INDIA seems to be a major draw for companies in the semiconductor manufacturing space. Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest wafer fab, has already set up shop in Bangalore. Next in line is United Microelectronics Corporation (UMC), another major fab, which has opened a facility in Hyderabad.

The new centre will focus on design work and is expected to help the company expand its customer base. “Initially, we are looking at investing around $5 million in the facility and hiring about 40 engineers. The facility will work on memory design and analogue design. It will also offer customer support to our clientele,” a senior UMC official told ET. According to him, the facility will help tap the design talent pool in the country. In the long run, the company may also look at manufacturing opportunities as well. The plan is to step up its investments in India. The $3.1-billion UMC is a leading semiconductor foundry that manufactures advanced process integrated circuits (ICs) for applications spanning every major sector of the semiconductor industry. UMC employs over 12,000 people worldwide and has offices in Taiwan, Japan, Singapore, Europe, and
the United States.

Experts reckon that with the semiconductor policy in place, India is on course to becoming a strategic market for semiconductor companies. A joint study of the India Semiconductor Association and Frost & Sullivan projects that the total market revenue for semiconductors in India will grow from $2.69 billion in 2006 to $5.49 billion in 2009. “Global Fab companies setting up operations in India are initially likely to focus on serving the needs of their global customers operating in India. Besides, with the emergence of fabless semiconductor vendors in India, they will also be looking at expanding their customer base in India,” said Ganesh Ramamoorthy, principal research analyst, Gartner. Alternatively, global fabs can also use India’s design talent to support their customers’ design service needs during the production process. So talent pool in India can be a major attraction for these companies, he said. Earlier this year, the $9.76-billion TSMC had opened an office in Bangalore. According to a company official, the office would offer local support to its existing customers in North America, Europe and Asia with design activities in India.


INDIA CALLING

• UMC’s new centre will focus on design work and help the co expand its customer base
• Co will invest around $5 million in the facility and hire about 40 engineers
• UMC employs over 12,000 people worldwide and has offices in Taiwan, Japan, Singapore, Europe, and the US
• The $3.1-billion co is a leading semiconductor foundry that manufactures advanced process ICs