MERRIMACK, USA: GT Solar, a global provider of specialized equipment and technology for the solar power industry, announced the availability of its Silane Production Package, which bundles GT Solar’s silane technology expertise with its proprietary equipment.
This new package enables companies in the semiconductor, solar, and flat panel display industries to secure their own source of ultrapure silane gas using cost-effective, local production facilities.
“Increased demand from the semiconductor, photovoltaic, and flat panel display industries has resulted in shortages of silane gas accompanied by rising prices,” said Dave Keck, vice president and general manager of GT Solar’s polysilicon business.
“As the need for silane gas continues to grow, companies around the globe are beginning to seek more secure solutions. With silane production a natural extension of our existing, well-proven polysilicon and trichlorosilane production plant capabilities, we believe we are well positioned to take advantage of these adjacent market opportunities.
“Similar to what we are experiencing in polysilicon production, where GT Solar’s efforts with new entrants are drastically augmenting polysilicon supply, we expect that our technology and know-how will help create a new class of regional competitors in the silane market. As a result, we anticipate that silane users will have more choice, and there will be a reduced reliance on the one, primary supplier that currently exists.”
GT Solar’s Silane Production Package is a modular equipment solution and basic engineering package that enables companies to construct silane plants and begin delivering silane gas within 24 months. The package includes design, fabrication, quality control, training and technical support services; as well as a modular silane production plant, complete with piping, instrumentation, and analytical equipment.
Silane (or monosilane) gas is one of the most widely used silicon-containing gases utilized in the production of the thin silicon layers that are the foundation for semiconductor and photovoltaic products, as well as flat panel displays.
Showing posts with label Semiconductors. Show all posts
Showing posts with label Semiconductors. Show all posts
Thursday, June 25, 2009
Wednesday, May 13, 2009
Amtech reports Q2 results; to intro new solar products -- Diffusion + PSG Etch + PECVD
TEMPE, USA: Amtech Systems Inc., a global supplier of production and automation systems and related supplies for the manufacture of solar cells, semiconductors, and silicon wafers, reported financial results for its fiscal 2009 second quarter ended March 31, 2009.
Q2 fnancial highlights:
* Net revenue of $10.9 million, compared to $17.6 million in the prior year quarter: approximately $3 million of shipments scheduled for Q2 were pushed into Q3 and Q4, due primarily to delays in readiness of customer facilities.
* Solar revenue of $4.6 million, compared to $11.4 million in the prior year quarter.
* Gross margin of 22 percent, compared to 23 percent in the prior year quarter.
Impairment and restructuring charges of $1.7 million relating to Bruce Technologies, an Amtech subsidiary dependent on the semiconductor industry.
* Operating loss of $2.6 million, compared to an operating loss of $82,000 in the prior year quarter.
* Net loss of $2 million, or a loss of $0.22 per share, compared to net income of $161,000, or $0.02 per diluted share, in the prior year quarter.
* Quarter-end backlog of $34.7 million (solar $32.6 million).
* Repurchased approximately 144,000 shares of Amtech common stock during the quarter.
* Ending cash balance of $37.2 million at March 31, 2009, compared to $38.4 million at December 31, 2008.
Cost reduction actions
* Consolidated workforce has been reduced 22 percent since its peak at September 30, 2008
* Amtech executive officers and outside directors have taken a reduction in salary and board meeting fees, respectively, starting April 1, 2009
* Bruce Technologies subsidiary has been restructured
J.S. Whang, President and Chief Executive Officer of Amtech, commented: "As we previously announced, fiscal second quarter revenue reflects the push-out of approximately $3 million in shipments into subsequent quarters. To date we have not had any order cancellations of significance. We continue to be proactive in managing our operations to achieve our goal of positive EBITDA in fiscal 2009 (excluding restructuring and non-cash impairment charges), as evidenced by the 22 percent reduction in our workforce and the restructuring of one of our subsidiaries. Our financial position remains solid, with essentially no debt and a strong cash balance.
"We remain focused on executing our multi-product solar growth plan, including the introduction of our new solar etch product, which we expect to launch within the current fiscal third quarter. With this launch, we will begin offering three solar products, Diffusion + PSG Etch + PECVD (continuous sequential processing steps), which will further increase the size of our served available market. We are determined to emerge as a stronger player through the current down cycle, and continue to be optimistic about the long-term growth opportunities in the solar market as all fundamentals remain intact."
Net revenue for the second quarter of fiscal 2009 totaled $10.9 million, compared to net revenue of $17.6 million for the second quarter of fiscal 2008, and reflects lower shipments to the solar industry partially offset by increased shipments to the MEMS (microelectromechanical systems) segment of the semiconductor industry and recognition of previously deferred revenue.
Total orders for the quarter ended March 31, 2009 were $5.8 million ($3.0 million solar) before foreign exchange effect on backlog. At March 31, 2009, the Company's total order backlog was $34.7 million, compared to backlog of $42.4 million at December 31, 2008. Total backlog includes $32.6 million in solar orders, compared to solar backlog of $52.6 million at March 31, 2008. The effect of foreign exchange on backlog was $2.6 million in the March quarter and contributed to the decline in the backlog. Backlog includes deferred revenue and customer orders that are expected to ship within the next 12 months.
Gross margin in the second quarter of fiscal 2009 was 22%, compared to 23% in the second quarter of fiscal 2008, primarily reflecting lower shipment volumes and the related reduction in efficiencies and plant utilization. Amtech recognized $0.5 million of previously deferred profit for the quarter ended March 31, 2009, net of deferrals, compared to a net deferral of $0.7 million for the quarter ended March 31, 2008.
Selling, general and administrative (SG&A) expenses in the second quarter of fiscal 2009 decreased $0.9 million, or 22 percent, to $3.1 million, compared to $4.0 million in the second quarter of fiscal 2008. The decrease in expense is primarily due to decreased sales commissions on lower revenue generated in regions where third party sales agents are utilized.
In the second quarter of fiscal 2009, Amtech's Bruce Technologies semiconductor operations were restructured due to the continued slowdown in the semiconductor industry. As a result of the restructuring, Amtech recorded $0.6 million in restructuring charges and $1.1 million in non-cash goodwill and intangible asset impairment charges in the second quarter.
Depreciation and amortization in the second quarter of fiscal 2009 was $385,000, compared to $386,000 in the second quarter of fiscal 2008. Included in the second quarter fiscal 2009 results is $167,000 of stock option expense, compared to $128,000 in the second quarter a year ago.
As a result of a pretax loss, an income tax benefit of $580,000 was recorded in the second quarter of fiscal 2009 compared to a tax expense of $105,000 in the second quarter of fiscal 2008. The tax benefit was lower than our historical effective tax rate due primarily to an increase to the valuation allowance and permanent differences between financial income and taxable income.
The net loss for the second quarter of fiscal 2009 was $2.0 million, or a loss of $0.22 per share, compared to net income of $161,000, or $0.02 per diluted share, for the second quarter of fiscal 2008.
Total cash and cash equivalents at March 31, 2009 were $37.2 million, compared with $38.4 million at December 31, 2008.
