Lack of big market, high costs chipping away at India semicon story: Foreign Companies
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However, the country's talent pool for chip design is a major asset, which is now evolving to add more value to the chip design process with over 20-25% of designs now coming out of India, they said.
In a joint interaction with ET, the companies said while India is well-positioned to benefit from the US-China trade war, it needs to accelerate the development of manufacturing infrastructure to make the most of it. This will require training engineers in manufacturing processes at a large scale, which will require significant capital deployment and new academic programmes and training facilities.
«In a way, because we are not selling what we are designing in the Indian market, for any company the running cost is much higher than what the company is selling in India… Why we don't have the architects and the big decision makers in India, the main reason is that we don't have that market volume here,» said Rajeev Kumar Srivastava, director and chief technology officer at the Bengaluru site of NXP Semiconductors. «That matters a lot because those people who are driving customers directly will have more say in defining the product.» NXP is expanding in the local market, but the number of people it employs is growing faster, the executive said.
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