INDIA Cadence vFINAL DR 17/6/08 09:16 Page 32
Semiconductor India
invested in the country to due to time to
market and cost pressures. Bubble-bust
mandated globalisation. The emergence of
the local design services industry followed.
This resulted in a ready pool of experts
capable of delivering cutting edge projects.
Now we are witnessing a trend that of
experienced engineers with bright ideas
wanting to take the plunge. Most
importantly, entrepreneurs now have access
to one of the fastest growing markets in the
world, which has its own unique needs and
challenges.
The opportunities for entrepreneurs are two
fold; one, the local ecosystem has matured Force India F1 Racing team
and provides business opportunities to IP,
design services companies, and indigenous
products and second, design services major international VC’s present in India. A number of VC’s in India are evaluating
companies in India still provide a quality In the recent past, we have seen a spurt of semiconductor start ups, including
and ROI benefit to the global market. VC activities in India, but the funding for product start ups, and we foresee that some
semiconductor segment remains slow. funding will definitely find its way into this
The Challenges The good news is that we are seeing the sector soon. Product and services ideas
Across industry verticals the biggest start up momentum in the semiconductor catering to the Indian market and other
inhibitor to launching a new business industry slowly building up. Once the growing markets are finding favour with
venture is risk averse mind set. Once this entrepreneur is ready to take on the VC’s due to the unique first hand
initial barrier is overcome, the challenges challenges of striking out on his own, the knowledge and technical expertise that
are many, attracting and retaining good critical factors to success include a good local engineers have to address the needs
talent and market development are some of understanding of market needs, market of these regions.
the daunting challenges that all start ups dynamics, the supporting ecosystem,
have to face up front. domain expertise and funding. Conclusion
India and emerging regions have unique
Although the Indian electronics market is The industry has already witnessed several needs and there are immense opportunities
growing at a rapid pace, it currently success stories of start ups making it big in in areas of wireless, consumer and medical
constitutes only a fraction of the world both the local and global markets. electronics. India’s huge consumer base and
consumption. The market addressed by a thriving design ecosystem and pool of
global Indian start up is geographically and What are Venture Capitalists experts will ensure a thriving ecosystem.
culturally distant, and that compounds the (VC’s) looking for?
other challenges. The opportunity lies in VC’s primarily look for credible teams with The overall entrepreneurial climate in India
targeting India and other emerging regions great ideas and a solid execution plan which is bullish. Most of the vital ingredients are
which have unique needs. involves a strong go-to-market plan, in place; design talent, a growing investor
business model and growth strategy. network, robust education system and
Getting funding for Indian start ups was a Though technology differentiators are entrepreneurial spirit. It is only a matter of
concern till recently as India did not have a important, it is equally critical to have a time before more Indian engineers will be
well developed venture capitalist (VC) concrete business and revenue model in bitten by the entrepreneurial bug.
network. However, we now see all the place. Watch this space!
Although the Indian electronics market is growing at a rapid pace,
it currently constitutes only a fraction of the world consumption
32 www.semiconductor-india.com | Summer 2008
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