Flextronics outsources work from India

BANGALORE: Singapore headquartered Flextronics will be outsourcing its development work from India for the first time. It has appointed Santa Clara-based Insilica Inc. as its System-on-a-Chip (SoC) development partner. Further, $13.4 billion Flextronics has picked up an undisclosed stake for $10 million. ‘Pentium Father’ - Vinod Dham founded NewPath Ventures LLC had funded the company last year, investing $10 million and is the only other investor in the company at the moment.

"We do have other partners across the globe, but in India, this is the first time we are outsourcing it to a partner. Flextronics has a 400 employee-manufacturing base at Electronic City, Bangalore but, no development center so far in India," said Ash Bhardwaj, President, ODM Products Group, Flextronics.

"In addition to meeting our goal to expand our existing SoC solutions, we chose Insilica as our SoC patner because of its design capabilities, growing IP portfolio and access to cost effective resources in Bangalore, India. We look forward to utilizing their expertise in mixed signal and RF design, large scale integration and advanced process technologies. With this alliance, Flextronics and Insilica will deliver SoC solutions with predictable delivery, quality, performance and cost reduction to our OEM customers," he added.

The 70-strong, (50 people in Bangalore and 20 in the US) Insilica plans to double its workforce in Bangalore this year. It expects to churn out revenue in the range of $10 million to $15 million this year, but "plans to touch $100 million in revenues within the next three years," according to Insilica, President and CEO, Anant Agrawal.

CIOL Bureau