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August - 2014 - issue > CXO View Point

Electronic Manufacturing Needs a Humungous Budget Cut

Thursday, September 4, 2014
Somshubhro Pal Choudhury, MD, Analog Devices India & Jon Bentley, Segment Regional Marketing Director, Industrial & Instrumentation, Analog Devices, Inc.

Analog Devices, Inc. (NASDAQ: ADI) is a semiconductor company providing analog bridge to the digital world which offers a range of ground-breaking products by investing 19 percent in R&D. Headquartered in Norwood, Massachusetts, the company has a current market cap of $17.05 billion.

India has a dubious classification of being the largest importer of defense equipments. Today with the policy decisions, the government is trying different ways like incentivizing to enable more technology transfers to be done out of India. However, without a big manufacturing push from the new budget, India would be in troubled waters. So, the electronics manufacturers are keeping their fingers crossed for a humongous budget cut.

As India has opened up the defense industry, they are now starting to partner with big MNCs and global enterprises. Hand-in-hand, the traditional IT houses have slowly matured into design houses over the last couple of years and deriving a significant portion of their revenue from product engineering services that delivers loads of design works for their international clients. Communication infrastructure is also evolving thanks to the MNCs doing design products.

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