ISA WINWire February 4 - February 11 2011

Intensive inputs

Source: EuroAsia Semiconductor, February 1 2011

European semiconductor industry declared Europe’s most R&D intensive Europe’s semiconductor industry has ranked first top for R&D investment intensity in a recently released European Commission 2010 EU Industrial R&D Investment Scoreboard, which every year calculates and ranks the ratio of R&D investment over net sales of 1400 listed companies worldwide. With a record ratio of 21.8% of annual R&D expenditure over annual sales, the sector’s R&D intensity is almost eight times that of the EU industry average. Semiconductors rank alongside other sectors such as biotechnology or software as a High R&D intensity sector, with semiconductor R&D investment reaching 3.3 billion EURO in 2009 amongst the surveyed companies. The European R&D intensity average is calculated at 2.8% for 2009. For 2008 figures, surveyed chip makers were second with a 18% ratio and R&D investments of over 4 billion EURO. The result is replicated at the worldwide level, where semiconductor manufacturers were ranked second with 16.8% R&D intensity, also up one position from the 2008 report figures (15%) and positioned between biotechnology and pharmaceuticals.

Global semiconductor sales hit record $298.3b in 2010, says SIA

Source: Electroiq, February 2 2011

The Semiconductor Industry Association (SIA) announced that worldwide semiconductor sales for 2010 reached a record $298.3 billion, a year-on-year increase of 31.8% from the $226.3 billion recorded in 2009. Worldwide semiconductor sales in December amounted to $25.2 billion, a modest decline of 3.0% from the month prior in line with historical seasonality, and 12.2% higher than December 2009. Fourth quarter sales of $75.5 billion represent a 4.0% decline from the immediate prior quarter, and a 12.2% increase over the same period in 2009. In 2010, all major semiconductor product categories showed double-digit growth year-over-year.

Smart chips now propel technology research

Source: Times of India, February 3 2011

It's not just the BMWs and Audis which flaunt hi-tech display panels that get upgraded every season to cater to their high-heeled clientele. Very soon, bullock-cart drivers can have a sensor panel attached to the yoke of their bullocks that can track the load the cart is carrying. This Rs 50 basic device beeps if the animal goes off the road and a small display panel gives back-up information on how much load the cart has been carrying over the last few trips. This device is not ready yet but will hit the market shortly, says Neeraj Paliwal, vice-president and country manager of NXP India, a semiconductor major.

Imagination Tech buys HelloSoft for Rs 225 cr

Source: The Hindu Business Line, February 4 2011

Imagination Technologies Ltd, the UK-based multimedia and communications technologies provider, has acquired HelloSoft, the US-headquartered firm with R&D interests in India, for a consideration of Rs 225 crore ($47 million) in cash-stock deal. Post acquisition, Imagination Technologies would let the HelloSoft brand continue as it increases workforce in the next few years.

Keonics to ink MoU with Israel’s Moital for semicon tech R&D

Source: Subrahmanyan Viswanath, Deccan Herald, February 4 2011

Decks have been cleared for the signing of Memorandum of Understanding (MoU) between the Karnataka government and Israel’s Ministry of Trade, Industry & Labour (Moital), for the promotion of the semiconductor sector in the State and joint research and development (R&D) activites between the firms. Official sources told Deccan Herald that the State Cabinet has cleared the MoU between the Government of Israel and Karnataka. Following this, sources said, the State Government has written to Israel’s Office of the Chief Scientist under Moital to visit Bangalore for the signing of the technology transfer MoU.


India to become fifth largest consumer market by 2025

Source: The Hindu Business Line, February 4 2011

India is all set to become the world's fifth largest consumer market by 2025, providing significant opportunities for consumer business companies, says a study ‘Consumer 2020: Reading the signs' conducted by Deloitte Touche Tohmatsu Ltd. The convergence of economic, demographic, and technological forces will bring about unprecedented changes in consumer behaviour globally, the study adds.

