INDUSTRY | SEMICON

Pradeep Chakraborty
pradeepc@cybermedia.co.in

Of Semiconductors and All

In the semiconductor market, mass applications are driving growth. We are
now entering the secure edge processing segment. There is re-verticalisation,
from global to local and focus on sustainability. There is pressure on the very
globalised semiconductor market. There is data collection, processing and
decisions taken at the edge. Edge devices are also securely connected to the
cloud. Where does it take us all?

L
ars Reger, EVP and CTO, NXP Semiconductors,
recently said that we need to have electronics
that anticipates and automates. Every bold step
forward faces barriers. We are looking at the
India activity that has grown exponentially.
This vision is very sound. Devices may misbehave at
some times. We need secure connections for a smarter
world, with foundational technologies. We need devices
that sense, think, connect and act. Today, things are
secure and safe.
An example of an ultimate edge devices is the electric
and autonomous vehicles. Radar and safe processing
provide autonomy. Powertrain management and battery
management provide electrification. NXP has a smart
vehicles domain-based architecture. You have clusters
for powertrain and vehicle dynamics, connectivity,
infotainment and in-vehicle experience, ADAS and highly
automated driving, etc.
Industry 4.0 can provide connectivity, autonomy,
energy management, information management, human-
machine interaction, etc. An example is the cleaning
robot with domain-based architecture. Functional
safety and cryptology levels are also increasing. You
can differentiate by creating value system solutions and
functional clusters. There are five steps of solutions.
These include hardware, enablement, reference design,
feature complete, and product ready. Customization
increases as you move from the hardware to the product
ready solution.
We have today available to us full end-to-end secure
smart access system. Secure and precise localization is
provided by UWB. There is driving standardization, such

