Could you tell us a bit about Cadence's Indian presence?
Presently, with approximately one-third of our global workforce stationed across five Indian locations, comprising over 4,000 employees, our presence is testament to India’s talent pool. Beyond our internal R&D endeavours, our synergy with esteemed global clients, such as Intel, Texas Instruments (TI), Nvidia, AMD and Qualcomm, has deepened with our presence in the country. Facilitating their endeavours in India through collaborative application engineering journeys has been instrumental in our sustained growth and impact in the region.
Would you say Cadence’s presence in India has helped your global partners such as TI, Intel etc?
Absolutely. If you look at the percentage of design that companies like Texas Instrument, Qualcomm, Intel and many more, they are now executing in India – it is a very large percentage. Obviously, they are using our tools to get their design work done. For us to work with them closely in India and help them be successful is key to their success and for our success as well. It is a mutual win-win. We have had a substantial growth in that aspect of our business also.
How is the local market for Cadence in India beyond the international players you work with here?
Between 70 to 80 per cent might be large multinationals who have a huge design centre presence in India. In addition to this, there are services companies. Government labs, largely for strategic purposes and research use, our tools as well. Thirdly, which is the most interesting category, and the one that we are really hoping will grow, is Indian IP and product companies – companies that are defining and creating IP or products from India. That is a relatively small percentage now, but we are hoping will grow the most. For the broader India semiconductor story to play out in the long run, it is vital that that this segment grows because that is where the real value gets created.
But the growth in Indian IP and product companies’ segment has obviously been slow…
Yes. There is progress, but it is slow.
Where is the gap?
In terms of India’s design prowess, Indian engineers are very well recognised globally. The gap is in the business side of things. Understanding a market, defining a product that can uniquely serve that market – I think that is where the gap is. We need startups and entrepreneurs who are passionate about an idea and want build a product. We also need existing Indian businesses to step forward and invigorate the semiconductor. Tata coming into the fray brings great heft but we need more. The government can lower entry barriers, give incentives, create policies that are conducive to and supportive of Indian product companies or startups. But the Indian startups, product companies and entrepreneurs with the right mindset still need to step forward.
But clearly you are optimistic with this segment despite the sluggish growth. What drives your optimism?
There is a realisation that the real value gets created when you are doing design well. And so, we need to have Indian companies that can design products. I think that realisation exists today at all levels more than it did five years ago and everybody is focused on making it happen. My optimism stems from this. Also, the governmental approach transcends mere policy enactment; it is steering towards tangible outcomes, actively assessing efficacy and readiness for evolution. Such a mindset, to me, embodies hope. Given where we stand today, I expect it to be slow, I don’t expect miracles in the next 12 months or 24 months, yet the trajectory unmistakably aligns toward an inevitable fruition, as the indispensability of a robust design ecosystem resonates universally.
'Design-led manufacturing' discourse will be crucial as manufacturing devoid of thoughtful design will be not enough. Look at China’s trajectory, where initial manufacturing dominance eventually succumbed to commoditisation. This shows the imperative of nurturing an innovation-driven landscape. There must be a synergy between design and manufacturing for sustained industry prosperity. There are still gaps. While governmental impetus is pivotal, the private sector’s proactive engagement is equally indispensable. Cadence has been working with schools, universities and talent and will continue to enable India’s semiconductor journey as much as possible.
_20240701175159_original_image_19.webp)