Global products still years away, Indian experts say
K.C. Krishnadas
(02/20/2008 1:50 PM EST)
URL: eetimes.com
BENGALURU, India — Though its design industry will continue to grow, India has a long way to go before it can begin offering global electronic products.
The launch of a global electronics brand here is at least a few years away, speakers at the third annual Vision Summit here said Wednesday (Feb. 20).
Speaking at the summit organized by the India Semiconductor Association (ISA), Wipro Corp. chairman Azim Premji said the Indian IT industry has in the last decade relied heavily on delivering IT services rather than focusing on product development.
"No spirit of experimenting with products that will address a global marketplace is there. Indian companies are still working on a cost arbitrage basis, and are far away from, for instance, launching an iPod," Premji said.
Indian companies should now work on a risk-sharing or royalty basis with partners to move up the design value chain. "Even this is still far away, and I do not see this happening soon. Neither do I see local manufacturing happening in a significant manner, with the quality of infrastructure and logistics" still lacking, Premji said.
With the rapid growth of mobile services fostering local production of wireless handsets by multinational companies, wireless is set to be the most significant driver of Indian electronics demand, followed by PCs and the automotive industry. But Indian manufacturers will need to reduce carbon emissions through greater use of solar power in order to drive electronics manufacturing, added Jairam Ramesh, federal minister for commerce.
He said the 1200-acre Fab City project near Hyderabad has seven confirmed investments totaling $7 billion over the next decade. Another five investment proposals totaling $1 billion over ten years also have received preliminary approval.
"I do not know, however, if this is a case of irrational exuberance, or if these projects will remain only on paper. Only time will tell," the minister said.
India has contributed to the launch of global electronics products through its IC design and software expertise, but the manufacturing issue involves transfering those capabilities to developing domestic products, Ramesh said. Indian partners have succeeded in designing complete chips, including an effort by the Semiconductor Complex Ltd. along with the Saha Institute of Kolkata. They used facilities at the Center for Nuclear Energy (Geneva, Switzerland).
Stanley Myers, president and chief executive of Semiconductor Equipment and Materials International, said the U.S. group will be working with ISA to promote semiconductor manufacturing in India. On the global front, Myers predicted continuing heavy semiconductor demand.
"India's ability to scale is unparalleled, and the India story is gaining momentum with telecoms, consumer electronics, IT and office automation driving semiconductor demand," Myers told the conference.
The Indian chip market is forecast to reach $5.49 billion in 2009, from $3.46 billion in 2007. Experts said a national IC manufacturing policy will make chip manufacturing more likely here after several false starts.
|
