We Are Looking To Develop India-specific Chips: Analog Devices
US-based semiconductor company Analog Devices is looking to leverage its research and development (R&D) capabilities in India to develop India-specific chips, according to the company's senior leadership in the country.
"Now that the Indian market is becoming significantly large and unique in some ways, we are considering the development of India-specific chips due to our substantial R&D capabilities here," said Vivek Tyagi, Managing Director (Sales) at Analog Devices India, to BW Businessworld on the sidelines of IESA Vision Summit.
The remarks from Analog Devices' senior leadership come at a pivotal moment, coinciding with India's intensified efforts to make substantial advancements in the semiconductor industry around both design and manufacturing.
During Fiscal Year 2023, Analog Devices recorded a revenue milestone of USD 12.3 billion globally, driven by the Industrial and Automotive sectors. Concurrently, the company made history in India during the same fiscal year, securing "three-digit million-dollar" sales for the first time.
Bullish on the prospects of semiconductor industry in the country, Analog Devices is now looking to continue its investment trajectory to enhance its presence in the Indian market. The company is looking to double its headcount from 1500 to 3000 over the next seven years, which will largely be focused on marketing, sales, market expansion and expansion of design engineering.
Beyond these, the company will also continue its investments in various infrastructures, including support facilities, real estate and state-of-the-art laboratories crucial for various technological applications such as communications, automotive, battery management systems Anechoic chambers and RF chambers.
"We have made significant investments (millions of dollars) because it is a CapEx intensive thing. And we will continue to invest on this," said Srinivas Prasad, Senior Director & Site Head at Analog Devices Inc India.
Prasad further said that Analog Devices is also focused on strengthening its ecosystem partnerships and working closely with universities.
India Market
In India, Analog Devices is strategically concentrating on telecommunications space, particularly in the burgeoning 5G infrastructure area where India plays a pivotal role. The second key focus is on the automotive sector, encompassing both automotive in general and the specific segment of electric vehicles (EV).
Globally, Analog Devices derives 40 per cent of its revenue from industrial markets, covering areas such as factory automation, energy-related fields including renewable energy, medical electronics and more. In India, the company's market distribution aligns somewhat similarly. The automotive sector contributes about 20 per cent to the global revenue.
Aerospace and defense are also strong markets in India for Analog Devices, with the company actively participating in programmes such as ISRO's Mission Chandrayaan and Mangalyaan. Additionally, the company is also actively engaged in the wearable devices segment, where India has performed exceptionally well in recent years.