In December 2008, Amtech's Board of Directors approved a stock repurchase program authorizing the repurchase of up to $4 million of its common stock. During the second quarter of fiscal 2009, Amtech repurchased approximately 144,000 shares of its common stock for $0.4 million in cash and at an average cost of $3.09 per share.
Outlook
While the current global economic and credit crisis has negatively impacted growth in the solar market in the near-term and prolonged the downturn in the semiconductor market, Amtech continues to have a long-term positive outlook on both industries. With a strong balance sheet and cash position, Amtech plans to emerge from this down cycle even stronger with its multi-product solar offerings.
While there appears to be some signs of increased activity in both the solar and semiconductor markets, visibility in second half of fiscal 2009 is currently unclear as the continuing global economic downturn has caused solar cell manufacturers, Amtech's principal solar customer base, to slow or push out their capacity expansion plans. Despite the anticipated downturn in revenues, Amtech expects to generate positive EBITDA (excluding impairment and restructuring charges) in fiscal 2009.
Operating results for future periods could be impacted by the timing of system shipments, the net impact of revenue deferral on those shipments, and recognition of revenue based on customer acceptances, all of which can have a significant effect on operating results.
Q2 fnancial highlights:
* Net revenue of $10.9 million, compared to $17.6 million in the prior year quarter: approximately $3 million of shipments scheduled for Q2 were pushed into Q3 and Q4, due primarily to delays in readiness of customer facilities.
* Solar revenue of $4.6 million, compared to $11.4 million in the prior year quarter.
* Gross margin of 22 percent, compared to 23 percent in the prior year quarter.
Impairment and restructuring charges of $1.7 million relating to Bruce Technologies, an Amtech subsidiary dependent on the semiconductor industry.
* Operating loss of $2.6 million, compared to an operating loss of $82,000 in the prior year quarter.
* Net loss of $2 million, or a loss of $0.22 per share, compared to net income of $161,000, or $0.02 per diluted share, in the prior year quarter.
* Quarter-end backlog of $34.7 million (solar $32.6 million).
* Repurchased approximately 144,000 shares of Amtech common stock during the quarter.
* Ending cash balance of $37.2 million at March 31, 2009, compared to $38.4 million at December 31, 2008.
Cost reduction actions
* Consolidated workforce has been reduced 22 percent since its peak at September 30, 2008
* Amtech executive officers and outside directors have taken a reduction in salary and board meeting fees, respectively, starting April 1, 2009
* Bruce Technologies subsidiary has been restructured
J.S. Whang, President and Chief Executive Officer of Amtech, commented: "As we previously announced, fiscal second quarter revenue reflects the push-out of approximately $3 million in shipments into subsequent quarters. To date we have not had any order cancellations of significance. We continue to be proactive in managing our operations to achieve our goal of positive EBITDA in fiscal 2009 (excluding restructuring and non-cash impairment charges), as evidenced by the 22 percent reduction in our workforce and the restructuring of one of our subsidiaries. Our financial position remains solid, with essentially no debt and a strong cash balance.
"We remain focused on executing our multi-product solar growth plan, including the introduction of our new solar etch product, which we expect to launch within the current fiscal third quarter. With this launch, we will begin offering three solar products, Diffusion + PSG Etch + PECVD (continuous sequential processing steps), which will further increase the size of our served available market. We are determined to emerge as a stronger player through the current down cycle, and continue to be optimistic about the long-term growth opportunities in the solar market as all fundamentals remain intact."
Net revenue for the second quarter of fiscal 2009 totaled $10.9 million, compared to net revenue of $17.6 million for the second quarter of fiscal 2008, and reflects lower shipments to the solar industry partially offset by increased shipments to the MEMS (microelectromechanical systems) segment of the semiconductor industry and recognition of previously deferred revenue.
Total orders for the quarter ended March 31, 2009 were $5.8 million ($3.0 million solar) before foreign exchange effect on backlog. At March 31, 2009, the Company's total order backlog was $34.7 million, compared to backlog of $42.4 million at December 31, 2008. Total backlog includes $32.6 million in solar orders, compared to solar backlog of $52.6 million at March 31, 2008. The effect of foreign exchange on backlog was $2.6 million in the March quarter and contributed to the decline in the backlog. Backlog includes deferred revenue and customer orders that are expected to ship within the next 12 months.
Gross margin in the second quarter of fiscal 2009 was 22%, compared to 23% in the second quarter of fiscal 2008, primarily reflecting lower shipment volumes and the related reduction in efficiencies and plant utilization. Amtech recognized $0.5 million of previously deferred profit for the quarter ended March 31, 2009, net of deferrals, compared to a net deferral of $0.7 million for the quarter ended March 31, 2008.
Selling, general and administrative (SG&A) expenses in the second quarter of fiscal 2009 decreased $0.9 million, or 22 percent, to $3.1 million, compared to $4.0 million in the second quarter of fiscal 2008. The decrease in expense is primarily due to decreased sales commissions on lower revenue generated in regions where third party sales agents are utilized.
In the second quarter of fiscal 2009, Amtech's Bruce Technologies semiconductor operations were restructured due to the continued slowdown in the semiconductor industry. As a result of the restructuring, Amtech recorded $0.6 million in restructuring charges and $1.1 million in non-cash goodwill and intangible asset impairment charges in the second quarter.
Depreciation and amortization in the second quarter of fiscal 2009 was $385,000, compared to $386,000 in the second quarter of fiscal 2008. Included in the second quarter fiscal 2009 results is $167,000 of stock option expense, compared to $128,000 in the second quarter a year ago.
As a result of a pretax loss, an income tax benefit of $580,000 was recorded in the second quarter of fiscal 2009 compared to a tax expense of $105,000 in the second quarter of fiscal 2008. The tax benefit was lower than our historical effective tax rate due primarily to an increase to the valuation allowance and permanent differences between financial income and taxable income.
The net loss for the second quarter of fiscal 2009 was $2.0 million, or a loss of $0.22 per share, compared to net income of $161,000, or $0.02 per diluted share, for the second quarter of fiscal 2008.
Total cash and cash equivalents at March 31, 2009 were $37.2 million, compared with $38.4 million at December 31, 2008.
In December 2008, Amtech's Board of Directors approved a stock repurchase program authorizing the repurchase of up to $4 million of its common stock. During the second quarter of fiscal 2009, Amtech repurchased approximately 144,000 shares of its common stock for $0.4 million in cash and at an average cost of $3.09 per share.
Outlook
While the current global economic and credit crisis has negatively impacted growth in the solar market in the near-term and prolonged the downturn in the semiconductor market, Amtech continues to have a long-term positive outlook on both industries. With a strong balance sheet and cash position, Amtech plans to emerge from this down cycle even stronger with its multi-product solar offerings.
While there appears to be some signs of increased activity in both the solar and semiconductor markets, visibility in second half of fiscal 2009 is currently unclear as the continuing global economic downturn has caused solar cell manufacturers, Amtech's principal solar customer base, to slow or push out their capacity expansion plans. Despite the anticipated downturn in revenues, Amtech expects to generate positive EBITDA (excluding impairment and restructuring charges) in fiscal 2009.
Operating results for future periods could be impacted by the timing of system shipments, the net impact of revenue deferral on those shipments, and recognition of revenue based on customer acceptances, all of which can have a significant effect on operating results.
