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Follow UsBANGALORE: Alliance Semiconductor Corp. said it planned to invest up to $50 million in its Indian design centers over the next five years.
The U.S. company -- which makes computer memory and signal products for microchips, communications, consumer goods and industrial automation -- said that it planned to undertake a "significant amount of recruitment in India this year".
Alliance will use the investment to expand its engineering and deployment services to further its market expansion. The company plans to undertake a significant amount of recruitment in India this year. The planned investment would help the company double its engineering staff to from existing 150 to 300 over the next three years at its design centers at Bangalore and Hyderabad. The company had so far invested $20 million in its Indian centers and research activities.
The company has a manufacturing base in China while it has three development centers in US, Hyderabad and Bangalore and sales offices across the globe.
Speaking on the occasion N Damodary Reddy, Chairman, CEO and President, Alliance Semiconductor Corporation, said, "The team at Alliance India has exceeded the goals set for the India center and has significantly contributed to the global growth of Alliance. Our competency in design and development at the forefront of mixed signal technology, Hypertransport based chip-chip interconnect technology and leading edge memory products helped us, in a significant measure, to shape our world leading portfolio of products and technologies."
"The company is not looking at expanding it presence in India merely to reduce costs. More than a cost advantage, it is about a proactive approach of developing products in a timely manner ahead of the market needs," he stressed.
"Our plan is to expand the Bangalore and Hyderabad design centers to drive product development efforts positioning Alliance as a dominant player in our chosen market segments," he added. He also revealed that 80 per cent of their investment goes into R&D and the rest in buying capital equipment.
Jayanta Lahiri, General Manger-India Operations, Alliance, said, "The India design center has grown from 20 to 150 engineers in the last 5 years. This investment will enable us to accelerate product development efforts and further expand our technology talent in Bangalore and Hyderabad."
"Alliance's Bangalore center has participated in various designs from specification to volume production and is committed to supporting customers in India and around the world. We are an established mainstream semiconductor company with significant financial strength and see India as a major growth opportunity from a market and technology viewpoint," he added.
He also reveled that, "Around 90 percent of the 40 products introduced so far are from our Indian design centers. We are expanding our product portfolio to include power and system management products.
The company clocked revenues to the tune of Rs 2.8 crore last year and is targeting a 15 percent growth for the coming year. Currently the company is focussing on organic growth but is open to acquire start-ups with similar synergies. The company has also shifted its focus to develop mixed signal products from its earlier memory based products and plans to tap the large market share of the $3bn market. In fact according to the company, more that 30 per cent of their revenue comes from non-memory based products.
CIOL Bureau