It is the Indian subsidiaries of the global electronics design automation (EDA) software and services companies which will benefit from the trend of India becoming the design hub for semiconductor majors like Texas Instrument (TI), National Semiconductor, ST Microelectronics and Motorola.
For the Indian subsidiaries of Synopsys and Cadence, the global majors in electronics design automation (EDA) tools and methodologies, it means more of electronic designing activities, greater opportunity to sell their software licence in the country and the use of software licence as a part of the global licence bought by the software design houses and semiconductor companies.
The EDA tools are the software required for designing the ICs, Digital Signal Processing (DSP), FPGAs and SoCs.
Said Synopsys (India) Pvt Ltd managing director Pradip K Dutta, It is not that India at present is a big market for the EDA tools companies - EDA market size in India is around $100 million out of the global revenue of $ 4 billion - but the increasing outsourcing trend in the design service market has helped EDA companies to grow by 30-35 per cent in the last few years.
Synopsis India now has a $25 million research and development centre with 100 people working on activities including development of EDA tools, verification, chip design applications and methodologies, design services and solutions.
Increasing involvement in the product development in the country by the EDA companies is an indication the future of the electronic design industry in the country, according to Rohit Biddappa, marcom specialist, Cadence Design Systems India Pvt Ltd. Cadence is investing around $50 million in the next five years, primarily in its R&D facility, located at Noida, UP.
Said Mr Biddappa, It is the low cost and the availability of high quality manpower helping India to attract high-end design jobs. The global semiconductor companies are increasingly outsourcing their jobs to their Indian subsidiaries.
The entry of the Indian software development companies like Tata Consultancy services, Wipro, HCL Technologies into design activities has increased the outsourcing volume.
Said Mr Dutta, Increasingly top Indian software companies along with some niche design vendors who are working in the telecom and consumer electronics sector are inviting the global manufacturing vendors as well as semiconductor companies to outsource their requirement.