Sunday, March 15, 2009
SemiconWorld -- social networking site for semicon professionals
Friends, I have recently started a small social networking site -- SemiconWorld -- on Ning. SemiconWorld will aim to connect semiconductor and electronics professionals, and facilitate discussions on key business and other industry issues.
Ever since I started this blog, I have made several friends from all over the world! Most of them have gone on to have long discussions with me on semiconductors and electronics. So, when I looked around on the Internet, I found that there weren't many social networking sites for semiconductor and electronics professionals. Hence, I thought of developing one.
Even as I have been developing this site, some good friends, such as Uma Mahesh Sir, Jo Kuo, Ms Poornima Shenoy of ISA, Sandip Dhawan, Alfred Cheng, Rahul Prabhakar, Ian Shelley, Priyanka Kalia, Kiran Kumar and Tiffany Yeh, have already joined the SemiconWorld network. A very warm thanks to all of you, folks!
It is always good to hear the perspectives and perceptions of others. That's how I have tried to learn about the various technologies we read about all the time! And, I am still learning! It is my sincere hope and wish that my friends join me and we can have great and very useful discussions on various topics and issues related to these high-tech industries.
Why did I choose Ning for such a site? Well, I happen to be a member of the TelecomYou network on Ning - a social networking site for telecom professionals. There, I found members participating in discussions and friendly chats, post blogs about various things, and even look for jobs! I don't know how to add jobs to this site, but if someone can lead me to a site, which can allow me to post a job widget, I'd be glad to do so.
For those interested in events, Future Horizon's International Electronics Forum (IEF) 2009, will be held from May 6 to May 8, 2009, in Geneva, Switzerland. I've added a link to event, in case you wish to look that up.
I have also provided several key industry links for those keen on looking up information related to semiconductors, electronics and technologies. I can add a whole lot of stuff on to this page. Maybe, all that will happen over a period of time. Till then, enjoy networking, dear friends! Hope you like SemiconWorld!
Ever since I started this blog, I have made several friends from all over the world! Most of them have gone on to have long discussions with me on semiconductors and electronics. So, when I looked around on the Internet, I found that there weren't many social networking sites for semiconductor and electronics professionals. Hence, I thought of developing one.
Even as I have been developing this site, some good friends, such as Uma Mahesh Sir, Jo Kuo, Ms Poornima Shenoy of ISA, Sandip Dhawan, Alfred Cheng, Rahul Prabhakar, Ian Shelley, Priyanka Kalia, Kiran Kumar and Tiffany Yeh, have already joined the SemiconWorld network. A very warm thanks to all of you, folks!
It is always good to hear the perspectives and perceptions of others. That's how I have tried to learn about the various technologies we read about all the time! And, I am still learning! It is my sincere hope and wish that my friends join me and we can have great and very useful discussions on various topics and issues related to these high-tech industries.
Why did I choose Ning for such a site? Well, I happen to be a member of the TelecomYou network on Ning - a social networking site for telecom professionals. There, I found members participating in discussions and friendly chats, post blogs about various things, and even look for jobs! I don't know how to add jobs to this site, but if someone can lead me to a site, which can allow me to post a job widget, I'd be glad to do so.
For those interested in events, Future Horizon's International Electronics Forum (IEF) 2009, will be held from May 6 to May 8, 2009, in Geneva, Switzerland. I've added a link to event, in case you wish to look that up.
I have also provided several key industry links for those keen on looking up information related to semiconductors, electronics and technologies. I can add a whole lot of stuff on to this page. Maybe, all that will happen over a period of time. Till then, enjoy networking, dear friends! Hope you like SemiconWorld!
Friday, March 13, 2009
Time for Indian semicon to step up! Yes or No?
I was really happy to see a comment on my blog post: What India now offers to the global semicon industry, left by Tom Morrow, author of the SEMISpice blog, and Vice President of Global Expositions and Marketing, SEMI. Thanks for visiting and commenting, Tom.
You said: Your description of India's Special Incentives Package Schemes for setting up and operating semiconductor fabrication as a "debacle" is off the mark. Is it really wise for the country to join an already crowded semiconductor manufacturing ecosystem when it can apply its scarce resources to join 30-50 year boom in solar, something the country desperately needs for both domestic and export development?"
"The move to solar is the right one. India had nine manufacturers of solar cells and about twice as many module makers. Most of these proposals have been in response to the Government’s announcement of a Special Incentives Package Scheme under the 2007 Semiconductor Policy.
"About 70 percent of India’s solar cell and PV module production has been exported. This is likely to change in the near future as government policy provides the push for PV deployment and following the recent release of guidelines for grid connected solar generation. Several states in India, including Andhra Pradesh, Gujarat, Karnataka, Punjab, Rajasthan and West Bengal have also announced their own solar policies, plans and incentive packages in recent months.
"ISA and SEMI has recognized the great opportunities in solar and have taken supportive leadership positions. While both organizations would love to see a domestic semi fab industry emerge in India, given the overcapcity in the industry today, the transition to solar has been swift, thoughtful, and right on the mark."
First up, Tom, I did not formulate SIPS or the Indian semicon policy! I too thought India would soon build a wafer IC fab! Several delegations have visited India, in the past, with companies hoping to work with these so-called wafer IC fabs in India. I am merely a small time blogger, offering my opinions. And I love my country, no less than any other Indian!
Perhaps, you should see some of the press these 'so-called fabs' received! All the talk of a wafer IC fab only died down with SemIndia late last year!
If folks read my posts carefully, I've discussed how India has been doing fine before the semicon policy and post the policy, fab or no fab! Some knowledgeable experts have even said that fabless India shines brightly! It has shone before, and continues to do so!
Neither do I have anything against solar and the solar industry! It is a great way to trigger off manufacturing in India. Did I say otherwise?
I work closely with ISA, in fact, was present, when ISA was born, back in October 2004, and also know Sathya Prasad at SEMI India quite well. It's a great initiative that's going on in solar in this country. So, yes, the move to solar is a very correct one!
Still on wafer IC fabs, one expert even goes on to say that India could look at skipping the current node of technology and make an entry into the one that will be prevalent after few years.
However, my focus is essentially on semiconductor manufacturing! As many industry experts never fail to say at conferences, India needs to move up the semicon value chain! We need more semicon product start-ups!! And, that's not happening fast enough!
Perhaps, we can just discard all of these ideas and go on being a leading player in design services (which, we already are), a much easier option.
I would still go with what Malcolm Penn of Future Horizons' says, that India needs to re-think its semiconductor strategy! It cannot survive on chip design alone!
Even the recently held ISA Vision Summit had a session: Indian design influence: Ideas to volume! Speakers discussed how India should seize opportunities, especially in this downturn, and that, it is time for the Indian semiconductor industry to step up, put the right innovations in place and grow.
I am very interested in hosting an event in India on this topic -- Time for India to step up: Put right innovations in place and grow! However, as I said, I am merely a small time blogger, trying to make a living. I hope I can find some support to host such an event at least once in India.
I am simply delighted that my post has drawn the interest of such a senior person at SEMI. Thank you, sir!
