BV Naidu quits SemIndia! So what?

Indian Semiconductor Industry

BV Naidu quits SemIndia! So what?

The Indian semiconductor industry remains strong, irrespective of a fab or some top executive leaving a company

Pradeep Chakraborty

Sunday, September 28, 2008

BANGALORE, INDIA: There have been reports in the media regarding BV Naidu putting in his papers at SemIndia. May I add here that according to the India Semiconductor Association (ISA), he remains an active member of the Executive Council of the ISA. BV Naidu himself informed me that he will be continuing at the board level at SemIndia, moving away from executive responsibilities. And, yes, he will be continuing at the ISA. So that’s good news!

If a fab does not happen in India or some top executive leaves a company, that does not really indicate that there’s been a failure. Such things have happened in the past and will continue to happen in future.

I have always maintained that India is a good 15-20 years behind in the global semiconductor space as far as having fabs are concerned. Am sure many in the industry are aware that the leader, Taiwan's TSMC, started in 1987, and China's SMIC, in 2000! TSMC is the leader and China is a country we are always comparing India with. Case closed!

As for India's fab initiative, perhaps, it just coincided with the turbulent global semiconductor industry. Or, simply, semiconductor was mistaken to be a commodity, which it is not! Or, maybe, it was a wrong choice to start off with in the first place!

As to whether India should focus on semiconductors OR solar, I am not the right person to comment or judge! It is for the semiconductor industry to answer. Maybe, solar is being hyped in India right now. If yes, like any other industry, once it matures, the solar bubble will eventually burst as well and consolidation will happen.

What's to be kept in mind is that all of these large solar investments in India should not divert the attention away from semiconductors, which is the real deal anyway! The need for solar is more due to the growing need for energy security. If we attract investments in solar/PV, brilliant! If India goes on to become a leader in that space, great!

Strong Indian semicon industry
Some other key points also need to be kept in mind that will indicate why the Indian semiconductor industry remains strong.

One, before and post the Indian semiconductor policy, India has continued to and will continue to do very well in semiconductors. Two, nearly every single MNC has its presence here; and no one that I know of, has indicated that it does not plan on expanding in India! Rather, more companies want to enter India. The interest of overseas semiconductor companies in India has been there since the past, irrespective! Three, traditionally, India has been very strong in design services and continues to remain so! Four, India is the emerging (or already emerged) embedded superstar! Five, more decisions are now being made out of India.

Having a wafer IC fab isn’t such a big deal, is it? So many folks have already moved on to fab-lite anyway! Yes, having one wafer IC fab would surely prop up India’s image in the global semiconductor market. But well, not having one, won’t sully India’s image either!

If we do not have a wafer IC fab, then let’s just all accept that India was not ready for one, and let’s move on! Life in semiconductors is much more than wafer fabs, as India’s brilliant designers and design services companies keep proving day in and day out! And hey, isn't that the one main reason why everyone's been constantly and consistently been attracted toward India?

Focus on product development
I’ve maintained earlier that doing product development is probably not India’s strength! Design services and embedded surely are! Let’s focus on our strengths!

The Indian semiconductor industry, as I see it, remains strong as before, fabs or no fabs! The Indian semiconductor story is something like this: Lots of high-end designs are being done here. Lot of key decisions are being made out of India. The talent pool is very much intact and growing! We are leaders in design services and embedded, make no mistake!

The only part missing is an initiative by the Indian semiconductor industry to incubate, nurture and develop India based product companies.

It is a sincere hope that this particular challenge will be tackled and overcome by the stakeholders in the Indian semiconductor industry.

So, how does having or not having a fab, or, some top executive leaving a company impact the fortunes of the Indian semiconductor industry? You tell me!

©CIOL Bureau

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Reed said on 10/5/2008 2:20:32 AM:
India should focus on design services. There is no point shouting about fabs anymore. India should also develop more product companies. Wonder why it is not paying attention to this aspect

to Reed

Bhalon said on 9/28/2008 3:51:27 AM:
indias strength is in soc and embedded + design.

to Bhalon

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