Tamilnadu as a preferred destination for Investment in Electronics and Semiconductors

TN which has many SEZ for the manufacturing sectors on Auto, ancillary and other production units. As we know that the Fab cost billions of dollars and recently the Government of India has asked the private equities to setup and yet no investment/proposal has come up. A medium component fabrication industry is the necessity in the state of us and this will boost large economic activity in the state. This on future may blossom into a fab of any nanometer technology.Large number of engineers and technologist are working in the semiconductors who hail from Tamilnadu in other cities and around the globe.

Tamilnadu  being a host to skilled manpower across the globe is a big advantage for the Fab investment. We have a good infra in all ways. There is shortage of chips worldwide.We can make this opportunity to become an ideal destination.

TN may thrust on the Electronics Design Park which comprises of the Fabless design, design of electronics products such as Telecom Systems / Mobiles / IT Systems And Hardware / Consumer Electronics / Medical Electronics / Avionics / Industrial Electronics / Defence & Strategic Electronics / Automotive Electronics / Information & Broadcasting Equipment / AI,ML and VR ,Augmented VR.The key areas are the performance architecture, Physical design, Performance verification, Machine learning, drivers and compiler development and Embedded. Changing from embedded software and IP development, to developing derivative SOCs and now to full-blown complex SOC IC development. Given the complexity of Fin FET based SOCs, the large staffing needs continue to cut across international boundaries.There is an urgent need for very high performance processing and very low power consumption devices. Low power consumption combined with low cost will be the key driver in the future. New device structures will be in initial volume production in 2020 to 2025, with nanowires being a potential option for the next generation of structure after FinFETs. Graphene is expected to start being used for interconnect structures in the next 5 to 10 years. While device structures are also expected to continue being fine-tuned, a vital part of any major improvement is the availability of new materials. Adopting block chain, big data, AI and IoT into their semiconductor operations, the companies have seen many improvements in their revenue and efficiency. TN needs to accelerate the quantum computing-led research & development.

We categorise the global EDA market into five major product segments.

·        Semiconductor intellectual property (SIP)

·        Computer-aided engineering (CAE)

·        IC physical design and verification

·        Printed circuit board (PCB) and multi-chip module (MCM)

·        Services

Strength in design systems is based on three main factors, as given below.

·        Strong capabilities in embedded system design

·        Large number of electronics engineering graduates (even though the useful percentage of those who can be employed is still around 10 per cent)

·        Increased demand due to a sizeable number of Indian SMEs and startups focusing on the IoT, AI,Robotic ,drones,Virtual rality,sensors and wearables,aerospace medicines.

To transform state into knowledge empowered economy

 ·        Rising domestic demand.

·        Online procurement.

·        Digital India ($1 trillion dollar opportunity).

·        Stack: Technology for billion.

·        Rising popularity of ICT enabled services.

·        Tech savvy young demography.

·        Upgradation of talent with new and emerging skills.

·        Target is to generate 1 million jobs in the next five years, by facilitating the creation of more than 25000 enterprises.

·        Commoditization of consumer technology.

·        Smartphone and internet penetration.

·        Global venture capital’s interest in Indian start-ups.

 Demand Drivers in Healthcare Industry

 ·        Large ageing population.

·        Increasing healthcare costs in the western world.

·        Increase in chronic and communicable diseases.

·        Increase in disposable income aiding affordability of healthcare services.

  Skill India (Healthcare)

 Healthcare Sector Skill Council (HSSC) on the lines a similar and aggressive at regional levels has been set up to aid skilling and vocational training for healthcare industry.

Healthcare Startups

 Start-ups are rapidly increasing in number, covering aspects like diagnostics, aggregation of health providers, electronic medical records, video/remote consultations second opinion consultations, etc.

Strengths

Presence of world-class hospitals and skilled medical professionals

Industry opportunities

·        Increasing penetration of health insurance

·        Use of technology for healthcare delivery in remote corners

·        Promoting manufacturing of medical equipment, devices, consumables and drugs in India.

·        Reduce the cost of these devices, which were so far imported.