You said: Your description of India's Special Incentives Package Schemes for setting up and operating semiconductor fabrication as a "debacle" is off the mark. Is it really wise for the country to join an already crowded semiconductor manufacturing ecosystem when it can apply its scarce resources to join 30-50 year boom in solar, something the country desperately needs for both domestic and export development?"
"The move to solar is the right one. India had nine manufacturers of solar cells and about twice as many module makers. Most of these proposals have been in response to the Government’s announcement of a Special Incentives Package Scheme under the 2007 Semiconductor Policy.
"About 70 percent of India’s solar cell and PV module production has been exported. This is likely to change in the near future as government policy provides the push for PV deployment and following the recent release of guidelines for grid connected solar generation. Several states in India, including Andhra Pradesh, Gujarat, Karnataka, Punjab, Rajasthan and West Bengal have also announced their own solar policies, plans and incentive packages in recent months.
"ISA and SEMI has recognized the great opportunities in solar and have taken supportive leadership positions. While both organizations would love to see a domestic semi fab industry emerge in India, given the overcapcity in the industry today, the transition to solar has been swift, thoughtful, and right on the mark."
First up, Tom, I did not formulate SIPS or the Indian semicon policy! I too thought India would soon build a wafer IC fab! Several delegations have visited India, in the past, with companies hoping to work with these so-called wafer IC fabs in India. I am merely a small time blogger, offering my opinions. And I love my country, no less than any other Indian!
Perhaps, you should see some of the press these 'so-called fabs' received! All the talk of a wafer IC fab only died down with SemIndia late last year!
If folks read my posts carefully, I've discussed how India has been doing fine before the semicon policy and post the policy, fab or no fab! Some knowledgeable experts have even said that fabless India shines brightly! It has shone before, and continues to do so!
Neither do I have anything against solar and the solar industry! It is a great way to trigger off manufacturing in India. Did I say otherwise?
I work closely with ISA, in fact, was present, when ISA was born, back in October 2004, and also know Sathya Prasad at SEMI India quite well. It's a great initiative that's going on in solar in this country. So, yes, the move to solar is a very correct one!
Still on wafer IC fabs, one expert even goes on to say that India could look at skipping the current node of technology and make an entry into the one that will be prevalent after few years.
However, my focus is essentially on semiconductor manufacturing! As many industry experts never fail to say at conferences, India needs to move up the semicon value chain! We need more semicon product start-ups!! And, that's not happening fast enough!
Perhaps, we can just discard all of these ideas and go on being a leading player in design services (which, we already are), a much easier option.
I would still go with what Malcolm Penn of Future Horizons' says, that India needs to re-think its semiconductor strategy! It cannot survive on chip design alone!
Even the recently held ISA Vision Summit had a session: Indian design influence: Ideas to volume! Speakers discussed how India should seize opportunities, especially in this downturn, and that, it is time for the Indian semiconductor industry to step up, put the right innovations in place and grow.
I am very interested in hosting an event in India on this topic -- Time for India to step up: Put right innovations in place and grow! However, as I said, I am merely a small time blogger, trying to make a living. I hope I can find some support to host such an event at least once in India.
I am simply delighted that my post has drawn the interest of such a senior person at SEMI. Thank you, sir!
Wednesday, December 3, 2008
My blog is the world's best!
Wow! I am overwhelmed!
This morning, when I stepped into the office, I'd no clue what lay ahead. This blog had been recently nominated in Electronics Weekly.com's first ever Electronics Blog Awards 2008, under the Electronic Hardware category.
My blog was declared the winner in this category!.
Several friends and well wishers have requested me to post an image about the winner's announcement page, so here it is!
All of the other bloggers in the list are equally worthy, and they are all winners. My heartiest congratulations to all of my fellow nominees. I haven't even met anyone of you, ever! Hope I can, some time soon.
I've always maintained that love writing (or blogging) about things that are close to my heart. Semicon and telecom are prime in that category, two topics that I am really very fond of.
My blog -- well, it all started as a regular affair. There are a whole lot of great bloggers out there, who also write on similar topics. I was and am just one among those. Nor was and am I ever looking for traffic, etc., as it is my contention that people will only stop by and read your blog post or article IF there's something of interest to them. So, I was my only reader ;) I thought!
I didn't even realize that so many people would be reading my blog posts. Well, things changed somewhere, I don't know how. Wish I could thank everyone personally!
Thanks, dear friends, for stopping by my blog occasionally. I just don't have words to express myself.
All I can say is a big thank you to Electronics Weekly for picking up my blog. Thanks to the person who nominated my blog, as I've no idea who nominated it. Thanks also to Google for creating the Blogspot platform so that people like me can blog. Many thanks to all of those friends, well wishers and readers who voted for me. Hope you all find my blog useful.
Dear friends and readers, please keep those suggestions coming so I can strive to improve myself even further over time.
P.S. A former colleague and close friend, Debashish Choudhury, has also added a link on Global SMT site. The link is given here. Thanks Debu for the honor! ;)
Cybermedia/CIOL, very kindly, posted a news release announcing my victory. Many thanks for to CIOL and Cybermedia.
Later, in the evening, Pradeep Gupta, CyberMedia's managing director, sent out an email to the entire company, announcing my win. Thanks a lot for this very nice and touching gesture, Sir.
Finally, Electronics Weekly sent a mail to me saying: "You were the clear winner in your category, so congratulations! If I may, I'll send you a 'Blog Awards, Winner' badge for your blog, to commemorate the victory!" Thanks to Electronics Weekly again!
This morning, when I stepped into the office, I'd no clue what lay ahead. This blog had been recently nominated in Electronics Weekly.com's first ever Electronics Blog Awards 2008, under the Electronic Hardware category.
My blog was declared the winner in this category!.
Several friends and well wishers have requested me to post an image about the winner's announcement page, so here it is!
All of the other bloggers in the list are equally worthy, and they are all winners. My heartiest congratulations to all of my fellow nominees. I haven't even met anyone of you, ever! Hope I can, some time soon.I've always maintained that love writing (or blogging) about things that are close to my heart. Semicon and telecom are prime in that category, two topics that I am really very fond of.
My blog -- well, it all started as a regular affair. There are a whole lot of great bloggers out there, who also write on similar topics. I was and am just one among those. Nor was and am I ever looking for traffic, etc., as it is my contention that people will only stop by and read your blog post or article IF there's something of interest to them. So, I was my only reader ;) I thought!
I didn't even realize that so many people would be reading my blog posts. Well, things changed somewhere, I don't know how. Wish I could thank everyone personally!
Thanks, dear friends, for stopping by my blog occasionally. I just don't have words to express myself.
All I can say is a big thank you to Electronics Weekly for picking up my blog. Thanks to the person who nominated my blog, as I've no idea who nominated it. Thanks also to Google for creating the Blogspot platform so that people like me can blog. Many thanks to all of those friends, well wishers and readers who voted for me. Hope you all find my blog useful.
Dear friends and readers, please keep those suggestions coming so I can strive to improve myself even further over time.
P.S. A former colleague and close friend, Debashish Choudhury, has also added a link on Global SMT site. The link is given here. Thanks Debu for the honor! ;)
Cybermedia/CIOL, very kindly, posted a news release announcing my victory. Many thanks for to CIOL and Cybermedia.
