Wednesday, December 3, 2008

Top trends for global/Indian semiconductor industry in 2009

Right then, folks! Here are the much awaited top trends for global semiconductor industry for 2009!

First, let's start with microprocessors and microcontrollers. One of the most apt persons to answer this query was Jordan Plofsky, senior vice president, Market, Altera Corp., during his recent visit to India for the Altera SOPC Conference.

Top trend in microprocessors/microcontrollers
Undoubtedly, the major trend will be the shift to multicore and its challenges. These challenges include:

* Parallel programming tools.
* Memory bandwidth allocation.
* O/S support.
* Verification tools.
* Power reduction and performance improvements.

In one of my previous blogs, I had discussed with Intel how parallel programming is getting to be regular! Also, AMD is well on an identical path! Hence, this key global trend is very much in line with the focus on parallelism!

Top global semiconductor trends for 2009
According to Plofsky, the major trends would be:

* Consolidation
* Power management
* Supply chain dynamics changing – inventory reduction
* Focus on operational costs in a slower growth environment

Indian semicon trends
And what about the top trends for the Indian semiconductor industry? Here are some thoughts from S. Janakiraman, former chairman, India Semiconductor Association (ISA) and President and CEO-R&D Services, MindTree.

Top 5 trends for Indian semicon industry in 2009
According to Jani Sir, the key trends in India during 2009 are:

* Global customers will have higher cost pressure and increase level of offshoring and outsourcing in 2009.
* India will become an even more important market for selling semiconductors as India will show higher percentage growth than other markets.
* Decided in India and originated in India products will licensed and manufactured for the global market.
* Business models for design services will start shifting from T&M and linear with people strength to risk-reward, non linear and more skin in the game.
* India will start inventing products that matter to rural and bottom of the pyramid segments.

All of these are in line with what's happening in the Indian semiconductor industry -- focus on embedded and design services, coupled with product development, which is beginning to see several starts. Also, several MNCs are now designing products out of India. Two recent top-of-the-mind instances are those of Intel and AMD. Others will follow suit, definitely.

Well, these trends could be tough to beat! What do you think folks?

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