India's VLSI industry focused on 1-10 million-gate designs
Kariyatil Krishnadas
BENGALURU, India — VLSI design services provided by companies in India
brought in $760 million last year, rising to $927 million in 2008,
according to a study released last week by the India Semiconductor
Association.
The ISA report said the U.S. market accounted for nearly 70 percent of
the 2007 revenue. Europe is the next biggest buyer of design services
from Indian firms, and Japan is seen as a market with huge potential.
The unique challenges Japan presents in terms of language and managing
relationships set it apart, but Indian design houses are starting to get
more projects from Japanese companies, the ISA said.
India logged a total of 1,826 VLSI design projects last year, of which
1,027 were done in the captive centers of overseas companies and the
rest by domestic design service providers. The ISA said it expects the
total number to rise to 2,283 by the end of 2008.
Indian design houses are beginning to do more of the complete design,
from specification to tapeout—at least within companies here that have
experience in designing complex chips at the 65-nanometer process node.
Nearly 11 percent of last year's total fell into the complete-design
category, with the rest being chip-testing assignments, said Poornima
Shenoy, president of the ISA.
And though the cost of both infrastructure
and salaries is rising, there is still about a 30 to 40 percent
differential when doing designs in India vs. the United States or
Europe, the ISA said.
Digital designs still primary
Digital designs made up the vast majority of the 2007 total, at 72 percent, followed by analog
at 16 percent and mixed-signal designs at 12 percent, the report said.
"Companies in India are largely involved in digital design, but the
industry is expected to shift toward mixed-signal technology in a few
years," said ISA chairman S. Janakiraman. "In India, there is a demand
for trained talent to work on analog and mixed-signal designs, and if
this shortage of talent is addressed, India can emerge as a major
powerhouse in mixed-signal design."
In terms of gate count, 61 percent of all the 2007 designs were between 1
million and 10 million gates. Another 21 percent came in at less than 1
million gates and 12 percent were in the 10 million- to 20 million-gate
range. At the upper end, 3 percent were in the range of 20 million to
30 million gates and 2 percent at 30 million to 50 million gates. Just 1
percent of designs surpassed 50 million gates.
"In India, 83 percent of the chips were designed in 90-nm and 130-nm
[processes]," Janakiraman said. "Some companies have designed chips at
45-nm process technology and some are in the process of creating
libraries."
Cost factor in upgrades For any technology upgrade, cost is a major factor. "The 90-nm/65-nm process technology is successfully meeting the geometries and the cost target," he said. "Some captive companies will migrate directly to 45 nm, but these will be very few in number."
According to the ISA report, 52 percent of digital designs last year were at 90 nm and 31 percent at 130 nm. Another 7 percent were in 65-nm technology, 2 percent in 45 nm and 6 percent in the older process technology of 180 nm. Two percent of designs were done at 250 nm.
Analog and mixed-signal design is largely done at the 130- or 180-nm nodes in India, Janakiraman added.
Specifically, the report put 46 percent of 2007's analog designs at 180 nm, 34 percent at 130 nm, 18 percent at 90 nm and 2 percent at 65 nm. In mixed-signal, 48 percent were in the 180-nm process node, 32 percent in 130 nm, 17 percent in 90 nm and 3 percent in 65 nm.
Shortage of PhDs
In all, the Indian industry employed 13,996 engineers in 2007, the ISA said, 27 percent of whom held master's degrees. Engineers with doctorates number just 1.5 percent of the total engineering work force.
The shortage of PhDs has been a cause of concern here, especially when it comes to innovation, and some industry players are seeking to lure Indians with doctoral degrees back from the United States, where most of them now work.
Among the top design services companies here, the ISA report listed HCL Technologies, KPIT, Mindtree, Sasken Communication, Tata Consultancy Services and Wipro Technologies. Intel, Texas Instruments, IBM and Motorola are among the largest global companies with captive centers in this country.
Indian companies that provide VLSI design services are often paid at an hourly rate for the number of engineers they put on an assignment. The alternative preferred by Indian firms is to be paid on a project basis or by the month.