India's middle class population to touch 267 mn in 5 yrs

Source: Business Standard, February 6 2011

The Indian middle class, target consumers for many companies, is expected to swell up to 267 million people in the next five years, up 67% from the current levels, thus providing a great market opportunity for firms, according to NCAER. A report by National Council for Applied Economic Research's (NCAER) Centre for Macro Consumer Research said by 2015-16, India will be a country of 53.3 million middle class households, translating into 267 million people falling in the category. As per the study, which uses 'household income' as the criterion, a family with an annual income between Rs 3.4 lakh to Rs 17 lakh (at 2009-10 price levels) falls in the middle class category. (As per 2000-01 prices, middle class classification was based on annual income of Rs 2-10 lakh.)


E-manufacturing clusters to rein in import bills on cards

Source: Goutam Das, Financial Express, February 7 2011

The Centre is putting together a proposal to promote electronic manufacturing clusters as part of its modified Special Incentive Package Scheme (SIPS) meant to incentivise hi-tech manufacturing — a move that reflects growing concerns in government circles about the rising import bills of electronics. China and Taiwan have raced far ahead in technology hardware manufacturing and eyebrows are being raised on India's reliance on other countries for high-end electronic components. Some industry watchers estimate the current gap between the domestic electronic market and the local production at a stupendous $23-25 billion.

Govt should fund education, leave running to private firms

Source: Madhurima Nandy & Bhargavi Kerur,, February 7 2011

The government will deliver its budget for 2011-12 later this month amid inflationary and fiscal concerns. The budget should promote infrastructure, create opportunities for entrepreneurs and new businesses, and encourage research and development, said panellists on the Bangalore leg of Mint’s Budget Agenda 2011, a four-city pre-budget discussion. Speakers debating the topic ‘Driving inclusiveness in industrial growth’ included Krishnan Ganesh, entrepreneur; Harish Bhat, chief operating officer (COO), watches, Titan Industries Ltd; Manish Sabharwal, chairman, Teamlease Services Pvt. Ltd; Poornima Shenoy, president, India Semiconductor Association; and Anil Padmanabhan, deputy managing editor, Mint. Haseeb A. Drabu, a former chairman of Jammu and Kashmir Bank and a Mint columnist, moderated the discussion. He started off by asking the speakers to talk about how to make the Union budget relevant to new realities and new businesses in their respective fields.

Harman to invest $100 Million over 3-5 yrs in Indian market

Source: SiliconIndia, February 7 2011

The U.S.-based leading premium audio and infotainment solutions provider, Harman International, plans to invest around $100 million over the next 3-5 years to increase its footprint in India, a top company executive has said. The firm, which set up its own entity in mid-2009 in India, is eyeing a 1,200 crore business over the next five years, he said here. "Considering the increasing consumer base, which invests in gadgets and leisure activities, India has become one of the lucrative markets for us. To increase our footprint in India, we plan to invest around $100 million over the next 3-5 years," the company's Managing Director and Country Manager for India operations, Lakshminarayan M, told.

Infotech to buy European aerospace firm for $20 mn

Source: Business Standard, February 8 2011

Infotech Enterprises Limited, which provides engineering and geographic information services, is in advanced stages of acquiring an aerospace services company in Europe for a consideration of approximately $20 million (Rs 91 crore). Sitting on a Rs 280-crore cash pile, the Hyderabad-based company proposes to go in for this acquisition to bring high-end competencies to its recently-integrated global aerospace practice.

SAP Labs plans 'Made in India' products

Source: Pradeesh Chandran, Business Standard, February 8 2011

SAP Labs India, the research and development (R&D) arm of the German global business management solutions firm, SAP, plans to develop two global products, end-to-end, from its centre in Bangalore. India is the second largest R&D centre of SAP and contributes to 30 per cent of its global products. SAP would, if the move succeeds, become the first multinational company in the software products sector to come out with a product that is completely a 'Made in India' one.

Compiled by
ISA Research

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