded design and design services — our traditional strengths. While these will hold good for a long time, these are probably not enough to really help India make a serious mark at the global level.
The Indian semiconductor industry, in its current state, needs a rethinking as far as strategy is concerned. Maybe, it cannot survive on chip design alone. Especially in times of downturn, the global semiconductor industry players would be looking for new markets and even customers, rather than low-cost production centers.
Consider these points: In the current economic environment, is the interest in developing new business relations with India really a top priority for overseas companies? Probably not, at this very point of time!
India is also seen more as a source of resource; and the extra resource is the last thing firms need at the moment, given the recessionary climate. What global firms are looking for are new markets and customers, and these points, along with its infrastructure, have been the areas of Indian weaknesses. Maybe, all of this will change, but definitely not overnight! And it needs some more planning.
That leads me to an interesting comment from a reader of my article on CIOL, who went on to suggest that an Indian investor could consider buying Qimonda!
Now that is some serious thought and vision as far as mid- or long-term planning is concerned. However, will there really be any takers for this? If this really happens, fabs can be built in India for memory production. If these fabs perform well, it just might turn out to be a good investment in the mid-term future of the Indian semiconductor industry. Definitely, it will make the world sit up and take notice. The other players would surely give India a look-in thereafter.
Quite a thought! This suggestion of investing in Qimonda is indeed a vision. Can the Indian semiconductor industry develop the courage to show and work toward making this kind of a vision a reality?
I asked him: Does India have the capability to sustain or even build a product development ecosystem? What needs to be done?
He said: “We need the following for this:
* Entrepreneurs committed to product development and willing to take that risk;
* Investors willing to take risk on product development companies;
* Consumption, and this will happen as the economy improves any way, and
* Deep enough technical/technological knowledge/know-how to put reasonably competent end products together.”
According to him, all of these qualities exist in India, and he cited examples of companies such as Sukam, Tejas, etc.
Well, there you have it!
We need enterprising entrepreneurs in India who are committed toward product development and willing to take that risk, especially in semiconductors. We need investors who can believe in things like even buying Qimonda, or some other company. After all, isn’t this what everyone’s been saying: this is the time to buy!
Dream big, India!