INDIA Softjin v Final DR 17/6/08 09:14 Page 29
Semiconductor India
Advantage of hybrid
business model in India
India has seen a massive boom in semiconductor job opportunities in last few years
due to availability of high quality talent in this sector. Barun Kumar De, Manager -
Sales and Marketing, SoftJin Technologies, speaks about homegrown
semiconductor companies and why there might be still not enough.
India has seen a massive boom in
semiconductor job opportunities in last few
years due to availability of high quality
talent in this sector. But most the
semiconductor companies in India are
MNCs who have set up their R&D centres
here. The number of homegrown companies
in semiconductor domain is hand counted
and most of them are in the service domain.
In India it is very difficult to find a
homegrown product company in the
semiconductor area.
The major reasons preventing Indian
companies to start a product venture are
mainly lack of market knowledge and lack
of initial fund to support product
development activities. Where as in US/
Europe the whole ecosystem developed due places like US with close proximity to can incubate its product division. This helps
to right mix of business and engineering customers and lot more industry oriented the vendor to build necessary building
knowledge in semiconductor industry, in research carried out in universities it is blocks without investing money on it. Also
India talent in semiconductor industry is much easier to start a product from the very in most cases some of the customers for the
mainly concentrated in engineering first day. But in India, where some of these service business agree to become the initial
activities. Also in US/ Europe venture ecosystem aspects are still developing, customer for the product. This allows the
capital network is more active and ready to services business can be the ideation engine company to judge the performance of the
fund new concepts. Indian venture capitalist for the products entry. Being in service product at very early stage, but also helps to
industry is still at starting phase and it takes business the firm not only gets the market create initial customer base.
more effort to convince venture capitalists knowledge, which helps them to make the
to share the risk and fund new concept. product successful, but also provides cash Another big challenge Indian companies
reserve which is important to incubate the face in going to product business is to build
But product followed service is able to product. Sharing rights with the customer is up sales and support network. The size of
overcome some of these challenges. In one of the fruitful ways a service company sales and support team in a product
Summer 2008 | www.semiconductor-india.com 29
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