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Semiconductor News-2008

June 25, 2008

A lot of things are happening in this part of the world. My puffs have become costlier, interest rates have become scarier and credit card calls from banks have become sparser.

Oh yes, did I say, that semiconductor has become one hot trend in India?

Total amount of semiconductor projects done has brought around close to a billion in cold hard cash to India. 927million to be more precise, in 2008 first half itself.

Although 70% of the market is US oriented but a lot of it will come from Japan in the coming times.
Why? Simple. Its underserved. Especially with the designs coming from the US subsidiary of Japanese firms, the costs will be more per design.

The entire split up EE Asia gives as, 21-61-12-3-2-1 🙂
Cryptic isnt it?
Okay it is 21% below 1 million gates, 61% between 1million to 10 million gates, 12% between 10-20 million gates, then comes 20-30 and then 30-50 and then above 50million.

A lot of it, in fact the majority of it is based on digital logic design. As time goes by, and the homebrew talent betters, we can see some mixed signal wine flowing this way too.

Now, I am extremely bullish on this sector for two reasons. First Asia will be the next battle ground for all those CPU wars and Flash Wars and what not!
Why? Simple. India itself has a teledensity of 10 per 1000. Thats too low. So if you are bored of seeing people carrying mobiles stuck to their ears, get used to it. It is only going to get worse.

Telecom has a huge role to play,in this equation. With the population accessing internet through mobile is set to explode, data connectivity and networking is one huge thing.

More importantly, the mixed signal design, the entire crux of modern VLSI business will take a huge upside, as homebrew semi companies and consumer electronic companies start discovering the economy of cheaper design.

But time has to tell, the when and where of the next attractive asset to emerge from this sector. For when it does, for it is just a matter of time, will shake up quite a few paradigms and brew quite a few storms in the coffee cup.
And it will make the opportunity of a lifetime to invest in an underdog like that.

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