January - 2009 issue > Management

By Raghu Panicker

The business mantra in today’s semicon world is to ‘Innovate locally and Integrate Globally’. The strategy is to innovate, using the right technology at the right time with the right talent.


The Indian design market has witnessed a high growth in the last few years and continues to grow from what we see in the VLSI and the embedded design space. India’s design market is set on a double-digit growth trajectory until 2010. This growth is witnessed mainly due to the emergence of companies in the product business coupled with an increase in demand for outsourcing by IDMs. The local board design outsourcing is also catching up as the demand for new designs coming out of India is growing. The design and development services outsourced are mainly in the areas of VLSI and embedded systems design. North American and European countries are increasingly turning to offshore outsourcing services in the product engineering space from India to innovate products, cut costs and achieve their profitability goals.

The OEMs in India are in the process of innovating and developing new products in the areas of telecom, medical electronics, personal computing, etc. Moreover, these OEMs are modifying the existing products for new functionality and features with an objective of giving the price advantage and compatibility to the consumer. These factors are prompting the OEMs to develop new designs and modify the existing ones. So, all these factors have had a considerable impact on the flow of projects to India. The growth in business for the semi design services companies is also because of the outsourcing done by IDMs to third-party board design firms in India. Alternatively, they are also outsourcing the same to their respective captive centers here. Usually the captive centers focus on advanced technologies and help in the development of products for the global market.

Many of the Indian OEMs coupled with the captive design centers of MNCs have led to increased outsourcing of the captive design centers that outsource projects throughout the year to these companies to get the price advantage and to minimize risks associated with board and system design.

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