Origin Of Chip Designing in India

Technology Oct 26, 2017 No Comments

Sudhakar Palisetti, 47, in 2013 thought it might be a perfect time to commence business in India that might develop chips for the U.S. tech majors. The 2.5-decade old expert in the semiconductor segment witnessed that entrepreneurial interest of the U.S. in the segment was declining.

Financial deals were less. Even the amount of companies being established in the U.S. was at its lowest. And this was occurring at a time when handset trades were boosting all over the world and demand of chip was rising.

Origin Of Chip Designing in India

With some cash from friends and family, he established Cerium Systems. Today, customers of Cerium comprise the biggest chip producing companies of the world. The 400 individuals strong group in India aims to employ more 200 over the course of upcoming 12 Months in India and extra 150 in Malaysia, where Palisetti unlocked a headquarter earlier this week.

“The Indian semiconductor tale has its source in 2002–2005, when number of MNCs installed centers in the country. These centers played role of a foundation for growing talent for the nation,” claims Palisetti.

The department of information technology and electronics claims that almost 2,000 chips are being developed in India each year and over 20,000 engineers are operating on different features of chip verification and design.

“India is by far the biggest semiconductor R&D player after the U.S. today. No nation can offer scale similar to that of India. The entire Europe might not have as many engineers as India,” claims Pradeep Vajram, who traded SmartPlay, his chip design firm, in 2015 to Aricent for Rs 1,100 Crore. An industry expert of 25 years, Vajram traded Spike Technologies, his previous design services firm, for $20 Million to Qualcomm in 2004, before establishing SmartPlay in 2008.

Entrepreneurship in semiconductors in India has been a huge recipient of the worldwide consolidation in the segment and of the demand for big companies is to outsource at the minimum some parts of the commerce to lower costs.

Internationally, the time between 2014 and 2017 witnessed various huge acquisitions, comprising acquisition of Broadcom’s Internet of Things (IoT) business by Cypress Semiconductors, purchase of NXP Semiconductors by Qualcomm for $47 Billion, acquisition of ARM Holdings by Softbank for $32 Billion, and so on.

Tushar Imade