ISA WINWire January 7 - January 16 2011

India's electronic renaissance

Source: Rahul Sachitanand, Business Today, January 8 2011

Deepak Loomba, an entrepreneur based in Gandhinagar, is dreaming big. His venture, De Core Nanosemiconductors, already has one of the largest operational semiconductor manufacturing sites in South Asia and employs about 70 people. But this is just the beginning, he says. He reckons the growing stress on energy efficiency in India means a large and expanding domestic market for his venture. "India will be one of the largest consumers of LEDs in the world," says Loomba, referring to light emitting diodes, the latest in lighting. B. Visweswaran, a 37-year-old Chennai-based entrepreneur is aiming high as well. A former Intel employee, his two-year-old startup Wysene provides solutions that streamline the power usage of industries in India. The firm's product tracks power drawn from the state grid and from newer sources such as solar panels and windmills. The companies then can tweak their production cycle to save power and costs. "Industries could shift power-intensive processes to off-peak time when electricity is cheaper and perhaps more regular," says Visweswaran, who has also worked out a product for homes.

ChrysCapital to invest Rs 112.5Cr in KPIT Cummins

Source: Madhav A. Chanchani, VC Circle, January 9 2011

Private equity major ChrysCapital has started 2010 with a busy note, closing a deal in the first week of the year. The PE firm is picking up a stake in mid-cap information technology firm KPIT Cummins Infosystems Limited for upto Rs 112.5 crore. The stake will be picked up through a preferential issue to ChrysCap entity Warhol Ltd (Mauritius) and subject to shareholders and other regulatory approvals. KPIT has called for an extra-ordinary general meeting (EGM) on February 4. The deal could fetch ChrysCapital upto a 8.95% stake in the company on a post-dilution basis, subscribing to 7,758,621 equity shares of Rs. 2/- each. The deal has been struck at Rs 145 per share, a 1.75% premium to Friday's closing price of Rs 142.5. The firm's share price has reached a 52-week high of Rs 192.9 per share, with the market capitalisation at current price of Rs 142.5 coming to Rs 1,124 crore.

CEO Meyer resigns from AMD

Source: Dylan McGrath, EETimes, January 10 2011

Dirk Meyer, president and CEO of Advanced Micro Devices Inc., has resigned from the company after two years as its top executive, AMD said Monday (Jan. 10). Thomas Seifert, AMD's chief financial officer and senior vice president, has been appointed interim CEO of AMD, the company said. Meyer took the reins at AMD in July 2008, succeeding longtime chief Hector Ruiz. He first joined AMD in 1996. AMD said Monday that Meyer resigned after reaching a "mutual agreement" with the company's board of directors.

SMSC set to buy Conexant for $284 million

Source: Peter Clarke, EETimes, January 10 2011

Acquisitive mixed-signal chipmaker Standard Microsystems Corp. has agreed to buy Conexant Systems Inc. (Newport Beach, Calif.) in a stock and cash transaction valued at $284 million including the assumption of Conexant's net debt. Conexant, the remainder of the spin-off of Rockwell's semiconductor interests in January 1999, is a vendor of imaging, video, audio and embedded modem chips. The transaction has been approved by the boards of directors of both companies.

Five predictions from IC Insights

Source: Mark LaPedus, EETimes, January 10 2011

2011 has arrived and there are mixed signals in the IC market right now. Here are five predictions from Bill McClean, president of IC Insights Inc.:
1. GDP
Plus 3.9 percent worldwide. (2010-4.2 percent)
''China and India to help drive growth.''
2. IC revenue forecast
Plus 10 percent. (2010-32 percent)
''I’m optimistic. I think it will be a good year.’’

Foundry capacity glut seen in '11

Source: Mark LaPedus, EETimes, January 11 2011

The so-called capital spending ''arms race'' in the foundry business will continue, as leading-edge vendors will boost their expenditures in 2011, according to an analyst. But also look for a foundry capacity glut in 2011. Foundry Globalfoundries Inc. plans to double its capital spending in 2011 to $5.4 billion, a spokesperson confirmed Monday (Jan. 10). Capex of $5.4 billion would rank Globalfoundries third among chip makers in 2011. TSMC, Samsung and others could follow suit, causing a glut of foundry capacity in the market. TSMC's capital spending is expected to hit $7.433 billion in 2011, while Samsung is projected to spend $2.75 billion this year, according to HSBC.


Four predictions from Gartner

Source: Mark LaPedus, EETimes, January 11 2011

2011 has arrived and there are mixed signals in the IC market right now. Here are four predictions from Dean Freeman, an analyst with Gartner Inc.:
1. IC revenue forecast
Plus 4.6 percent. (2010-31.5 percent)
2011 IC drivers include ''cloud computing, social media and greentech/IT.''
2. Wafer fab equipment
Minus 3.4 percent. (2010-Plus 133 percent)
''Capital spending shifting to foundry and NAND.''

