What does 'boom in India' mean for semiconductor
companies such as Freescale?
India is the fastest growing market in the world and Freescale is a leader
in the semiconductor industry. Over the last few years India has seen
exponential growth in the field of mobile and wireless, automotive, IT, and a
lot other. Freescale manufactures semiconductor for all these sectors. India
adds millions of mobile subscribers every month and Freescale is a key player in
providing semiconductors and chipsets to various mobile handsets. According to a
recent survey by India Semiconductor Association, consumption of electronic
equipment in the country would rise to $36 bn by 2015 from $2.8 bn today at a
CAGR of 29%. From about 2% in 2005, GDP contribution from this sector will
grow to more than 12% in 2015, which would put a bigger impact on the
country's economy.
Which are the industry segments where Freescale expects
to see growth?
Industry segments such as mobile phone and telecom infrastructure, PC
industry, automobile industry, and industrial and consumer appliances are the
main industries where we see growth. Though others cannot be neglected, we see
competitive growth in wireless and automotive industry.
What strategy are you planning, in order to tap the huge
potential of the Indian market?
We have a 15-year old presence in India having our software development
center in Bangalore and designing and manufacturing unit in Noida. The number of
employees in India is more than 500 and we are planning to increase the head
count to 1500 in the next four years. As various telecom and automotive
industries are establishing manufacturing unit in India, we are having close
tie-ups with them to be a key alliance and providing hardware as well as
software solutions related to semiconductors. The present total available market
(TAM) in sense of purchasing is $1.14 bn, which is expected to grow to $15 bn by
2015.
What is the future of the semiconductor industry in
India? What are the key growth drivers?
Key growth drivers are again the various growing industries that I've
mentioned earlier, but the main industries are mobile and telecom, and
industrial and consumer appliances industry. The key factors driving the growth
of design activity in India include rapidly growing local markets, a strong
education infrastructure with industry participants collaborating with academics
for training manpower in microelectronics, low-cost design talent, short product
lead-times, government support, and improved infrastructure.
What are your expectations from the wireless technology
that is picking up in India?
This is one industry that is growing faster than any other industry. Also,
its potential is huge in the Indian as well as in the global scenario. As I said
earlier millions of mobile phones are being added every month and telecom
companies and operators are yet to reach rural population, we could see a huge
growth in this sector.
What are the recent technological advancements in the
semiconductor industry that can complement the boom in the telecom sector?
Various telecom manufacturers, handset manufacturers, and international
automakers are putting their foot in India recently. Freescale's Wireless and
Mobile Systems Group (WMSG), which provides wireless solutions to deliver
seamless mobility accounts for 30% of Freescale's $5.8 bn total revenue. This
success can be attributed to Freescale's pioneering research and development
in areas such as nanotechnology and VLSI. As the concept of single-chip solution
getting closer to reality, our challenge becomes tough, and technologies such as
ZigBee and Ultra Wide Band (UWB) are becoming more visible these days. As
regarded by the industry, Freescale is a leader in pervasive intelligence.
Recent developments in advancement gate stack technology, CMOS, MRAM memory
technology, RF/IF silicon technology, SMARTMOS power technology, silicon on
insulator technology, and wafer technology will definitely propel this growth
further.
vadmail@cybermedia.co.in
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