·        Fueling innovative work in space of m-health, telemedicine, electronic medical records, e-ICU, diagnostics through health apps, etc

 Smart Cities

·        Developing tier1 , tier2 ,tier 3 cities during the Smart City Mission period of 5 years.

·        30% of proposed investment in the ICT sector towards developing smart solutions for urban residents.

·        Facilitate requisite infrastructure and services for 40% of Indian residents in the urban areas by 2035.

 Opportunities

·        Large untapped market.

·        Growing demand of ICT enabled smart urban services.

·        Digitization efforts of the government irrespective of the sector.

·        Capacity of large OEMs for catering to smart solutions.

 Skill India

·        Creating Skillful employment with online vocational courses.

·        Making young students employable and providing working population with new skills.

·        Recruiting Early Final years to stay abreast in niche areas through Industry and Institute linkages at the Project/tenure as well as Post graduate. pre-final years at the thesis stage and make them employable at core industries.

·        Creating online as well as distance mode training programmes on emerging technologies.

 Start-up India

·        Fueling the technology startups in India.

·        Providing a platform to technology enthusiastic entrepreneurs in India.

·        Making largest start-up ecosystem in the world.

·        Need to drive 50000 plus tech-based start-ups.

 Demand Drivers

 ·        Growing interest of global investors and silicon valley entrepreneurs.

·        Easy exit route for Indian start-ups due to rising M&A activity, offering opportunity for global players.

·        Increasing demand for cost effective and high quality services globally.

·        Growing investments in R&D and Engineering in India.

·        Innovation Hubs, Ideachallenges, Think tanks.

·        Centre of Excellence with Tier 1,2 Institutions.

·        Centre for University with local startups.

·        Potential for universal expanding.

·        Major market: Domestic.

·        Analytics and Technology startups export services to US , UK, Mid East and ASEAN Countries.

 Strengths

·        IT/ITeS.

·        High adoption of Internet Services.

·        Tech savvy and entrepreneur driven.

·        Huge mobile Penetration.

·        Large investments.

·        Strong presence of Angel Investors,VCs and incubators.

·        Platform for new product and engineering companies.

·        Boost to Fintech, HealthCare, Education, Ecommerce.

 Opportunites

·        Skilled manpower.

·        Evolving consumer demand.

·        Address large scale opportunities in rural markets.

·        Demand for online service.

·        Impetus on Agriculture engineering and technologies by deploying smart meters,gps tracking, drones for spraying in the field.

  Strengths

·        Low cost skill development capabilities.

·        Intermediate skill development programs like ITIs, Diploma programs.

·        English proficiency in Indian skill development sector can attract global students.

  Opportunites

 ·        Focus on imparting skills through online and onsite medium.

·        Business models like National Skill Development to provide affordable skill development courses to global students.

Revenue sharing franchisee model

   Curriculum needs to be setup with the EDA partners, Processor companies for the Microelectronics /vlsi/embedded.Need based curriculum as large number of demand for the Circuit branches as well as the global shortage of the chip will feed the market. There are 5 million vacancy in the chip industries in India alone. It time to think that the institutions to start the hub so that industries can go for faculty exchange programme.

Manufacturing Park at tier2 and at tier3 cities which comprises of PCBs / semiconductors / chip components. ICs, components.

Software and IT park at all regional level, district levels.

Renewable Energy park which is a green power comprises of solar panel industry in large numbers and bio energy from the composite /biodegradable.

  The present MSME companies for long 10 years needs to be expanded to a medium industry and standalone medium industry to be transitioned to large industries. Tool room and design centres and potential institutions needs to establish centres regionally.

 Tamilnadu can push for another Public sector unit in the lines of the fables companies who can supply the design and do research/consultancy for the outsourced defence space and biomedical projects.Nodal agency may be appointed for regional mapping of demand & supply of available and projected skilled labour.

  Government can open vistas for the semiconductor policy of Tamilnadu ,make TN a home to IC design industries and a leading hotspot in the Asia.

The content is mailed to the CM,Finance and industry dept of the state government.Each state govt/union terriorities can have an aggressive policy to achieve the potentials.