Later, in the evening, Pradeep Gupta, CyberMedia's managing director, sent out an email to the entire company, announcing my win. Thanks a lot for this very nice and touching gesture, Sir.
Finally, Electronics Weekly sent a mail to me saying: "You were the clear winner in your category, so congratulations! If I may, I'll send you a 'Blog Awards, Winner' badge for your blog, to commemorate the victory!" Thanks to Electronics Weekly again!
Tuesday, October 14, 2008
Top 20 global solar photovoltaic companies
Alright folks! This has taken some time coming, but it is worth the wait! Presenting the Top 20 solar photovoltaic companies during Q1-2008. May I add here that I am extremely grateful to iSuppli's Jon Cassell for giving me this opportunity.
I was also fortunate enough to discuss this table with Dr. Henning Wicht, Senior Director, Principal Analyst, iSuppli Deutschland GmbH, in Munich, Germany.
Parameters for rankings
First up, what were the parameters used by iSuppli to determine the top 20? According to Dr. Wicht, the top 20 cell-companies have been ranked by production in 2007 and by announced production capacity 2010. He clarified, "Ranking by revenue is not applicable because many integrated manufactures publish compound revenues for cells, modules and systems."
Yes, there have been several announcements in the solar/PV space, in India, and globally, and some names could be missing here. However, the new cell manufacturing projects will be included as soon as they are announced.
Coming back to the topic, it is necessary to examine the role of subsidies. While photovoltaics have been getting cheaper, Dr. Wicht said that subsidies were still necessary to support the PV markets. "It shows that the time grid parity shortens faster than expected earlier. As an example, for Germany, the grid parity might be achieved in 2015, which is two years earlier than expected in 2007."
That is to say, the support programs are benefical, both to support markets to become independent sustainable and to develop the regional industry.
Global interest in solar/PV
Critically, there seems to have developed a sudden interest in solar/PV, starting late 2007, when this (solar) has been around for some time. How has this happened?
According to Dr. Wicht, raising CO2 levels generated through fossil energy, CO2 certificates, rising prices of fossil fuels, political dependency from oil exporting countries drove the Kyoto protocol to reduce CO2.
"Renewable energy is a major pillar to achieve that goal. European governments have been frontrunners to implement and execute that goal. That said, solar has been around for a while. Japan was the first significant market. However, on a global basis, it took off in Europe from 2005 onward," he noted.
With the spate of initiatives in solar/PV, can it not turn out to be a case of too many folks entering the same line?
Sure, over and undersupply happens along the supply chain! The iSuppli market research figures out imbalances, which drive prices/margins up and down.
Also, isn't there a chance of solar/PV getting commoditized, or has it already become one? Well, PV modules are a commodity product, said the analyst. The market is still in its infancy and it will continue to grow for the next 10 years and further. The overall saturation will come, but still some years to go.
Is solar helping semicon?
Some industry folks have been saying that the solar/PV initiatives are not really helping the overall semicon industry, a statement I agree with as well. Also, it may only be benefitting some of the equipment makers.
Dr. Wicht said: "Indeed, semicon fabs are not able to produce competitively solar cells and the solar need for semiconductor devices is rather low. The semiconductor companies, however diversify into PV, e.g., Qimonda with a new cell production. Intel is investing in several PV companies, LG is investing in Conergy, etc., or supplying devices for power conversion, e.g, National Semiconductor. However, the overall impact on the semicon devices market is rather low!
Solar, semicon on par?
iSuppli made a forecast some time back regarding investments in solar and semiconductors being on par by 2010.
The investments for solar cell production raising up to several hundreds of Mio USD, up to 1 Bio $ per production site. That is coming close to a semiconductor fab. The total capex of semiconductor is still 10 times larger than PV. However, PV is rising much faster.
I was also fortunate enough to discuss this table with Dr. Henning Wicht, Senior Director, Principal Analyst, iSuppli Deutschland GmbH, in Munich, Germany.
Parameters for rankingsFirst up, what were the parameters used by iSuppli to determine the top 20? According to Dr. Wicht, the top 20 cell-companies have been ranked by production in 2007 and by announced production capacity 2010. He clarified, "Ranking by revenue is not applicable because many integrated manufactures publish compound revenues for cells, modules and systems."
Yes, there have been several announcements in the solar/PV space, in India, and globally, and some names could be missing here. However, the new cell manufacturing projects will be included as soon as they are announced.
Coming back to the topic, it is necessary to examine the role of subsidies. While photovoltaics have been getting cheaper, Dr. Wicht said that subsidies were still necessary to support the PV markets. "It shows that the time grid parity shortens faster than expected earlier. As an example, for Germany, the grid parity might be achieved in 2015, which is two years earlier than expected in 2007."
That is to say, the support programs are benefical, both to support markets to become independent sustainable and to develop the regional industry.
Global interest in solar/PV
Critically, there seems to have developed a sudden interest in solar/PV, starting late 2007, when this (solar) has been around for some time. How has this happened?
According to Dr. Wicht, raising CO2 levels generated through fossil energy, CO2 certificates, rising prices of fossil fuels, political dependency from oil exporting countries drove the Kyoto protocol to reduce CO2.
"Renewable energy is a major pillar to achieve that goal. European governments have been frontrunners to implement and execute that goal. That said, solar has been around for a while. Japan was the first significant market. However, on a global basis, it took off in Europe from 2005 onward," he noted.
With the spate of initiatives in solar/PV, can it not turn out to be a case of too many folks entering the same line?
Sure, over and undersupply happens along the supply chain! The iSuppli market research figures out imbalances, which drive prices/margins up and down.
Also, isn't there a chance of solar/PV getting commoditized, or has it already become one? Well, PV modules are a commodity product, said the analyst. The market is still in its infancy and it will continue to grow for the next 10 years and further. The overall saturation will come, but still some years to go.
Is solar helping semicon?
Some industry folks have been saying that the solar/PV initiatives are not really helping the overall semicon industry, a statement I agree with as well. Also, it may only be benefitting some of the equipment makers.
Dr. Wicht said: "Indeed, semicon fabs are not able to produce competitively solar cells and the solar need for semiconductor devices is rather low. The semiconductor companies, however diversify into PV, e.g., Qimonda with a new cell production. Intel is investing in several PV companies, LG is investing in Conergy, etc., or supplying devices for power conversion, e.g, National Semiconductor. However, the overall impact on the semicon devices market is rather low!
Solar, semicon on par?
iSuppli made a forecast some time back regarding investments in solar and semiconductors being on par by 2010.
The investments for solar cell production raising up to several hundreds of Mio USD, up to 1 Bio $ per production site. That is coming close to a semiconductor fab. The total capex of semiconductor is still 10 times larger than PV. However, PV is rising much faster.
Friday, September 12, 2008
Synopsys' Dr Chi-Foon Chan on India, low power design and solar
There have been reports about the troubles within the EDA industry in recent times, especially those related with quarter sales. Interestingly, Synopsys has been the one sailing along fine! If that's not enough, it made its intention known of playing a role on the solar/PV segment, an area where lot of investments have been happening!
Given this scenario, I was fortuitous enough, rather, extremely lucky to be able to get into a conversation with Dr. Chi-Foon Chan, President and Chief Operating Officer, Synopsys Inc., during his recent visit to India.
