Easy availability of engineering talent and labour-cost advantages will sustain the competitive edge India has over other countries as a destination for outsourced semiconductor design services, a survey by Ernst & Young says.
“Talent cost advantage and availability and scalability of talent, clearly, are the key factors fuelling the growth of the semiconductor design sector in India,” Ernst & Young said in a report. “On the other hand, high talent cost is limiting the growth of the sector in the US.”
India, however, ranked fourth on quality of talent and fifth on quality of technical education, with the US coming on top on both parameters. The respondents also viewed rising costs and the lack of specialization in India as areas of concern.
India is estimated to have rendered about $4.1 billion (Rs18,040 crore) worth semiconductor design and software services in 2006. The respondents in the survey have rated India as the best country, on availability and scalability of talent. India and China are perceived to have the best talent cost advantage, followed by the Czech Republic, while the US is last.
The survey, which was carried out on behalf of India Semiconductor Association, a lobby group of chip and chip-level software companies, benchmarked India against Canada, China, the Czech Republic, Israel, Taiwan, the UK and the US on several parameters.
These include quality of talent, availability and scalability of talent, quality of technical education, legal and intellectual property rights regime, talent cost advantage, maturity of semiconductor design sector, semiconductor market potential, business environment, availability of good physical infrastructure and other operational costs.
While many engineering colleges produce engineers with a basic understanding of the subject, there are only a few institutes that provide inputs to create specialists.