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July 2020

Mohammad Anas Wahaj | 29 jul 2020

India has developed expertize in chip design and microchip design related services and its R&D centers are world renowned. On the contrary, it lacks sunbstantially in chip fabrication and manufacturing facilities. Over the years not much investment has been made in this regard and India lags far behind countries like Taiwan, China and the US. Experts suggest that building chip fabrication facilities and ecosystem require huge investments and takes time along with conducive government policies. Moreover, manufacturing is expensive unless it can achieve economies of scale like in Taiwan and China. To reduce its dependancy on China and finding an opportunity to become an alternative destination for chip manufacturing, Indian policy makers and businesses have to consider long-term strategic planning in this regard. Aditya Narayan Mishra, Director and CEO of CIEL HR Services, says, 'Chip design and manufacturing is a highly capital-intensive business...We need access to capital, favourable policies and investment on the ecosystem from design to application engineering...The government has to decide if this is an industry which needs to be promoted.' Dr. Satya Gupta, Chairman of India Electronics and Semiconductor Association (IESA), says, 'A fabrication facility for chip manufacturing requires on an average US$ 8-to-10 billion of investment...Most chip designers outsource to third-party manufacturers who have the expertise and scale in developing such chips.' Ganesh Suryanarayanan, CTO of Myelin Foundry Pvt. Ltd., says, 'Companies in China and Taiwan have had a lot of government support over the last couple of decades to foster such an ecosystem, which consists of materials, machinery, manufacturing, testing, packaging, and sales...Indian government tried one initiative called the Hindustan Semiconductor Manufacturing Corporation (HSMC)...which did not take off-based on the need for heavy initial investment and delayed return on investment.' Read on...

THE WEEK: Why India is good at designing chips, but not at manufacturing them
Author: Abhinav Singh


Mohammad Anas Wahaj | 22 jul 2020

A crisis like COVID-19 pandemic brings challenges and causes disruptions that in turn creates new opportunities and invigorates entrepreneurial activity to search for innovative solutions. Startup companies are a normal progression of this entrepreneurial activity. In the context of India, studies have shown that around 90% of startups fail within the first five years because of various reasons including lack of innovation and guidance. Now Indian Institute of Technology, Kanpur (IIT-K) is partnering with Entrepreneurship First (EF) of UK to support and fund entrepreneurial talent and early-stage startups. EF will help to build co-founder teams, offer mentorship, strengthen the business model and provide pre-seed investment to the startups. IIT-K will provide the business incubator facility as the next step to build a network of expert advisors, access to prototyping facilities and grants. Amitabha Bandyopadhyay, faculty head of IIT-K Incubator, says, 'While India has a huge pool of talented tech-enthusiasts, they are not necessarily knowledgeable about setting up and expanding an enterprise. Industry partnerships can help boost the success rate of early-stage startups in India...The post-COVID-19 world will have a different way of life and technology will become an extension of every process, transaction or interaction.' Esha Tiwary, general manager of Entrepreneur First (India), says, 'Most often, successful enterprises are formed during the times of crisis...The concept of investing in individuals before they have a registered company is in its nascent stage in India as well as across the world. To improve India's startup ecosystem, it is crucial to invest in individuals with unique ideas and early-stage startups.' Read on...

The Times of India: Covid-19 to boost tech entrepreneurship in India
Author: Sheetal Banchariya



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