Semiconductor Review

The mathematical computations required to update the complete set of linear regression parameters embedded in the Cowan LRA forecasting model have been carried out.

The newly derived set of linear regression parameters reflect 29 years (1984 to 2012) of historical global semiconductor sales numbers as a basis of predicting future quarterly and full year sales and sale growth forecast expectations by exercising the Cowan LRA model. It will cross $300 B water mark.

Indian semiconductor industry in 2013

Earlier this year, I had the pleasure of keynoting ISA Vision Conference in India where I discussed the growing frustration within India over the country’s apparent delay in becoming a major player in the fabless sector of the semiconductor industry. The pressure will only become more intense as India’s consumption of electronics is predicted to exceed $400 billion by 2020.

“Fortunately, India has all the elements in place to cultivate a vibrant, growing fabless semiconductor industry. First, India enjoys worldwide leadership in high tech with some of the most influential design teams in the world. It is already a leading provider of design services and silicon IP, with the world’s third largest number of silicon IP companies headquartered in India. India also has one of the creative pools of engineering resources and educational institutions in the world, graduating the second highest number of university students per year in the world, with a growing number of them engineers.

“Recognizing the region is poised to become the next great fabless incubator, a growing number of angel investors, both in India and in the West, are eager to fund new companies in India. A particularly successful model has been fabless companies headquartered in the US with the majority of design, and the innovation, being done in India. Beceem was a good example (acquired by Broadcom in 2010 for $316 million).

“There is a fertile environment for creating multi-national fabless semiconductor companies in India. Remember, it takes time to establish and grow a new industry. Qualcomm, for example, started as a contract R&D services organization in 1985 and introduced its first IC product three years later. It spent the next 20 years revolutionizing the wireless communications industry, climbing up the list of top semiconductor companies. In fact, the average age for leading fabless and IP companies worldwide is over 20 years old.”

CEO, Mentor Graphics