Wednesday, December 31, 2008
In spite of the current tough times, there are abundant opportunities for innovation, co-development and globalization in the semiconductor design industry, especially with the opportunities offered by the Automotive Industry. Even with the economic crisis gripping the automotive industry globally, it still remains one of the key customers for the semiconductor design industry and the demand has been growing continuously.
Technology per se, driven by the priorities of fuel efficiency, emission reduction and safety, automotive companies are investing heavily in semiconductor solutions for hybrid vehicles, driver assistance systems and in-vehicle networking solutions. At the same time, each automotive manufacturer is faced by the challenge of reducing costs without compromising on product features and quality.
OEMs are thus expecting semiconductor companies to deliver not just chips but the solution platform comprising of the hardware platform along with the software. A solution that is very close to the final product – validated, tested, certified and productized – which creates a very good opportunity for semiconductor solution makers.
Additionally, at the silicon level, nano design for small chips is a leading market growth indicator. The clear trend observed is Low Power Chips for both Consumer Electronics & Automotive Applications and more analog and Mixed Signal content rather than only digital content.
The market scenario for semiconductor industry is also changing very rapidly. Demand for electronic appliances is decreasing in the European and American markets and increasing in Indian and other APAC markets. Manufacturers are thus not looking at India as just the Outsourcing partner for design services but also as a huge market for the products. The future would be a playing ground for products ‘designed in India for Indian and APAC markets.