原创 EDA Actvity in India- Positive Outlook

All the factors are now falling into place to drive growth of EDA activity in India. India is seen as a hot growth market next only to China. This implies the rush to sell all kinds of electronic goods from consumer and telecom products to white goods,  aerospace and automotive products is in full swing. The businesses that form the supporting supply chains for these end products are also in the arena.

VCs are circling the market looking for new and emerging ventures, though the same problems that dog raising capital for EDA start ups dog companies in other regions as well. The returns are simply not perceived to be lucrative enough.

The supply of experienced EDA specialists and hardware engineers is still much lower than the demand for their skills leading to wage inflation for these occupations. As I pointed out in an earlier posting, wages in India relative to the Western world were often 75% lower than comparable wages in Boston, San Jose or London and even with fully loaded costs, the margins were greatly in favor of the outsourcer. ASIC engineering wages in India, for example in 2000-2001 still were low in comparison with more developed regions. They were closer to the US $ 20,000 per annum range for an engineer with 3-5 years of experience as compared with $65,000 in the US. However, time, outsourcing and higher demand and tight supply have taken their toll.

However even with all these caveats in place, in the near term, expect to see greater consumption of EDA tools by the Indian market.  The growth of the local market will help to drive this gain. Keep in mind though, as wages rise, India as a destination for the purely outsourced model may start to lose its advantages.