Interview with... Semiconductor India
productivity of our customers design and North America. What was the initial target If you take telecom alone, the latest data
manufacturing operations. Some of the reasoning for Cadence in setting up in shows that there were 6.42million
same algorithms that we currently use in India and why do you think it has grown additional GSM mobile users added in
EDA might be adapted to other disciplines to be such an important part of the the month of July 2008 alone. Handsets
such as, automotive, biomed or energy. Cadence operations? costing as low as $15 and call rates as
low as 1 US cent a minute have helped
4. You recently withdrew your offer to Cadence has been present in India for the India to become the world’s fastest
buy Mentor Graphics. Do you still think last 20 years. The Corporate Resource growing market for wireless services and
consolidation of two of the biggest Centre in Noida is our largest R&D site in the second largest market for such
players in the EDA arena would help the the world outside our US operations. Two services after China. In June 2008, 6.32
industry? decades ago, India seemed promising with million users had signed up. India had
its engineering talent pool, a business 218.9 million GSM users at the end of
Our goal in pursuing a combination of environment that was gradually opening up. July 2008, data from the Cellular
Cadence and Mentor Graphics was to create I think we rightly estimated India’s potential Operators’ Association of India showed
a company that would offer customers a to be a semiconductor hub. Today, India is that this will continue to increase.
broader and more fully integrated product recognised for its prowess in electronic
and technology portfolio in a time frame design, has a rapidly evolving ecosystem target RIM (Blackberry), Sony Ericson
that would better enable them to address with favourable economic conditions (Walkman series) and Motorola
urgent and complex challenges associated fuelling domestic electronics consumption. (MotoRazr, MotoPebl, W220) are
with their next product development. India is rated highly on market potential, examples where the manufacturer’s
design work, business environment and launched new handset models first in
Despite our best efforts, Mentor Graphics’ advantages of operational costs by India and then worldwide. The driving
board and management were unwilling to independent research firms. factor was the size of market and
engage in substantive discussions on what availability of a cross section of
we believe would have been a compelling Over the years, Cadence has developed economic strata that presents unique
opportunity to create significant value for several centres of excellence across multiple challenges and opportunities.
both companies’ customers, employees and EDA technologies at the India R&D Centre.
shareholders. From the outset of this As India emerges on the global map for target In the past few years pioneering research
process, we consistently stated that we electronic design, we are working closely and development from India has
would be a disciplined buyer. Mentor with our Indian customers to enable them to dramatically altered the perception of our
Graphics’ failure to engage in substantive accelerate the design of complex, high country globally. Time to Market and
discussions on our all cash premium performance ICs, through the adoption of design costs pressure have led to
proposal prevented us from confirming for new products and design methodologies. outsourcing, presenting the Indian
our financing sources the significant We partner with companies across the value semiconductor industry with a huge
synergies associated with this transaction. chain, start ups, MNC IDCs, design services opportunity, which it has embraced with
That, along with our revised outlook and the firms to achieve successful tape outs and impressive results.
present economic climate, led us to increase predictability.
conclude that financing terms for the target The next step for India would be
transaction are no longer attractive for our 6. India has established itself as a design designing products in India for the local
shareholders. Thus, we are moving forward services hub. We are hearing of designs market. By being closer to the market,
with executing our strategy of delivering being owned end to end from India. designing products in India for India,
holistic solutions that address our What do you think are the next steps? manufacturers stand to reap tremendous
customers’ key challenges, while ensuring benefits in terms of productivity and
that Cadence operates in the most cost target India is a booming economy, financial gains.
efficient manner. characterised by greater consumer
spending, increase in foreign target We foresee that more architecture level
5. Cadence India was initially established investments and significant investments decisions will be made in India,
in 1987 near New Delhi but is now the by local companies in manufacturing, particularly in the areas of wireless &
biggest Cadence R&D site outside of telecom and infrastructure. consumer.
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www.semiconductor-india.com | Autumn 2008
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