On the state of the global semiconductor industry, he said, it was somewhere now in the low 10s [well below 10 percent]. The EDA industry is currently tracking below that level. However, Synopsys has been growing at around 10 percent. He said, "The technology challenges today are very high."
Synopsys has a substantial number of R&D population based out of India. Giving his assessment of the Indian semiconductor industry, Dr. Chan added: "Our main interest in India is largely talent and the academia. India can very well get more into the product development side. Even the outsourcing of designs have increased. Our capabilities, of the Indian team, have also increased."
As with any good semiconductor ecosystem, the Indian industry also needs a proactive industry association, a role played to near perfection by the ISA (India Semiconductor Association). Acknowledging the ISA's role, Dr. Chan said, "The ISA has also formed a very cohesive team."
There is little doubt about India's growing importance in technology strengths and managerial leadership. Dr. Chan added: "We are more on the high-end side and also track what others design. In India, the profiles of designs are definitely high-end in nature. This is largely due to the presence of a large number of MNCs. A very high percentage of designs are in the 45nm and 65nm process technology nodes."
There is another significant indicator of India's growing importance, and that is the huge rise in the attendance of the SNUG. In 2000, this event attracted 180 people. However, in 2008, the SNUG attracted over 2,000 people.
Moving India to next level
Given the very high level of commitment on Synopsys' part toward India, there was a need to find out from Dr. Chan what exactly India needs to do to move to the next level in the value chain in the semiconductor ecosystem.
He advised: "India can do two to three things. One, for the system to grow, you need the government, academia and industry to grow together. India has all of the ingredients required to drive products."
Comparing India with China, he highlighted the fact that while in China, the local consumption was higher than local supply, that was not the case with India!
"Therefore, looking at merely the local market is not the only thing. Products developed here can also be targeted at the Middle East and Southeast Asia." He was quite forthright in his analysis, adding: "Industries start when you find markets. The skill sets are already present here. There can well be multiple startups."
Dr. Chan also touched upon the fab vs. fabless issue, noting that there could well be more of fabless companies in India. "Building a fab requires lot of capital. Also, consolidation will continue to happen."
What role does Dr. Chan see Synopsys playing in the Indian context? He said: "Synopsys will continue to be a catalyst for the industry. A healthy design industry in India continues to help us. We also work well with the Indian universities. Having more people from the universities will always help. We also invest a lot in application support. The application team also trains others. I now look forward to seeing more fabless companies here and India to become even more global."
On low power design
India is also a centre of expertise in low power design, given that low power is hugely important in today's electronics ecosystem. Dr. Chan commented that low power has always been the number one design issue. It cannot be taken care of at one single stage.
He added: "A slightly new concept that has emerged is low-power verification. There are so many schemes for attacking low power, such as multiple voltage islands. We (Synopsys) are spending a lot of effort in low power.
"As a designer, you require detailed analysis. Low-power verification is now coming up. Another area is testing. As an example, if so much power is required, how do you have the power cut from the tool you are using to test? From a Synopsys point of view, we are involved in several points, such as front-end synthesis, testing, sign-off, verification, etc. We are trying to put in a whole lot of methodologies."
Synopsys in solar
EDA may be able to help by lowering power requirements and leakage on better products. Especially, the Synopsys' TCAD product can be used to create more efficient and effective solar cells. Now, this is not a new development anymore. Synopsys, along with Magma, have already made known their intentions about setting foot in the solar/PV space.
On the TCAD, Dr. Chan said: "We have a very strong position in the TCAD, commercially. Now, it is one of our most critical elements in high-performance. Our TCAD is among the strongest in the EDA industry.
"In solar, it does not have to be a complicated place-and-route, etc. From an entire solar industry point of view, we have now used some effort from TCAD into this space. Heat transfer issues, etc., are more in the EDA space."
I will continue my conversation with Synopsys on its solar initiative sometime later. Keep watching this space, folks
Given this scenario, I was fortuitous enough, rather, extremely lucky to be able to get into a conversation with Dr. Chi-Foon Chan, President and Chief Operating Officer, Synopsys Inc., during his recent visit to India.On the state of the global semiconductor industry, he said, it was somewhere now in the low 10s [well below 10 percent]. The EDA industry is currently tracking below that level. However, Synopsys has been growing at around 10 percent. He said, "The technology challenges today are very high."
Synopsys has a substantial number of R&D population based out of India. Giving his assessment of the Indian semiconductor industry, Dr. Chan added: "Our main interest in India is largely talent and the academia. India can very well get more into the product development side. Even the outsourcing of designs have increased. Our capabilities, of the Indian team, have also increased."
As with any good semiconductor ecosystem, the Indian industry also needs a proactive industry association, a role played to near perfection by the ISA (India Semiconductor Association). Acknowledging the ISA's role, Dr. Chan said, "The ISA has also formed a very cohesive team."
There is little doubt about India's growing importance in technology strengths and managerial leadership. Dr. Chan added: "We are more on the high-end side and also track what others design. In India, the profiles of designs are definitely high-end in nature. This is largely due to the presence of a large number of MNCs. A very high percentage of designs are in the 45nm and 65nm process technology nodes."
There is another significant indicator of India's growing importance, and that is the huge rise in the attendance of the SNUG. In 2000, this event attracted 180 people. However, in 2008, the SNUG attracted over 2,000 people.
Moving India to next level
Given the very high level of commitment on Synopsys' part toward India, there was a need to find out from Dr. Chan what exactly India needs to do to move to the next level in the value chain in the semiconductor ecosystem.
He advised: "India can do two to three things. One, for the system to grow, you need the government, academia and industry to grow together. India has all of the ingredients required to drive products."
Comparing India with China, he highlighted the fact that while in China, the local consumption was higher than local supply, that was not the case with India!
"Therefore, looking at merely the local market is not the only thing. Products developed here can also be targeted at the Middle East and Southeast Asia." He was quite forthright in his analysis, adding: "Industries start when you find markets. The skill sets are already present here. There can well be multiple startups."
Dr. Chan also touched upon the fab vs. fabless issue, noting that there could well be more of fabless companies in India. "Building a fab requires lot of capital. Also, consolidation will continue to happen."
What role does Dr. Chan see Synopsys playing in the Indian context? He said: "Synopsys will continue to be a catalyst for the industry. A healthy design industry in India continues to help us. We also work well with the Indian universities. Having more people from the universities will always help. We also invest a lot in application support. The application team also trains others. I now look forward to seeing more fabless companies here and India to become even more global."
On low power design
India is also a centre of expertise in low power design, given that low power is hugely important in today's electronics ecosystem. Dr. Chan commented that low power has always been the number one design issue. It cannot be taken care of at one single stage.
He added: "A slightly new concept that has emerged is low-power verification. There are so many schemes for attacking low power, such as multiple voltage islands. We (Synopsys) are spending a lot of effort in low power.
"As a designer, you require detailed analysis. Low-power verification is now coming up. Another area is testing. As an example, if so much power is required, how do you have the power cut from the tool you are using to test? From a Synopsys point of view, we are involved in several points, such as front-end synthesis, testing, sign-off, verification, etc. We are trying to put in a whole lot of methodologies."
