BANGALORE, INDIA: A delegation from Israel comprising some leading semiconductor companies were recently in India. In an interaction with CIOL, Michael Admon, Director, Industry & Construction Department, The Israel Export & International Co-operation Institute, talks about the growing semicon space in India and how Israeli semicon companies could become part of the evolvement. Excerpts:

CIOL: Sir, the Indian semiconductor space is truly growing. What role do you see Israeli semicon companies playing?

Michael Admon: Certainly, there is a tremendous growth happening in the electronics market in India. This growth is driving the local demand for semiconductor devices. However, this is just one part of the equation. The other part is that, India has a very strong design industry and very capable human resources. We also know that we are definitely going to see fabs coming up in India, sooner or later. However, the missing information is when are these fabs going to be set up! And it's a very difficult question to answer.

I feel that some of the global semicon players would come down to India to set up design centers. But, accessibility of market could become an issue for them. Then it would be good for them to partner with the local companies so that they will have access to the India market. SemIndia is one such model.

Electronics manufacturing is driving semiconductor industry in India. The other part is the design. India is strong in design. However, the missing space is the fab. If, for example, TSMC, UMC or SMIC open a fab here, they will take the business away. A local company that can offer sales opportunities, if it has strong access to the Indian market, will make it more attractive. SemIndia has presented such a model, besides enabling sales.

CIOL: Can we expect such an initiative from the Israeli companies? Is anyone talking to any of the Indian semicon companies?

MA: We are not talking to any particular company. However, we can share our expertise and experience with them. We, in Israel, have more that 30 years of experience in the field of semiconductors. Anyway, we are in discussions with some of the Indian companies. However, those discussions are in a very preliminary stage.

Initially, we want to learn about their vision and roadmap. For this, the Indian companies will have to present to us their capabilities and experience. Then only, we can find out where do we match. I feel that the companies involved in the semicon space in India are going to get more chances. Israel is a good example. Today, the top 25 companies in our country are from the semicon space.

CIOL: So, the fab would be the only reason why Israeli companies are here?

MA: I think the fab would be the major reason. However, that's not the only reason. There are other factors like new technologies, which will draw Israeli companies to India.

I foresee two to three fabs in India, sooner or later. Once that happens, very tight collaboration with Israeli semicon companies is possible. We have companies with expertise in engineering consultancy, piping, air systems, control of fabs and semicon equipment. Many companies visiting here have a good chance to be involved. Some Israeli companies also have representations here. They are in a very good position to benefit.

CIOL: Have any of the Israel companies set up design centers in India so far?

MA: Well, there are lots of design companies in Israel. Some of the multinational companies have also set up design centers in our country. However, so far, no Israel semicon company has set up design centers in India or in any other countries. That's mainly because of the fact that the cost of design engineers in Israel is lower than that in the other countries. We also have enough capabilities within our country to set up design centers. That's why companies from other countries prefer to set up semicon design labs in Israel. As India is very strong in software, Israel is strong in the semicon space.

CIOL: What are the other learnings about the semicon space have you received from your visit to India?

MA: We have got a real good chance to interact with the Indian companies. We have also got an opportunity to know more about the semicon policy of the government of India, as well as the vision of the Indian companies. This has actually helped us get more familiarized with the Indian companies. I think, it will enable Israeli companies to get involved in the fab development processes in India.

We also met the people from the Andhra Pradesh government. They believe that things would be moving on. Companies from both countries would now be maintaining contacts as it is important that the Indian companies are familiar with the capabilities of Israeli companies. Some of the companies from Israel also have relevance for fabs doing solar cells.