You raised two very real bottlenecks which stop the rapid Growth of the Semiconductor Manufacturing in India.
1)Power Shortages.
2)Abscence of Critical Finance.
I would like to add two more
3)Poor Infrastructure(especially to Key Markets ,inside and outside the country)
and
4)Lack of adequate quality Water Supply
Then there is the big-big issue about China and Chinese dumping.
India shares a very porous border with Nepal(also bordering China),from where its very easy to get cheap stuff from China.
If that stuff comes in(which will amount to nothing more than wholesale dumping of Chinese products);it will be very-very difficult for Legal Manufacturers in India to compete with this.
[We all know how the Implicit and explicit subsidies provided by the Chinese State to Chinese Manufacturers today]
Still I think for Niche Semiconductor Manufacturers (who focus on Quality products at the lowest price with Specific Warranties in place);should be able to do very-very well in India.
t.alex, everything can be possible with transparent and seamless government support. Semiconductor Startup Company may need $50m – $60m as initial investment. Lacks in advanced angel investor culture, which focuses on funding and advising hi-technology startup companies, could be the main reason.
Most startups require funding, after they exhaust the initial capital. But at this very early stage, typically no venture capitalists will invest less than $1m and in such situation, angel investors can typically fill the gap for funding. It is estimated that in US, 300K to 600K angels, invest $40B in over 5000 companies per year. However, the risk associated with an angel round is very high and they lose the money outright in many cases. In order to normalize this, they look for investing in companies that have the potential to offer 10X returns on investments. Sadly, India does not have a culture of angel investments yet, maybe because the hi-tech industry is immature and not too many successful hi-tech entrepreneurs. A few networks exist, but their exposure to hi-tech is very limited.
yes, only with a more transparent and seamless government system can India make these happen. China has spent much effort on improving the system for long time.
t.alex, yes now a day’s government is focusing much in electronic sector, including semiconductor electronics. This is mainly because of the huge requirement from internal market and possibility of Chinese spy ware through imported semiconductor chips and equipments. We can expect a fab unit very soon either in Hyderabad or Chennai. Background processes (paperwork and single window system) are happening and due to elections in some part of India, the respective governments are slow down the process. Probably there is a chance to draft the investment policy during ELITES-2011 which is going to be, happens in April 4th and 5th.
This is not surprising as India has been playing an important role in establishing R&D related to electronics and semiconductor. Building fabs, why not?
Backorder, Freescale have a plan for setting up a fab unit in Chennai near to Nokia plant. The main aim behind this movement is to tap the requirement from local markets like Nokia, Alcatel, visionics etc. Officially still they had not announced anything because of the state election, going to happens in April. Last February top officials from Freescale had a discussion with IT secretary to Tamilnadu government, for seeking permission and the infrastructure for setting up the unit. Once it’s officially announced, I can update you with details.
Maou_villaflore, the problems are not with foreign investments or labour codes or policies. India has everything like necessary infrastructure, skilled manpower, connectivity, good foreign investment policy etc. All such things are in force and other sectors including IT/BPO, Automobiles industries are making use of that. Even India had more than 10 automobile plants including BMW, Ford and Hyundai. The main factor is India didn’t prioritize semiconductor growth still 2007. Now government is very keen for promoting semiconductor and telecom industry. As the part of this ongoing policy DIT had started feasible study for Indian version of microprocessor and hope it will be in a fruitful way, within a couple of years.
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Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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