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Conexant exec suggests changes in Indian policy

Posted: 23 Nov 2006 ?? ?Print Version ?Bookmark and Share

Keywords:Conexant India? Indian policy? K.C. Krishnadas?

The Indian semiconductor story will not be complete with the Indian government merely giving some land and financial incentives for a wafer fabrication facility, assuming the country's imminent semiconductor manufacturing policy actually does so. Several countries already offer such incentives. Unless India does more than this, it may have a tough time promoting electronics manufacturing in the country.

Many believe that the Indian government must form a venture capital fund which startups into design or product development can have access to, since most small Indian design companies are in need of financial assistance. And in order to promote electronics manufacturing in Indianow that the country has a potentially big consumer demand for electronics productsthe government can mandate that only companies that do manufacturing here can sell in the Indian market, said Shiva Gowni, corporate senior vice president and president of Conexant India Pvt. Ltd.

Delivering a keynote at the second annual Mentor Graphics User 2 User forum in India, Gowni said the lack of a comprehensive government policy in the country on full semiconductor ecosystem development is being felt. Besides, India does not seem to have learned from how South Korea, Taiwan and other countries in the Far East have demonstrably benefited from electronics manufacturing, he said.

The Indian electronics scenario will not be complete until multinational tech firms move beyond the current state of resource augmentation in India and into full product development," Gowni said. "The Indian electronics story is for real now with electronics consumption set to go up on a vast scale, but encouragement is needed."

He added that senior engineering talent for design is not available in India as the industry is only about a decade old. Companies have to go overseas to tap such senior talent and this is affecting product development plans in India in general, according to Gowni. He suggested that the government move away from providing land for fabs in and around cities, saying staff there will be unable to live in these neighborhoods because of high living costs. The first concrete proposal for a wafer fab in India is to come up near the city of Hyderabad in southern India, a place where living costs are going up because of rising affluence.

- K.C. Krishnadas
EE Times

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