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The path for India into semiconductor manufacturing
involves enhancing the IP protection in India. There
should continuous thrust to build integrated
infrastructure, large ports and highways
as IEEE, NFC-Forum, CCC, etc. NXP also provides the
Alexa Voice Service box. It is the world’s first MCU-based
AVS development kit. Turnkey design shortens the time-
to-market.
We have Hovergames II for fighting pandemics. There is
an interactive coding competition that inspires developers
to think about using drones to solve real-world problems.
We are also empowering startups to innovate. There is the
Extreme Tech Challenge (XTC) competition. The platform
connects innovators with investors, corporations, and
mentors to increase the potential to raise capital, etc.
Fab Vision
KC Ang, SVP and GM, Globalfoundries, gave the Fab
Vision Talk recently. He said that Covid-19 has been
accelerating digital transformation. There has been
pandemic resulting in lockdowns, travel restrictions and
logistics. We have seen accelerated remote work, smart
manufacturing and contactless payments. There has been
severe impact on industries dependant on labour, such
as manufacturing, construction, etc. We have seen the
adoption of automation, AI/ML, AR/VR to replace labour.
The Indian government has policies supporting growth.
It has been successful as a key automotive manufacturing
hub. Electronics is the second largest import item.
The path for India into semiconductor manufacturing
involves enhancing the IP protection in India. There should
continuous thrust to build integrated infrastructure, large
ports and highways etc. Electronics ecosystem needs
to be enhanced with materials suppliers, equipment
suppliers etc.
Global and Glocal
Dr. BVR Mohan Reddy, Executive Chairman, Cyient,
presented the Global and Glocal Vision Talk recently.
He said that these are interesting and challenging
| A CyberMedia Publication www.dqindia.com September, 2020
INDUSTRY | SEMICON
times. There is volatility, uncertainty, complexity and
ambiguity. The emerging outcome of all this is digital is
the new normal. Travel has come down. Even that travel
has become contactless. Various businesses have also
migrated to being digital. Things are moving fast in
logistics, healthcare, agriculture, medical devices, public
safety, education, banking, etc.
Today, there is ease of doing business. This includes
resolving insolvency, dealing with construction permits,
trading across borders, and starting a business.
Digital infrastructure has grown, in form of telecom
infrastructure, telephone networks, cellular networks,
broadband networks, and Wi-Fi services. We need to
have networks upto the last mile. We need to have the
right infrastructure.
There should be targeted incentives to accelerate the
R&D investments and accelerate ER&D exports. There is
need to make India as competitive destination for services
exports. There is need to make India more attractive for
MNC R&D centres and GCCs (global capability centres).
There should be defence imports, reduction in customs
duty on components to zero percent, and increase
duty in subsystems and products to 40-50% to drive
cost competitiveness. There should also be preferential
market access. We also need to create clusters for
testing, certification and prototyping. Clusters should be
based on an evolving ecosystem. These should be across
advance manufacturing, sustainable energy and mobility,
affordable health, and smart cities.
Recovery from Covid-19 will be led by the new
technologies. This should be led by online meetings,
food delivery, online learning and shopping, online
healthcare and video streaming service. In times like
these, our ability to survive will depend upon how well
we process reality. Atmanirbhar Bharat will be possible
when we start focusing.
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Self-reliance in Semiconductors
At the IESA Vision Summit 2020, there was a fireside chat
on the topic; Building self-reliance in semiconductors.
The participants were Dr. V.K. Saraswat, Member, NITI
Aayog and Dr. Satya Gupta, Chairman, IESA. The panel
was moderated by Ajai Chowdhry, Founder, HCL.
Ajai Chowdhry, started the discussion saying, should
we look at hardware and software? Dr. V.K. Saraswat,
NITI Aayog said that a few companies are going to import
from China, for strategic sectors, such as railways, etc.
Today, the basic digital platforms have security as a
major issue. It is important for India to have design and
manufacturing capabilities. Certain level of self-reliance is
required. The pandemic has made this happen. Imagine,
what will happen, if we do not have these capabilities! It is
important for us to set up a system in the country.
Dr. Satya Gupta, IESA added that ATMP is very crucial
for India. We have to work on the labs. The EMS players
can consume the outputs from ATMPs. Chowdhry
noted that the modern warfare is generally fought with
semiconductors. What will the ecosystem be like?
Dr. Gupta said that there are two important ecosystems.
One is electronics, and the other is semiconductors. R&D
is very important. So is manufacturing, and you will need
logic fab, etc. In the short term, we need to go fabless, in
the mid-term, we need to look at a fab and ATMP, and for
the long-term, R&D. “We need to bring the sector to that
level of autonomy. For R&D, there are excellent models.
We can emulate them, for India. We need to work on all
three fronts -- electronics, products and R&D. We have to
take a long-term view of about 15 years. Being self-reliant
is of utmost importance for any country.”
Dr. Saraswat felt that this is a catch-22 situation. A lot
of electronics are being manufactured here. We need to
translate ourselves by designing components. At least,
the designs we are looking for the domestic market, will
be available. Let us select 10-15 products that can be
designed and manufactured.
He added that the demand for semiconductors should
be met by the foundries. The breakeven points for
foundries come after 7-10 years. The same thing will
happen here! Fabless foundries will make use of the
foundry infrastructure. At least, for 7-8 years, one should
not look at making gains from fabs.
In that case, should we get some fab in the country, or
should we go for 28nm fab? Dr. Gupta suggested that
46 | September, 2020 www.dqindia.com A CyberMedia Publication |
we don’t decide what components are being used. “Our
estimate is that we are consuming $1 billion in 28nm. We
are going to see that stay for at least 5 years. We need to
learn to develop the technology and business integrations.
We should later catch up with the latest technology. 28nm
still has lot of potential, and so has ATMP. There is also the
importance of fabless. We are working on a plan for 100
fabless companies in India over the next 5 years. India did
not have any major investment in hardware. We can get
the fabless, and later, fab and the ecosystem.”
So, can India get a 28nm fab? Dr. Saraswat added: “If
we can lay hand on a 28nm fab, it will be a jumpstart
for the nation. We should try and see through the 28nm,
and follow the 7nm and 5nm direction. We should try with
what we can get, and then jumpstart.”
Chowdhry felt that at least, we can have something
started. The ATMP can also start. The R&D will also start.
Let’s get the ecosystem started.
Dr. Saraswat noted: “One of the options was to acquire
an existing foundry. The investment in a fabless foundry
is interesting. They acquired from a variety of sources and
then gave them to different designers. The fabless foundry
system has to be supported by the government.”
Dr. Gupta turned the attention to the SFAL or
Semiconductor Fabless Accelerator Lab, in Bangalore.
An IESA initiative, it is meant to incubate early-stage
startups and existing SMEs in the fabless semiconductor
segment. “We are beginning to build the ecosystem and
scale it up. We have relationships with Imec, Samsung
and Globalfoundries.”
Chowdhry noted that there have been discussions
about digital security and semiconductors. We need to
have much higher valuation.
There is 6-8% PLI scheme. We need to support the
scheme and have a large strength. We need to support
the system. That will have much better impact on the
ecosystem. We need immediate action for specialty fabs.
We need fabs for power electronics, as well. We should
even extend the PLI scheme for fabs. Also, he wondered,
what will SCL do next?
Regarding SCL, according to Dr. Gupta, over the last 5
years, they have done well. Reliability is more important.
We need to move to modern MPUs. We should upgrade
SCL to at least 65nm.
Dr. Saraswat concluded: “There are other countries
having fabs, besides the USA and China. They are

