ISA Vision 2007 - Is India Ready to Compete

Rewriting the Future

Is India ready to compete in the global electronics ecosystem?

Dr. Sandeep MujuCorporate Vice President

Moser Baer

Industry Associations RoundtableIndia Semiconductor Association (ISA) Vision Summit

Hyderabad, February 5th-6th, 2007


Communications, 28%

Industrial, 15%

Consumer, 10%

Automotive, 6%Gov.Military, 8% Computer, 33%

Applications

Mobile Phone 950M

Set-Top Box 230MPC 230MColor TV 160MDigital TV 25M

Examples of 2006 WW Production

(Estimates in Unit)

Global Electronics Industry Profile in 2006

Total: $1200B est.

Rewriting the Future Global Market – Developments*

• Stationary segment: mains powered, wired connectivity (examples: desktop, STB)• Portability segment: battery powered, wired/wireless connectivity (examples: notebook, game console)• Mobility segment: battery powered, wireless connectivity, wear-able (examples: cell phone, mobile terminals)

MOBILE devices

PORTABLE devicesSTATIONARY devices

Computers

Consumer

Communications

C

C

CC

C

CC C

CC

C C

Imaging

Audio

Computers (IT)

VideoComputers

Consumer

Communications

MOBILITY usePORTABILITY useSTATIONARY use

Market Morphing Principle Market Segmentation Trend

Storage Market Segments

MOBILITY use

PORTABILITY use

STATIONARY use

1990 1995

MOBILITY use

PORTABILITY use

STATIONARY use

MOBILITY use

PORTABILITY use

STATIONARY use

1990 1995

*Web Feet Research


• WORK MEMORY vs. STORAGE– Capacity increase pace

• WORK MEMORY – Approx. 10% p.a. x 2 by 2010• STORAGE – Approx. X 3 p.a. x 2,000 by 2010

– Performance increase drivers• WORK MEMORY – CPU performance driven• STORAGE – Market / applications driven

Work Memory

1 Generation

Work Memory Work Memory+ 10% + 10%Storage Storage

Storagex 3

x 3

1 Generation

Work Memory+ 10%

Storage

x 3

1 Generation

Mobility Memory – Evolution*

*Web Feet Research


• Functionality evolution trend:Generation life span: – Approx. 9 months (trend – shorter over time)Functionality: – Needs to increase approx. 30% p.a.Performance: – Needs to improve approx. 50% p.a.Power consumption: – Needs to stay flatForm factor: – Cannot decrease much further (physiologics)Price: – Allowed to increase by max. 10% p.a.

– (price/function has to decrease approx. 15% p.a.)– (cost/function has to decrease at a higher pace)

02 03 04 05 06 07 08

100%

200%

300%

400% Performance

Functionality

PricePowerForm factor

+ 50%+ 30%

+ 10%+ 0%

– 2%

Gen. “n” Gen. “n+1’ Gen. “n+2” Gen. “n+3” Gen. “n+4” Gen. “n+5” Gen. “n+6” Gen. “n+7”

Mobility Market – Functionality Evolution*

*Web Feet Research

Rewriting the FutureIndian Electronic Industry (2004-05)

Total $11.6 Bn

Consumer Electronics, $3.65

Computer, $2

Industrial & Others, $2.65

Strategic Electronics, $0.70

Components, $1.80

Communication & Broadcasting

Equip, $1.00

Indian Production of Electronics has been very low by international standards. But the growth rates are high and the increased presence of EMS companies should stimulate local manufacturing by encouraging the development of an “Electronics Eco-System”

Rewriting the FutureSemiconductor/Electronics Market

Patterns

0

5

10

15

20

25

30

35

40

45U

S$ in

mill

ions

1983 2003

AmericasJapan EuropeAsia Pacific

Consumption has shifted towards Asia-Pacific.By 2010, Asia-Pacific is expected to be ~50% of World Market!


Country GDP 2004-05 ($Bn)

Electronic Production

Share of GDP (%)

Share of Global Production (%)

USA 11750.0 634.0 5.4 44.3Japan 4900.0 220.0 4.5 15.3

Germany 2100.0 174.0 8.3 12.1China 1650.0 210.0 12.7 14.6

South Korea 681.0 103.0 15.1 7.2Taiwan 328.0 51.0 15.5 3.5Israel 117.0 27.6 23.6 1.9India 665.0 11.2 1.7 0.7

Global Electronics Hardware Production:

India is 1/20th of China in global share!

Sources: Instat website; ELCINA research


Rewriting the FutureEssentials of an “Electronics/Semi-con

Eco-System”

Electronics/Semi-con

Eco-System

Industry friendly regulatory framework

Original Design/IP Capability

SemiconFab

Test, Mark & Packaging (ATMP)Original

product Mfg

(OEMs)

Component Mfg – SME’s

Standards

Development

Ready & capable Human Capital

Indian ScenarioSemicon policy on the anvil

India emerging as the global design house

India beginning to be recognized as a manufacturing center for electronics

Large investments in Backend and Front end to further encourage development of Semicon/Electronics Ecosystem


*Source: Plan-B

National level Coordinated Effort required


$12B

$58B

Technology Alliances

Capability in Original Design

Backend manufacturing

Indigenous IP development

Entry into “high” quality/ reliability markets (Defense, Aero-space, Medical) – both design and manufacturing

Local market growth > global growth

Backend “captive” Design hubs

Little/No manufacturing

Lack of sufficient policy incentives

Strategic Marketneeds understanding& development

Technology Concept & Product ConceptDevelopment (IP)

Chip/ProductDetailed Design

Prototyping& Testing

Pilot/InitialManufacturing

Commercial scale manufacturing

$155B

Post salesService & FLCM

Need a Full-Lifecycle Ecosystem Approach for India

Original Design for global market

Front End & Back End Manufacturing

SME support structure Development

Made-in-India “Seal of Quality” – core product/IP in “high” quality/reliability markets developed and made in India

Indian companies developing and leading industry standards bodies.

Further leverage core technology strengths in HW/SW design development; Develop core product and manufacturing strengths into full value chain participation;

Create a place at the Global Standards development table.


Thank you

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ISA Vision 2007 - Is India Ready to Compete