siliconindia | | December 20189innovations wherever it is happening, converting them into designs which are implemented and manufactured keeping the quality, cost, TAT and customer market in mind is the key to success of design lead manufacturing ecosystem which will enable us in fulfilling the demand.The democratized ESDM eco-system needs SOC (System on a Chip) based System Integrators to take innovative ideas from `concept- to-product'. This is need of the hour. Semiconductor industry which is the backbone of electronics products - be it consumer electronics, automobiles, mobiles handset, industrial elec-tronics, healthcare, telecom, servers and data centres - forms the basis of advancement ESDM ecosystem in India. Semiconductor Industry in IndiaThe history of the semiconductor industry in India dates back to the mid-1980s, when multinational giants from the U.S. started outsourcing chip design and software development to India to take advantage of the low labour costs and technical talent pool. India's semiconductor market has seen significant growth over the last decade, which accounts for less than five percent of the global semiconductor market though.At present, there are more than 200 semiconductor companies in India, which are working in the areas of chip design, embedded software development and board design. India's semiconductor design service market is driven by both captive and non-captive design centres. Captive design centres contributes major chunk of the market revenues, however, non-captive design centres also play a crucial role in the market. Captive segment includes Intel, IBM, ARM, Free-scale Semicon-ductors, NXP, Synopsys, Cadence, Mentor Graphics, Texas Instruments, Avago, Qualcomm, Mediatek, Max-linear, Analog Devices, nVIDIA, Honeywell, Cypress Semiconduc-tors, Micro-chip - who has in house Semiconductor design teams. In the non-captive segment Altran, Black-Pepper Technologies, Alten Calsoft, Synapse, Mirafra, L&T Technology Services, HCL, WIPRO Technolo-gies, and Open Silicon are some of the leading companies who are offer-ing Semiconductor Design Services. These design centres are designing chips for all the major industry verti-cals, including Telecommunications, Networking, Consumer Electronics, Industrial, Healthcare, Automotive, Defence, and many more.The Indian semiconductor component market is expected to be worth $32.35 billion by 2025, growing at a CAGR of 10.1 percent between 2018 and 2025. This growth emphasizes on the fact that the control on the components that goes into the system would made locally due to innovation led manufacturing. India semiconductor design service market has seen significant changes over the years on account of entry of new players in the market. Semiconductor Design Services in IndiaDuring 90s companies like WIPRO Technologies, TCS, Infosys, HCL Technologies, Sasken Technologies, MindTree, L&T Technologies, Cyiant, who were mainly into IT services started their Semiconductor design offerings. Their Semiconductor design team strength peaked during the mid 2000s. Semiconductor design services offering is mostly seen as an enabler for getting Software business by the mainstream IT services companies.Starting second half of the first decade of 21st century, pure play Semiconductor design services companies like SmartPlay, Sicon, Mirafra, Sankalp, WaferSpace, Concept2SiliconSystems, Whizzchip have played a disruptive role with their business model and have been successful in by ramping up and serving the customers.Mainstream IT Companies Acquiring Pure Play Semiconductor Design Services CompaniesBack in 2006, L&T Infortech - mainstream IT services company acquired GDA technologies to increase its Semiconductor Design team to 350+ engineers. MindTree in 2007 acquired Purple Vision to enhance its strength in Semiconductor Design services. In less than a decade both these companies have lost most of their Semiconductor design talent. Again, recently L&T Technology services have acquired Graphene Semiconductors to strengthen their Semiconductor services capabilities.In 2015 France-based technology consulting firm Altran has acquired Sicon Technologies (team size of 500 Engineers). Mainstream IT services company Aricent acquired SmartPlay (team size of 700 engineers). In 2018 Aricent was acquired by Altran. In the last three years more than 10 Semiconductor design services companies - within a span of 4-8 years of their existence - were acquired by companies which are primarily focusing on IT. With these acquisitions, the semiconductor design services industry has come through one full cycle. We have seen
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