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Indian start-up to set up three design centres

Posted: 26 Oct 2012     Print Version  Bookmark and Share

Keywords:design centres  SoC  electronic manufacturing  virtual shuttle service 

Dreamchip Electronics Pvt Ltd, a start-up in the electronic system design and fabless semiconductor space, is planning to set up three system design centres in India over the next 12 months.

Dreamchip offers customised SoC design and manufacturing using "cutting-edge system level design methodologies and innovative design platforms like SANKHYA Teraptor," the company stated.

The electronic manufacturing companies (EMC) industry is heavily dependent on imports, with the value of imported components in the finished product ranging from 40 per cent to over 70 per cent of the total cost of a product. A quick calculation will show that, the weak rupee, combined with the large volatility in the value of rupee has caused the cost of manufacturing to go up by between 7-15 per cent.

"With prices continuously falling for most electronic products – this increase in cost, which is only specific to India (and other countries with weak currencies), has made the Indian EMCs even more uncompetitive in their own domestic markets."

In addition by transforming the design costs into Indian Rupees, even when outsourcing the chip manufacturing costs to fabs outside India, where the cost will be necessarily denominated in a convertible currency, the overall cost of the SoC can be lowered by as much as 40-50 per cent.

Dreamchip in turn, offers a very unique offering to its clients, after an initial feasibility study, Dreamchip offers select customers SoCs at a flat 35 per cent discount to the current cost of the bill-of-material that the SoC replaces, the company said.

Gopi Bulusu, founding director, Dreamchip Electronics, explained,"Imagine that you are importing a system-on-chip in a virtual currency called Dreamchip Dollar, the Dreamchip Dollar would have a notional value of 65 per cent of the US Dollar. The 35 per cent savings would make manufacturing inherently more competitive for the Indian EMC."

EMCs having a minimum volume of 250,000 units per year, and a total requirement above 10 lakh units over a 3-4 year term can immediately benefit, said Bulusu. "It may take upto 15-18 months for Dreamchip to create and ship fully tested SoCs in volumes."

The company is also offering a virtual shuttle service, where similar requirements from a cluster of companies are combined into a single custom SoC design and manufacturing order.

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