Synopsys in solar
EDA may be able to help by lowering power requirements and leakage on better products. Especially, the Synopsys' TCAD product can be used to create more efficient and effective solar cells. Now, this is not a new development anymore. Synopsys, along with Magma, have already made known their intentions about setting foot in the solar/PV space.
On the TCAD, Dr. Chan said: "We have a very strong position in the TCAD, commercially. Now, it is one of our most critical elements in high-performance. Our TCAD is among the strongest in the EDA industry.
"In solar, it does not have to be a complicated place-and-route, etc. From an entire solar industry point of view, we have now used some effort from TCAD into this space. Heat transfer issues, etc., are more in the EDA space."
I will continue my conversation with Synopsys on its solar initiative sometime later. Keep watching this space, folks
Saturday, May 24, 2008
Dubai -- an emerging silicon oasis
Don't be surprised if you wake up one day and read a headline that heralds the coming of age of Dubai as a silicon frontier! The government of Dubai has been efficiently and effectively taking the necessary steps required to make that happen. It has set up the Dubai Silicon Oasis Authority (DSOA) as the engine for propelling Dubai into the knowledge economy.H.H. Sheikh Mohammed bin Rashid Al Maktoum Ruler of Dubai, Vice President and Prime Minister of the UAE, Ruler of Dubai, said, "Our vision is to make Dubai Silicon Oasis one of the world's leading centers of advanced electronics innovation, design and development."
Economy and business destination
Dubai boasts of a robust economy, the GDP being $53.8B in 2007. The GDP has a very low dependency on oil, which was >5 percent in 2006, a fact not well known to many. While it has a small population of just 1.42 million, people from other nationalities -- a total of 185 -- comprise a whopping 1.2 million or so.
Dubai is now counted among the world's top financial centers, boasting of world-class infrastructure, state-of-the-art telecom, and already a home to 139 major Fortune 500 regional offices.
Dubai also boasts of the world's fastest growing airport, which is located near Deira. A new airport, with six parallel runways, is under construction near Jebel Ali. Dubai also hast two seaports, including the world's largest man made port in Jebel Ali.
The Dubai Metro project is also underway. If this is not enough to propel the city as a leading business destination, Dubai also has highly superior logistic facilities -- all major cargo services operate out of here., besides reliable power and utilities, and state-of-the-art IT and telecom infrastructure.
Some major international investments in the UAE region make very interesting reading. For instance, Abu Dhabi has an 8.1 percent stake in Advanced Micro Devices (AMD). Abu Dhabi also has 4.9 percent stake in Citigroup. Dubai Holdings has major investments in Daimler AG (2 percent), EADS (3.12 percent), and Tussauds Group (20 percent). The DIFX has a major stake in both NASDAQ and OMX.
The UAE itself is a regional powerhouse. UAE ranks #28, highest in the Arab world, compared to Israel #19 and Egypt #63. It is also the second largest MENA market for PCs -- 594K units vs. 684K for Saudi Arabia, as per IDC.
DSOA's value propositions
The DSOA was set up to create a universally recognized state-of-the-art technology oasis by facilitating and promoting technology-based industries, and R&D, within a fully integrated community. DSO is a technology-centric free zone. The Dubai Silicon Oasis is spread over 7.2sqkm. In fact, Dr. Jihad Kiwan, director, DSOA, pointed out that the DSOA was large enough to fit in eight wafer fabs!
The DSOA offers multiple value propositions. In terms of financial incentives, it offers full repatriation of capital and profit, 100 percent ownership, zero corporate tax for 49 years, which is renewable, and most importantly, zero income tax for 49 years, also renewable.
If this isn't enough, the DSOA offers lower cost operations for technology companies, besides subsidized staff accommodations for R&D engineers. Throw in stringent IP laws, direct investment and support the creation of the DSOA tenants' business ecosystem, and you have the complete package.
Technology hub
The DSO is fast becoming a hub for technology R&D activities in the region, and is also the home of regional HQ of major electronics companies. It currently has 119 tenants, as of early May 2008.
The entire ecosystem is being built within the DSOA. It is an emerging residential area, and will also be home to RIT Dubai, BITS Pilani Dubai, and GEMS Smart School. Add to this theme parks, golf clubs, seven-star hotels, etc. It is more of a fully 'integrated city" purpose built by the government of Dubai, where its residents can work, live, learn and play.
Silicon and other activities
A variety of activities are promoted at the DSOA. In the microelectronics domain, there are activities related to IC design, EDA tools, semiconductor manufacturing, semiconductor assembly & test, as well as photovoltaics (PV).
Other general activities, not covering the semiconductors, include IT and IT security, telecom equipment, electronic and computer hardware, software development and solutions, nanotechnology, consultancy and business development, logistics, as well as talent development and recruitment.
The DSOA also houses the German Business Park and the Rochester Institute of Technology (RIT), Dubai. It has also made alliances with Synopsys, the EDA powerhouse, the American University of Sharjah, UAE University, University of Sharjah, BITS Pilani Dubai and Khalifa University.
The key business benefits of aligning with the DSO include access to a regional pool of talent, zero tax policy, competitive operating costs, and access to a regional market of 2 billion people. It also offers diverse support for creating R&D centers of Excellence.
Dubai Circuit Design
The Dubai Circuit Design (DCD) is one of the tenants within the DSOA with a vision to be the regional leading force for chip design innovation. DCD aims to provide customers with predictable chip design services and create a collaborative environment for its skilled engineers, which fosters creativity and innovation, while empowering them with the DSOA's state-of-the-art computing infrastructure.
The DCD incidentally has an alliance with Synopsys. It allows the DCD to have easy access to cutting-edge EDA tools, IP, wide range of resources, as well as Design Sphere Access (state-of-the-art data center).
The 10-member chip design team at the DCD comprises various nationalities -– India, Morocco, Tunisia, Egypt -- has already taped out one 65nm design. The team itself comes from leading semiconductor companies, such as Intel, Texas Instruments, Qualcomm, Wipro and ST Microelectronics, with an average experience of eight to 10 years.
The design team is experienced in areas such as front-end design, back-end physical design, design flow methodology, design for testability (DFT), etc.
The DCD offers a variety of IC design services (RTL to GDSII), supporting all technology nodes -- 65nm and below. It also has strong expertise in designing complex, multi-million gate, low power and performance-critical designs. DCD can also undertake foundry interface on behalf of the customers.
It also offers consultancy -- on-site or from the design center. This includes areas such as complete DFT solution, physical design, timing/power signoff, physical verification, reliability verification and extraction, full-chip feasibility analysis and area reduction, IP integration, full-chip feasibility analysis and area reduction, etc.
The DCD design team has done an SMC (scalable metrics chip) implementation. This was done using TSMC's 65nm low power (LP) technology. The encryption/decryption engine has ~ 8 million gates with 70 memory macros.
Other details of the project include dual core voltage (1.2v/0.96v) and IOs at 3.3v, wire bond design with 172 pads, 3.5x3.5 mm2 die size, 333Mhz/100Mhz design speed, as well as DFT (scan, ATPG, memory BIST, JTAG test interface).
