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03/12/07 08:02 AM
EDA in India new Report this article as Inappropriate to us !!!Login to Reply

EDA in India

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Ramesh Chandra
03/12/07 08:02 AM
Difference between hype and reality new Report this article as Inappropriate to us !!!Login to Reply

While this article largely presents one view, let us consider some other points. We should separate hype from reality.
1. India now has a mature IT industry being in business for over 2 decades and with the top 10 companies MCAP of over $ 25 billion (Infosys, TCS, HCL,Satyam and six others) employing over 500,000 people. Yet one has still to see a shrinkwrapped software from any Indian company. Something which small outfits in California produce by the week. So when we talk of EDA tools from India we should first analyse why there is no shrink wrapped software from companies which are significant players worldwide and with tremendous skill, manpower and financial muscle and also worldwide marketing setups.
2. India produces 1.1 million cars, yet no car is designed in India as a product. Even Tata Motors the ubiquitous Indian automobile company with a turnover of $ 6 billion and mcap of over $ 10 billion designs iits cars in Italy. As against this a much smaller company Skoda in the Czech republic designs cars on its own.
3. Jobs are given fanciful names which adds to the hype. Call centres who need people to work at night in India (daytime in USA) says in its recruitment advertisment in India "our work times are synchronised to world timings". An EDA company with a development office in Hyderabad (a city in Southern India) calls a simple QC job for pcb software where an engineer is required to just run tests sent from USA and send back reports as "lead software validation engineer"
4. ISA staff Ms Poornima Shenoy has written that the Indian Electronic Industry will grow to $ 365 billion in 2015. If we take Electronics as say 12 % of the economy, this translates to national GDP of $ 2.8 trillion. Considering that the present GDP is $ 800 billion it would call for a CAGR of 32 % for the economy till 2015 to achieve this figure. Economists call 11 % growth "an overheated economy". India has averaged 8% in best of times. Whether the figures are achievable or not is anybody's guess

03/12/07 07:37 PM
Problems of Rapid Growth new Report this article as Inappropriate to us !!!Login to Reply

One of the problems the Indian Chip Design Industry is facing is past legacy.
The Industry grew very fast in the late 90's with a surge in demand of staff. With no history available a lot of inappropriate staff were selected, which no doubt served the purpose at that time. Ten years later the same people have reached the critical middle management level, where on the one hand they are micomanaging downstream project implementation and on the other hand trying to raise the work being done up the value chain.
Since not all selections in the late 90s surge were appropriate, the industry is saddled with not the best staff for the job but with many upcoming, able and challenging juniors. Those companies who have been able to recognise this problem and taken corrective measures have done well, while some who have not are getting saddled with an inefficient middle management.
An interesting challenge for the maturing design industry in India

03/13/07 11:04 PM
Nice numbers.. but tell me frankly new Report this article as Inappropriate to us !!!Login to Reply

I have to agree somewhat that the projections made by the briefing document from ISA is inflated to bring in the 'feel good' feeling. I think the 75,000 engineers figure also mistakenly included the embedded engineers. Also the estimate of the Indian spending on electronics is bloated and half that figure might be a good guess too. And again this hype about the Indian middle class, no there simply arent 400 million as it says, it's amusing where they got that number from. From my reading, I glean its about 250 million and growing slowly, yes slowly. Now my views are so much in contradiction to the estimates is because I dont live in an ivory tower where I am fed some intelligent data, I am just an average indian working in chip design verification, walking the streets of Bangalore and aware of my sorroundings. I dont want to sound cynical but my hopes are tempered with reality- I think rajeev hit spot on with his assessment of the conditions here and pratap was correct in his evaluation for start-ups. As far as starting new business is concerned India dosent have any problem, infact there are more scrips opened and operated in Bombay Stock Exchange(our equivalent to NYSE) than in any other country. We are not new to business per se but EDA or for that matter even Software is a purely engineering endeavor and closely embraces technology. Technology as we know it is something foreign to us, pardon me, I am not naive but this is the truth. Technology has always been driven from the west and we had a lot of catching up to do in manufacturing before we could stand our ground in the world. This is because technology is basically nurtured and cultivated at the grass roots level by the universities and this symbiotic relationship between universities and industry is a determinant of the strength of technical competence. This is one area where India is thoroughly lacking. I dont know why when anyone talks of Indian education they immediately picturize the IITs. Yes IITs are excellent but do you know the percentage of indian engineers who come from IITs, it's << 1%. With some exceptions the rest of the institutions are mediocre or average at best. They are more like extended high schools in disguise. Poor Vic I wonder where he got his idea of a revolution in indian education from. Yes things are changing but slowly yes I repeat slowly. Things do happen in India but they happen slowly and this propensity for slowlness cant be changed.
So coming back to EDA since this and software is purely an technical undertaking it faces enormous challenges in India and frankly speaking availiability of skilled manpower in these areas is felt. No doubt EDA veterans comming from abroad and settling here would intitiate the surge of startups but ability to sustain and grow is only dependent on the fundamental needs to be addressed in education and business mindset. No wonder we have billion dollar software companies but they dont do any cutting edge applications, they are mainly into servicing because those are the risk free cash cows at present. To be innovative in business requires some daring and risk taking which are conspicuous by their absence in indian technology industry but again we are learning from others and things are changing but slowly mind you.
Hmm so Vic you thought that our politicians were tech savvy no doubt. There are competent beauracrats here but our politicians are a diffrent brand, you should listen to what they dont say and I hate to say this but beware most of them dont know what they are talking about.
Overall I am optimistic about EDA in india not because of all those statistics but because the ingredients are there and I know we are learning and growing and thats a recipe for change for the better. Not that we have to but I dont think we will ever be the silicon valley becasue we are oh.. so different.

