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Cadence: 'We see lot of start-ups coming up in India'

Posted: 09 Nov 2012     Print Version  Bookmark and Share

Keywords:EDA  cloud  National Policy on Electronics  starts ups  semiconductor IP 

"India for Cadence is very important and critical component of our overall product development strategy," said Pankaj Mayor, vice president and head of marketing, Cadence Design Systems. He spoke to Arti Singh of EE Times India about the EDA industry and technology trends, electronics policy, collaborations, scope for start-ups in India, growth areas, small form factor and lot more.

 Cadence's Pankaj Mayor

Mayor: We have been doing better than the average EDA growth.

EE Times India: Comment on the current status of EDA industry in India?

Mayor: EDA industry is about 30 years old and is an essential part of doing semiconductors today. From a state of the industry perspective, I think EDA in the last decade 2000-2010 did not grow very well from a financial point of view. But EDA has grown very well financially in the last three years. Design complexity increasing in multiple dimensions is driving growth in the need for EDA tools, and EDA in general.

In India, we see more start-ups happening in the last 12 months partly driven by the maturation of the market and partly by the new economic policy. So, we see a lot of companies go ahead and build IP, and we expect these companies to do end products also.

From our perspective, Indian market has always been important because of the global nature of the companies who are present and participating here. But now, we anticipate more local growth happening in the country.

And for Cadence, I think we have been doing better than the average EDA growth. Part of it is driven by different product lines; one of them is called 'Palladium' which is our hardware emulation product line which is getting a lot of demand from system companies now, in addition to semiconductor companies. Then there is the whole verification space. As people are putting more and more IP into a chip and doing more integration, the verification problem is increasing. Different areas like that are driving growth in EDA and growth for Cadence.

EE Times India: What are the trends on design front? Also, tell us about the challenges associated with these trends?

Mayor: The challenges that are happening local to India are in many ways the global challenges. But there are probably some Indian aspects to that. Globally, the trends we see are the move towards application driven design. Historically, you would build semiconductors and the system companies would assemble that into some kind of system. Now system companies are driving what kinds of semiconductors are built.

There's a lot of growth in video, video traffic and lot of those driven out of emerging countries like India. Mobility and Big data or cloud are the two big trends worldwide; out of which mobility is very relevant in India. There is lot of market possibilities of mobility because of the size and scope and scale of India, the remoteness of some places. Mobile applications enable a much better connectivity in India. So that's huge trend in India and there's probably a lot of need for local suppliers to meet that demand.

The other global trend happening is big data. For every mobile, there are some servers needed. Statistics show that for every 600 smartphones or for every 120 tablets you need one server. So there is a big need for data centres which provide a lot of the computing.

EE Times India: The talk of the town is the National Policy on Electronics. What's your take on NPE; and what are your expectations from the government?

Mayor: It's great that the government of India is so focused on driving a national policy on it. There is lot other countries doing something similar with China being one classic example, where electronics and semiconductor industry is seen as a very high priority industry. The government there has been making lot of regulation to support that as well as putting lot of investment.

In India, I have been somewhat engaged in conversations around building fabs for the last 5-6 years. But now I can see there is much stronger appetite for doing that. The Indian government is realising that this is a critical part of driving the Indian semiconductor business. So they are making the investments on the regulatory side to support local businesses as well as outside investments to come in and drive the local businesses.

I expect that there probably will be some kind of fabrication plants, whether semiconductor assembly or EMS kind of companies coming in to serve the end market in India. And, I would also like to see lot more companies doing semiconductor IP as well as doing end products. That will pick up slowly. We can already see some companies doing that. But with a stronger national policy around that, I expect that the people who are already starting up companies or are investing in them, they will be more encouraged.

There will be acceleration in the number and scale of companies forming which is good for India and also for our business. We are really keen that the local businesses in India grow, because that also helps our business.

EE Times India: What kind of role can we expect Cadence to play, post the policy approval?

Mayor: We've already been involved with some of the development works. Cadence CEO Lip-Bu Tan, who is also a venture capitalist, was talking during an event that he is working on providing some funding for these companies [start-ups] through his venture capital arm.

EE Times India: Are there any scope for EDA start ups in India or globally?

Mayor: In our customer base, I think the local companies are just about to start forming and taking off. So I think there is probably a need for a lot of start-ups, there are small companies that do semiconductor IP and what we are looking to see is companies who cross the 100 million dollar revenue threshold. These companies can be counted on our fingertips, but in 5 to 10 years from now, there will be a lot more local companies. So, I think there is lot of opportunity for growth for medium sized companies in India.

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