Indian, Malaysian firms in hardware pact
Thursday, 06 November 2003, 20:30 IST
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BANGALORE: A handful of Indian and Malaysian companies are banding together to design and make a range of microchips, printed circuit boards and other components used in electrical goods. The companies from Karnataka and Penang in Malaysia aim to cash in on India's design skills and Malaysia's low cost manufacturing to win business from global players turning to low-cost outsourcing. (Is this the best way for smaller Indian IT forms to stay in the competition?) "A lot of companies worldwide are looking at alternative locations and they don't want to depend on only one location," said Vinay Deshpande, chairman of Encore Software, one of the companies involved. "So, this is the opportunity to grab (that). Malaysia expects to grow its manufacturing volume, but it does not have adequate labour or design skills and India can provide these." Indian companies in the new consortium include computer peripherals maker TVS Electronics and Encore. The Malaysian members are mainly small firms. Indian software companies including Wipro and HCL Technologies already work on chip design projects for overseas customers, but do not make chips themselves.
Source: IANS
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