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VLSI Design Services Ecosystem in India- A Study

Jei Narayanan
COO,-BlackPepper Technologies Pvt. Ltd.
Tuesday, September 22, 2015
Jei Narayanan
The history of the semiconductor industry in India dates back to the mid1980s, when multinational giants from U.S. started outsourcing chip design and SW development to India to take advantage of the low labour costs and talent pool. India�s semiconductor market has seen significant growth over the last decade, which accounts for less than five percent of the global market though.
At present, there are around 170 companies in India which are working in the areas of chip design, embedded software development and board design. India VLSI design service market is driven by both captive and non-captive design centres. These design centres are designing chips in a factory model for all the major industry verticals including Telecommunications, Networking, Consumer Electronics, Industrial, Healthcare, Automotive, and others.
According to reports, India VLSI design service market is expected to reach $3.02 billion by 2017, growing at a CAGR of 16.25 percent during the period 2012-2017.

Has Indian VLSI Design Services Ecosystem Measured Up?
Indian VLSI services companies have been playing the low end game of staff augmentation by mostly deploying junior engineers in the customer projects - which doesn�t serve the purpose in the emerging IOT space - predicted to be $2.2 trillion market by 2020, where customer is looking for service partners to take ownership of silicon and systems programs and deliver.
India VLSI Design services ecosystem has failed to build companies like GUC, eSilicon, Open silicon - who mainly deals with Turnkey Silicon programs - providing high end technology services.
In the changing ecosystem, the Tier 1 customers are looking for service providers who can take complete ownership of programs and ensuring predictable high quality delivery with short Turn Around Time (TAT). Also, Tier 3 customer who has a product idea is looking for service partner to take up complete project ownership which involves silicon implementation, system design and product design - through getting engineering samples.

IT Companies Offering VLSI Design Services

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