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Medical field may push India's IC industry, says TI CEO

Posted: 09 Apr 2007 ?? ?Print Version ?Bookmark and Share

Keywords:medical industry? India semiconductor industry?

The medical field could turn out to be one of the next big growth areas for India's semiconductor industry in the coming decade or so, said Rich Templeton, president and CEO of Texas Instruments Inc. (TI).

"I will not stick my neck out and single out the medical equipment business as the biggest new driver of semiconductor sales for say, 2010-2020. But if you consider that something like 15 percent of the gross domestic product of the United States is spent on health/medicine, and such spending is about 12 percent of Japan's GDP, then you can well imagine how important this will be for the semiconductor industry," he said.

Templeton added that while computing, communications and entertainment will continue to be a big part of semiconductor sales, other, nonmainstream areas are emerging. "If you consider what the big parts of the economy that have not been much impacted by the semiconductor industry are, it seems quite obvious that these emerging areas, such as medical equipment, are important," he said.

The potential for this is tremendous in India too, he said, adding that the country's increasing market size caused him to schedule visits with universities, customers and medical professionals during a longer trip to this country than usual. "We foresee products developed by companies here that will be in the global market."

Looking ahead, Templeton also sees segments such as energy metering, point-of-sale manufacturing, power supplies, industrial applications and power management as important market segments in the future, even if their numbers are small now.

Wider outlook
Templeton said that emerging markets in the automotive, medical equipment and industrial sectors, as well as the billions of customers emerging in countries such as India and China represent opportunities for TI.

Meanwhile, speaking of DSPs, Templeton said that currently there is no increased price pressure in that market, but added that in the cost-competitive parts of its wireless business, the pricing was very elastic.

Templeton declined to offer specifics when asked if the lower-than-expected sales of Motorola's Motofone were affecting TI. But he did say that a very small part of the company's sales comes from selling its products to entry-level wireless phone manufacturers on an absolute basis.

- K.C. Krishnadas
EE Times




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