Friday, November 2, 2007
Indian hardware policy to address infrastructure issues
Following the success of India's semiconductor policy, the government of India is well on its way to announce a new hardware manufacturing policy, hopefully sometime this month.
According to M. Madhavan Nambiar, Additional Secretary, Ministry of Communications & Information Technology, Department of Information Technology, the hardware policy should be coming shortly, where, the government is looking to address infrastructure related issues.
Speaking with him on the sidelines of the Thought Leader Series organized by the India Semiconductor Association (ISA), he said the hardware policy would still take some time. "As a part of it, we are looking at IT investment regions." These would be set up in 40km areas, and each region would be an entire ecosystem in itself.
Nambiar added: "We are also looking at very good public-private partnerships. We have to develop the manpower." The Department is working with the Labour Ministry and other organizations in order to set up skill development units. It is necessary for skiils to keep pace with technology.
The to-be-announced hardware policy will also be looking at taxes, etc. "It is a recommendation that we are making," he said. "For India to be able to attract investments, we nust ensure that we are the best in class."
Touching upon the semiconductor policy, he said it was important that this policy was pro-active and friendly. "We need to see how best to provide comfort levels to those investing," Nambiar said.
It was necessary to have a strong semiconductor industry in India, as all leading countries, such as the USA, China, Taiwan and Japan had equally strong semiconductor industries. There has since been lot of interest in fabs and ecosystem units, and some of those were in the process of being set up.
According to M. Madhavan Nambiar, Additional Secretary, Ministry of Communications & Information Technology, Department of Information Technology, the hardware policy should be coming shortly, where, the government is looking to address infrastructure related issues.
Speaking with him on the sidelines of the Thought Leader Series organized by the India Semiconductor Association (ISA), he said the hardware policy would still take some time. "As a part of it, we are looking at IT investment regions." These would be set up in 40km areas, and each region would be an entire ecosystem in itself.
Nambiar added: "We are also looking at very good public-private partnerships. We have to develop the manpower." The Department is working with the Labour Ministry and other organizations in order to set up skill development units. It is necessary for skiils to keep pace with technology.
The to-be-announced hardware policy will also be looking at taxes, etc. "It is a recommendation that we are making," he said. "For India to be able to attract investments, we nust ensure that we are the best in class."
Touching upon the semiconductor policy, he said it was important that this policy was pro-active and friendly. "We need to see how best to provide comfort levels to those investing," Nambiar said.
It was necessary to have a strong semiconductor industry in India, as all leading countries, such as the USA, China, Taiwan and Japan had equally strong semiconductor industries. There has since been lot of interest in fabs and ecosystem units, and some of those were in the process of being set up.
Friday, August 31, 2007
Does India need fabs? Worth a try!
A friend asked me whether India needs a fab. My answer quick and short was no! While it would be enchanting to see India join the global "fab club" or even have Indians comment "real men own fabs" for a change, I just don't see the ecosystem -- as people like to call it -- there. Maybe, once the odd fabs come up, that would develop as well. However, it can be quite some time away.
India, as most of us know, are strong in embedded and SoC related work. We are strong in design services. We are good at playing to our strengths. We should continue to do so. Note that we are not yet a one-stop design shop, though many people seem to see it that way. This is not exactly software and services!
However, to move up the so-called semicon value chain, India needs to do high-end designs and product development. The last one is currently the problem area.
How many Indian firms are involved in product development? Can you name them? Do you have the names on your fingertips? Most importantly, are those aimed for captive consumption (within the country) or are those serving the global markets? What are the product differentiators?
Right! Let's get back to the fab business. I asked in a earlier piece that whether everyone are aware of the kind of investment that is required for a fab. Do people even have an idea how long would it take for a fab to break even?
First, the investment. The fab is not going to be a small building built on some piece of land. If it's going to be a 300mm fab, the expenses are going to be huge. Let's keep this easy. For starters, there is going to be a fixed cost for maintaining the day-to-day running of a fab. That itself is going to be huge.
Two, most of the fab work would be automated. A fab won't exactly be hiring numbers running well over thousands. Even if huge numbers were hired, do we have people in the country with experience of working in green rooms? Let's assume there are!
Next, there are several other processes involved in developing wafer out of silicon. Do we have people with that kind of experience? Let's again assume that there are. Again, the operating costs for maintaining such personnel would be quite high.
Three, let's get down to the equipment required for a fab. That's going to be really expensive. Most importantly, all of it has to be in place, running, before the fab actually goes live. Next, a fab can't survive for long if it rests on using certain technologies. It has to use all possible latest technologies. Again, getting those would be expensive.
Finally, the wafers coming out have to be world-class and the yield, high, rather, very high. Those should be able to serve multiple product needs as well -- niche and vogue. Oh yes, the fab has to serve the global market. So, do add the marketing costs as well.
How long will it take for such a fab to break-even? Maybe, three to five years. Add the fact that technologies and process geometries would have also progressed a lot by that time. Which means, all of those need to be added on to the fab.
Well, it's worth a challenge. India is betting big on semicon. Let's have those fabs along with the fabless folks. We'll know who stands where, and whether India really has the capability to move up the semiconductor value chain.
India, as most of us know, are strong in embedded and SoC related work. We are strong in design services. We are good at playing to our strengths. We should continue to do so. Note that we are not yet a one-stop design shop, though many people seem to see it that way. This is not exactly software and services!
However, to move up the so-called semicon value chain, India needs to do high-end designs and product development. The last one is currently the problem area.
How many Indian firms are involved in product development? Can you name them? Do you have the names on your fingertips? Most importantly, are those aimed for captive consumption (within the country) or are those serving the global markets? What are the product differentiators?
Right! Let's get back to the fab business. I asked in a earlier piece that whether everyone are aware of the kind of investment that is required for a fab. Do people even have an idea how long would it take for a fab to break even?
First, the investment. The fab is not going to be a small building built on some piece of land. If it's going to be a 300mm fab, the expenses are going to be huge. Let's keep this easy. For starters, there is going to be a fixed cost for maintaining the day-to-day running of a fab. That itself is going to be huge.
Two, most of the fab work would be automated. A fab won't exactly be hiring numbers running well over thousands. Even if huge numbers were hired, do we have people in the country with experience of working in green rooms? Let's assume there are!
Next, there are several other processes involved in developing wafer out of silicon. Do we have people with that kind of experience? Let's again assume that there are. Again, the operating costs for maintaining such personnel would be quite high.
Three, let's get down to the equipment required for a fab. That's going to be really expensive. Most importantly, all of it has to be in place, running, before the fab actually goes live. Next, a fab can't survive for long if it rests on using certain technologies. It has to use all possible latest technologies. Again, getting those would be expensive.
Finally, the wafers coming out have to be world-class and the yield, high, rather, very high. Those should be able to serve multiple product needs as well -- niche and vogue. Oh yes, the fab has to serve the global market. So, do add the marketing costs as well.
How long will it take for such a fab to break-even? Maybe, three to five years. Add the fact that technologies and process geometries would have also progressed a lot by that time. Which means, all of those need to be added on to the fab.
Well, it's worth a challenge. India is betting big on semicon. Let's have those fabs along with the fabless folks. We'll know who stands where, and whether India really has the capability to move up the semiconductor value chain.
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