India to unveil new defence production policy

Source: NC Bipindra,, January 11 2011

India will this week come out with its first Defence Production Policy (DPP) that aims to arrest the trend of imports in arms purchases and strongly pitches for a robust domestic industry. The draft of the new DPP, approved in December 2010 by the Defence Minister AK Antony-led Defence Acquisition Council (DAC), focusses on building a robust industrial base for achieving self-reliance in meeting the armed forces' needs. Under the new production policy, the government will give preference to indigenous design, development and manufacture of defence equipment, defence ministry sources said. In particular, the policy will hold good for long-term needs such as equipment required over 10 years into the future, they said.


Moser Baer proj to raise over $100M in solar unit

Source: Reuters, January 12 2011

Moser Baer Projects Private Ltd plans to raise more than $100 million in 2011/12 to fund its solar power projects developed by its clean energy unit, a senior company official told Reuters on Tuesday. The company, promoted by the founders of Moser Baer India Ltd, said earlier in the day it has raised 5.80 billion rupees ($128 million) from Macquarie SBI Infrastructure Fund and State Bank Of India. "The next business where we would look at potentially raising outside capital would be Moser Baer Clean Energy, which is our solar development company," Director Ratul Puri said over the telephone.

Indian telecom sector to grow to $100 bn by 2015: BCG

Source: The Business Standard, January 12 2011

The country's telecom sector will witness up to Rs 2,50,000 crore investments and the market will cross the Rs 4,50,000 crore or $100 billion-mark in 5 years, Boston Consulting Group (BCG) said today. "Contrary to the general belief that telecom story is over, we believe that the game is still on. The only difference is that voice market is flattening and the growth will be in services," BCG India's Partner and Director, Arvind Subramanian told reporters after the release of a report on the sector. Subramanian added that BCG has included a wider gamut of markets like digital advertising, handsets, TV distribution, TV sets, mobile data services, wireless, laptops and PCs and wired voice services while arriving at the forecast.

EDA revenue hits Rs.5,962.60 crore in Q3 10

Source: EETimes, January 12 2011

The EDA Consortium (EDAC) Market Statistics Service (MSS) reports that global revenue for EDA totalled Rs.5,994.71 crore ($1,307 million) in Q3 10. Also, revenue was up 6.9 per cent sequentially, and up 11.9 per cent over Q3 09. The four-quarters moving average also increased by 4.9 per cent. Walden Rhines, EDAC chair and chairman and CEO of Mentor Graphics Corp. noted, "There has, indeed, been quite an improvement in Q3 10 EDA revenue versus last year." He added, "Traditionally, EDA revenue recoveries have lagged behind the semiconductor industry recoveries by about one year. While EDAC only reports data and takes no position on its meaning, individual companies, such as Mentor Graphics, have expressed optimism in their Q3 earnings reports and have suggested that the timing of the improvement in EDA is similar to previous recoveries."

Indian semicon industry to grow 15 p.c in 2011

Source: CIOL, January 13 2011

Indian semiconductor industry is expected to grow by 12 to 15 per cent from the previous year and the global semiconductor industry would grow 6 to 8 per cent, said an NXP Semiconductors executive. Sharing this view at the CXO Conclave organized by Indian Semiconductor Association (ISA) and NXP here today, Neeraj Paliwal, vice president and managing director and design services global manager, Central R&D, NXP India said the trend in semiconductor industry is now moving towards ‘society-focused’ solutions that will benefit not one section of consumers, but the community as a whole. “Increased government spending in India on technology and infrastructure will also boost this trend. Overall, we are seeing four key trends that are driving growth for the semiconductor industry, globally as well in India – energy efficiency, connected mobile, security and health,” he said.

Panel for new telecom policy

Source: Mansi Taneja, The Business Standard, January 13 2011

The Department of Telecommunications (DoT) plans to set up a committee to initialise the process of formulation of New Telecom Policy (NTP)-2011, which will override the existing policy announced 11 years before. DoT will also finalise its internal view on the Telecom Regulatory Authority of India (Trai’s) recommendations, which was given in May last year, on mergers and acquisitions, spectrum allocation, spectrum sharing and other licencing aspects by the end of this month, a senior official from the department said.

Mobile doubts weigh on chipmakers Intel, AMD

Source: Noel Randewich and Tarmo Virki, Reuters, January 14 2011

Fears about Intel Corp's absence in tablets and smartphones are overshadowing the chipmaker's strong earnings and reinforcing the impression that the company no longer sets the direction of the tech industry. The world's largest semiconductor maker has new chips for mobile devices on the way this year and is boosting spending on research and development, but it remains far behind rival ARM Holdings, whose chip architecture is found in most smartphones and tablets. Despite better-than-expected fourth-quarter earnings and guidance posted on Thursday, and a broadly higher market, its shares slipped as investors focused on the company's failure to stake out territory in the mobile market.

TSMC vaults into top 10 in R&D spending

Source: Dylan McGrath, EETimes, January 14 2011

TSMC's R&D spending rose by 44 percent to reach $945 million last year, moving the company from 19th among chip manufacturers to 10th, IC Insights said. The jump in R&D spending by TSMC is the latest result of the success of the fabless-foundry model and the increase in IDMs migrating to fab-lite models, IC Insights noted. While IDMs and fabless suppliers typically spend about 15 to 20 percent of their revenues on R&D, foundries invest only about 5 to 10 percent of their revenues in R&D, according to the market research firm.

Compiled by
ISA Research

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