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News

   19th Feb 09

 Importance of semiconductor fab for India

Somewhere in late 80s or early 90s, India's BEL (Bharath Electronics Limited) was making quite a few most used semiconductor devices; some of the devices include telephone speech IC, audio amplifier, and basic operational amplifiers. Also this company was making lot of popular discrete components. There were few more companies too making some of the popular discrete components at that time. ICs made by BEL were well utilized in domestic electronics systems market. But as the technology of chip integration started growing very fast, Indian companies could not match to the level of change happening in US, Europe and Japan.
Added to this, many US companies started investing in India to outsource lot of design related work. Texas Instruments (TI) is the first company to move design work to India. Texas Instrument and its employees both got immensely benefited by this idea of using India as offshore design center to handle lot of programming and such non-core design work to India. Following TI, Motorola, Analog Devices, Intel, Philips, HP, Siemens and many more started investing in India and reaped significant benefits. More than companies, the electronics engineers got immensely rich by throwing away the jobs they held not only in small private Indian companies but also in public sectors such as ISRO, ITI, and BEL. In this process many Indian companies keep loosing trained talent for these multinational companies.

Along with electronic-design-services, the business application software industry was suddenly rose into such a level, it started absorbing, engineers from civil and mechanical engineering stream into so called 'IT', mainly software programming and IT enabled services. There are many hardware design engineers who have learned Java, C++, Oracle and such application programs to take up jobs in this segment.

Though Indian engineers started becoming rich, but not the Indian electronics manufacturing. Now India is buying lot of electronic systems, most of them are not made in India.

Today not only in electronic systems, even in any equipment/product, there is increasing amount of electronics and mainly the semiconductor chips. Their role is so important from cars to cameras, the power of semiconductor provides the selling edge to these products.

There is no region in the world, which is leading in manufacturing without focusing on electronics.
Manufacturing is very essential to India to maintain all round growth. To give jobs to many skilled technicians, India needs to focus on manufacturing. Thanks to automotive and electrical industry, they are lifeline to many skilled labors in India. Electronics was offering plenty of jobs to skilled workers a decade ago but not now (except for few EMS companies).

To focus on electronics manufacturing, India desperately is in need of robust component industry, mainly the semiconductor chips. Semiconductor field should be more of engineering than of software design services.


This is the time to quickly build couple of advanced semiconductor fabs not only for ICs but also for LCD displays and Solar Photo Voltaic (PV) cells.

The strong reasons are,

India needs millions of various electronic systems at low cost.
Bridge the digital divide by providing jobs to skilled technicians
Electronics technology availability will make other engineering fields to compete better in the world market
There is adequate availability of experts in VLSI design and semiconductor manufacturing. If we flip through IEEE journal on solid-state circuits, approximately on an average around 10% of authors are from Indian origin. Not far from China's share, the factory of the world.
Moore's law (law on semiconductor technology growth) is going to loose validity. No fear of fast technology change. Otherwise also let the industry be brave and adopt for changes.

Semiconductor manufacturing is very riskier business but its essential for a region of India's size and capacity.

Read this below closely related article to above subject

Detailed study of possibility of a $20 Laptop computer




          
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