Pay rates, which depend on the seniority of the engineers, are usually put at $3,520 to $6,160 for each engineering man-month. Last year, the average man-month rate was $4,562. The biggest projects, however, are sometimes decided on a firm, fixed-price contracts.
Of the 1,826 overall designs in 2007, the largest single category (42 percent) was module design and verification, while 25 percent were in physical design and 16 percent were in intellectual-property development.
The largest industry segment that did VLSI designs out of India was consumer electronics, with 33 percent, followed closely by telecom and networking products. The portable- and wireless-products segment accounted for 14 percent, computing for 9 percent and automobiles for 4 percent. The medical and defense segments accounted for the rest.
While the long-term prospects for the country's high-tech design services providers are bright, the report cited a number of challenges. Foremost among these is the lack of engineers who can be immediately deployed on a design; many Indian EEs need additional training and skill development, ISA said.
Moreover, Indian companies may be good at product design, but they need to do more in complete-system design and development, the report said. The lack of adequate testing-and-validation facilities within the country is also a dampener, ISA added, lengthening cycle time and prolonging revenue realization.
Cost factor in upgrades For any technology upgrade, cost is a major factor. "The 90-nm/65-nm process technology is successfully meeting the geometries and the cost target," he said. "Some captive companies will migrate directly to 45 nm, but these will be very few in number."
According to the ISA report, 52 percent of digital designs last year were at 90 nm and 31 percent at 130 nm. Another 7 percent were in 65-nm technology, 2 percent in 45 nm and 6 percent in the older process technology of 180 nm. Two percent of designs were done at 250 nm.
Analog and mixed-signal design is largely done at the 130- or 180-nm nodes in India, Janakiraman added.
Specifically, the report put 46 percent of 2007's analog designs at 180 nm, 34 percent at 130 nm, 18 percent at 90 nm and 2 percent at 65 nm. In mixed-signal, 48 percent were in the 180-nm process node, 32 percent in 130 nm, 17 percent in 90 nm and 3 percent in 65 nm.
Shortage of PhDs
In all, the Indian industry employed 13,996 engineers in 2007, the ISA said, 27 percent of whom held master's degrees. Engineers with doctorates number just 1.5 percent of the total engineering work force.
The shortage of PhDs has been a cause of concern here, especially when it comes to innovation, and some industry players are seeking to lure Indians with doctoral degrees back from the United States, where most of them now work.
Among the top design services companies here, the ISA report listed HCL Technologies, KPIT, Mindtree, Sasken Communication, Tata Consultancy Services and Wipro Technologies. Intel, Texas Instruments, IBM and Motorola are among the largest global companies with captive centers in this country.
Indian companies that provide VLSI design services are often paid at an hourly rate for the number of engineers they put on an assignment. The alternative preferred by Indian firms is to be paid on a project basis or by the month.
Pay rates, which depend on the seniority of the engineers, are usually put at $3,520 to $6,160 for each engineering man-month. Last year, the average man-month rate was $4,562. The biggest projects, however, are sometimes decided on a firm, fixed-price contracts.
Of the 1,826 overall designs in 2007, the largest single category (42 percent) was module design and verification, while 25 percent were in physical design and 16 percent were in intellectual-property development.
The largest industry segment that did VLSI designs out of India was consumer electronics, with 33 percent, followed closely by telecom and networking products. The portable- and wireless-products segment accounted for 14 percent, computing for 9 percent and automobiles for 4 percent. The medical and defense segments accounted for the rest.
While the long-term prospects for the country's high-tech design services providers are bright, the report cited a number of challenges. Foremost among these is the lack of engineers who can be immediately deployed on a design; many Indian EEs need additional training and skill development, ISA said.
Moreover, Indian companies may be good at product design, but they need to do more in complete-system design and development, the report said. The lack of adequate testing-and-validation facilities within the country is also a dampener, ISA added, lengthening cycle time and prolonging revenue realization.
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