Indian EDA industry poised to take off

NEW DELHI: As Indian software firms move up the value chain, the prospects of

the electronic design automation (EDA) industry also seem to be looking up.

Electronic design comes handy when developing chips and electronic systems that

could be used in anything from consumer durable to semiconductors and telecom

networks. The current market size for EDA tools in India is estimated to be

around $25-30 million.

For instance, today 20-30 per cent of the cost of a car is for the

sophisticated electronic gadgets that are fit into the vehicle. Similarly, we

are likely to see an increase in the use of semiconductors in consumer durables,

especially with increasing popularity of intelligent devices.

Integrating EDA into product development will provide companies with critical

turnaround time. This will give them a market edge, which is so critical in the

success of products today. The existing model of most Indian companies, which

have an offshore development base in India, is expected to largely benefit from

using EDA tools. Major users of EDA tools include IT titans such as Infosys,

Wipro and HCL Perot, who do a lot of outsourcing projects for global companies.

However, the success of EDA tools is dependent on several factors, chief

among which is the availability of trained manpower. In addition to the basic

engineering degree, developers have to be trained in the use of these tools.

Other factors in India that are expected to propel the growth of EDA tools is

the recent government Bill that protects integrated circuit layouts and the

availability of a huge domestic market for these products.

Some of the major EDA players in the country include Cadence, Synopsys,

Mentor, and Avant. On the market potential of EDA tools in the country, Cadence

Design Systems’ acting country manager (India) Himanshu Singh said,

"There are three opportunity areas for EDA industry in the country:

integrating system-on-chip, design house for product companies, and helping

firms expand their design model."

With customized components, product firms can use these tools in making these

concepts into reality, although the key to the success of these tools will be in

their innovative deployment, he said.