03/15/07 09:54 AM
EDAWeekly Feedback Report this article as Inappropriate to us !!!Login to Reply

This article is interesting to read as most of the Semiconductor industry talks in India have been around Design and Manufucturing; very little around EDA.
1. EDA development in India: Yes, it is possible and it is happenning. I believe there is technical capability to develop new products. Some of the large players are already doing it.
Hence, it is possible for an Indian EDA company to grow and develop EDA product in India. But they would need to have a big size of their marketing outside India as the state of the art user are NOT yet in India.
2. Wafer Fabs: again a lot of hype going on but it will take 10-15 yrs to be able to do create the ecosystem to do state of the art. China, Malaysia and of course Taiwan, Singaproe are already there.
So this is really going to be the opportunity cost and the benefits of being located in India istead of else where: in term of profits, in terms of understanding the market for delivering for the Indian market.
Nevertheless, manufacturing is good for the economy as it allows a larger pool of employment with lesser qualitfication to earn more and Hence grow the economy.
3. High tech manufacturing and ATPkg: these would be where the first phase of manufacturing will come from and would be more viable as it requries lesser investment, lesser stringent infrastructure and easier to find or trian resources from the exisiting pool.
4. In any case: these are the years of OPPORTUNITY in INDIA for the ones who have the vision and the ability to sustain harship: in this century, the world will be supplied by China and India Or will be selling to China and India to make money out of their business.

P Choudhury
03/18/07 03:40 PM
India's Technical Education new Report this article as Inappropriate to us !!!Login to Reply

India losing tech edge and race
Pramit Pal Chaudhuri
Hindustan Times
Far from having an endless supply of brilliant engineers, India is in great danger of losing the race for tech know-how to the United States and China, indicates a new report. Vivek Wadhwa of Duke University, the lead author of Seeing Through Preconceptions: A Deeper Look at China and India produced by the US National Academy of Sciences, warns: "China is going to eat India's lunch unless India invests in the long term."
The report says India's much-maligned private colleges are the unsung heroes of the country's existing level of technical education, while its "public education system is mired in politics and inefficiency". It points out that India is also desperately short of PhD holders in engineering and technology.
The report undermines the oft-repeated claim that the future of technology will shift towards Asia because India and China produce 12 times more engineers than the US. It also destroys a number of myths, including the notion that the US is short of good engineers.
India's growth in engineering education, says the report, "has been largely bottom-up and market-driven." There are roughly three times more private engineering colleges than government colleges. While the former produces the numbers the new economy needs, their standards vary widely, according to Wadhwa.
His study shows that China leads the US and India in producing post graduate and doctoral degree holders. It says the Indian Institutes of Technology produce too few graduates. All the IITs together awarded only 2,274 bachelor's degrees in 2002-03. The same is true about India's PhD holders in engineering and technology. China increased its PhD holders five-fold between 1994 and 2004 to almost 10,000. The US produced about 8000 in 2004. India produces less than 1000. The trend has been flat since 1995. "India is in particularly bad shape," says the report

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