We need to learn to develop the technology and
business integrations. We should later catch up with
the latest technology
manufacturing all kinds of electronics and products.
We hardly manufacture any equipment in the country!
Companies are not using indigenous equipment. One
other weakness in the country is the understanding of
semiconductors as a subject. We need to build intelligence
for all this. There is a need for R&D for semiconductor
materials and manufacturing, as well.
Dr. Gupta agreed, saying that Apple controls where
they manufacture, who are their suppliers, etc. We must
try and do something similar at the earliest. Chowdhry
said that we need a whole ecosystem. We also need to
have a timeframe for doing this.
Global Relationships in Semiconductors
The Semiconductor Industry Association (SIA) is the
voice of the USA semiconductor industry. Given the
country’s leadership and to strengthen that further, John
Neuffer, President and CEO, SIA, delivered the keynote.
SIA has been doing policy milestones for over 40 years.
Much of the work includes collaborating with the global
counterparts.
This year, there have been the Covid-19 pandemic,
China challenge, rising costs of innovations, etc. The
impact of Covid-19 has been much less than anticipated
earlier. February and March saw significant increases in
global sales. A lot of this demand has come from medical
devices, tablets, notebooks, etc. All of these devices are
powered by semiconductors. The largest market, China,
has also come back online.
Global relationships allowed the semiconductor industry
to respond quickly to the pandemic. The rising decoupling
and anti-globalization have also made the industry strong.
There are some unresolved trade issues, such as country-
specific standards, market distorting subsidies, forced
technology transfer, IP theft, lack of reciprocal market
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INDUSTRY | SEMICON
access. There have been policy responses, such as
reshoring policies, investment restrictions, etc.
China is also seeking end-to-end semicon supply chain
self-sufficiency, and supported by massive subsidies
and industrial policies. The size of China’s IC market will
improve from 43,5% in 2020 to 46% in 2025. Massive
Chinese subsidies are shaping the semiconductor
manufacturing growth. It will also double the wafer
capacity over the next 10 years to roughly 30% of all
semiconductor manufacturing. Despite this impressive
growth, China will fall short of achieving its goal.
There is rising cost of innovation. US semiconductor
industry invests one-fifths of annual revenue in R&D. There
is also a challenge of having access to talent, either home
grown or overseas. US also has a strong immigration
system. Talent is top-of-the-mind for US semiconductor
executives.
There are actions that policy makers need to take to
strengthen the semiconductor ecosystem. There can be
expanded access to global markets, level the playing
field for fab construction, improve international trade
and relations, etc. US companies have identified top five
decision criteria for locating fabs. These are Korea, China,
Taiwan, Malaysia and Singapore. The USA is considered
the least competitive in government incentives and labor
costs.
The ITA is the most important pact for semiconductors.
The Information Technology Agreement (ITA) is a ground-
breaking trade pact that eliminates tariffs on hundreds
of high-tech products, from semiconductors to smart
phones.
Semiconductors have a huge impact across energy
efficiency, robotics, AI, agriculture, smart transportation,
5G/6G, quantum computing, healthcare, etc. We are here
to collaborate and drive the industry forward.
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