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not labor-intensive. However, low end
PCB manufacturing and assembly is still
possible to be done in India.”
He calls for extending additional
support to locally manufactured products—
in terms of tax concessions, faster logistics
and import of components.
Key issues that need to be
addressed
As per the ISA-Frost & Sullivan update,
the manufacturing index of three major
market segments was less than 50 percent
in 2009. While IT and Office Automation
is at 32 percent, telecom at 28 percent and
consumer electronics at 41 percent. These
three segments contribute to $3.3bn out of
$5.4bn of the total market (TM) in 2009,
which is more than 60 percent of the TM.
“If we focus on enabling the top
two applications in local manufacturing
from the above mentioned three market
segments,” says Sanjeev Keskar, managing
director, sales, PMC, Sierra India, “then we
can boost local electronics manufacturing
in a big way.”
Poornima Shenoy, ISA president,
cites establishing a National Electronics
Mission, promoting existing clusters
and creating new ones, encouraging
products specifically designed for India,
creation of an R&D fund, creation of
a manufacturing value addition fund,
rationalization of tax structure and
promoting skill development as some of
the key issues that need be looked into
to boost the electronic manufacturing
industry in India.
Shenoy highlights the current growth
drivers for Indian electronics ecosystem as
following:
• Growth in per capita income and
corporate spend on electronics.
• Government focus on
infrastructure.
• Increasing spend on IT equipment.
• Need for innovative products at
low cost.
• Intellectual property (IP) in India.
Developing next generation Ip
When we talk of IP, we should understand
that the only community that can perhaps
develop IP for the next generation is the
academia and institutes. This was stressed
by Dr Rajat Gupta, managing director,
Beceem Communications Pvt. Ltd.,
during CDNLive India 2010 University
Conference in Bangalore.
India is known to be an attractive
market. Its 50 million+ middle class
can well become the preferred target
www.globalsmtindia.in
India’s 50 million+
middle class can well
become the preferred target
for all product companies
in the world.
for all product companies in the world.
In this context, what can the academic
community do to stimulate product
development in India? How can they
engage in early technology development?
Gupta highlighted the need for
understanding the multiple layers involved
in IP creation. For instance, he said that,
in foundation IP, standard cell library and
I/O library are at the core. “Once you start
building, people will realize that there are
lots of interesting things to learn.”
esDM in India
Now, there has been a lot of talk
about electronics system design and
manufacturing (ESDM) in India over the
past one year. Instead of being “easier
to say, but difficult to manage,” the
ESDM initiative should boldly reflect the
message—“Electrifying start to dreams
of many (in India)” with suitable action!
ESDM’s real test has just begun! A clear
roadmap needs to be in place to achieve
sustainable growth ahead.
Paliwal says: “Competencies and
expertise are still bifurcated into hardware
(board), VLSI (IC) and software. System
design expertise is still extremely rare.
There is a need to focus on system
architecture and design competencies in
academic institutes, and Special Manpower
Development Programme (SMDP) is the
need of the hour. The design ecosystem
is well maturing, while a lot needs to be
done on the manufacturing ecosystem
perspective.”
According to Ernst and Young Strategy
Report on India “Electronics Systems,
Design and Manufacturing Ecosystem,”
currently the demand in the Indian market
stands at $45 billion and is projected to
grow to $125 billion by 2014 and $400
billion by 2020. The report states that
India currently employs 4.4 million people
in the electronics industry, which will grow
to 16.1 million in 2014 and 27.8 million
in 2020.
Adds Keskar, “We are already
doing well, and we are the leader in
semiconductor VLSI design/embedded
software and hardware development. The
What’s the future of the Indian electronics manufacturing industry?
area for improvement in manufacturing, as
mentioned above, is that we need to have
focus initiatives to attract/enable local
manufacturing of high volume and high
growth products in India.”
likely hot areas in Indian
electronics sector
Mobile devices, STBs, personalized
healthcare devices such as glucose meters,
BP monitors, digital thermometers, and
audio/video devices like MP3 players,
identification (RFID smart cards) and
automobile immobilizer applications are
some hot areas that will grow significantly
in the coming year.
“Consumer products and mobile
phones—owing to their major consumption
demand, and industrial products, due to
scope of local value addition, also add to
the list,” says Paliwal.
As per ST’s Sharma, the hot areas for
electronics sector in 2011 include:
• Communication infrastructure and
wireless handsets.
• Computers—desktops, notebooks,
servers, memory, printers, etc.
• Consumer electronics—STBs,
LCD/LED TVs etc.
• Industrial applications—energy
metering, power inverters etc.
• Lighting.
Top five trends for 2011
As per NXP’s Paliwal, the top five trends
will be:
• More system level design and
development from IP/block level
design and development.
• More designs for local/emerging
applications rather than for US/
Europe.
• More designs/products towards
green energy (solar, wind etc.).
• Big players like Philips/Siemens/
GE conceiving and developing
low cost individual products in
emerging countries—a move from
big hospital equipment—leading to
use of more ICs.
• Mobile and portable devices
pushing up usage of ICs in audio,
video and sensor application
domains.
According to Sharma, the top trends in
2011 will focus on:
• Growing local markets and rising
consumption levels.
• Emerging entrepreneurship activity
and innovation.
• ESDM.
Global SMT & Packaging Southeast Asia – Winter 2010 – 29