Pranay Kotasthane, a former chip designer at TI and Qualcomm, and Chris Miller, co-author of 'Chip War', dive into India's semiconductor landscape. They explore why India excels in software yet struggles with chip manufacturing. The guests discuss the impact of historical policies on technology growth, contrasting India's journey with that of China. Insights on the collaborative nature of chip design reveal what it takes to build successful semiconductor ventures, while also examining India’s evolving challenges and future in this competitive field.
India's software industry succeeded due to liberalization and technical institutes' presence.
India's semiconductor struggles attributed to historical factors and lack of competition.
Taiwan's semiconductor success stemmed from export-led growth and broader electronics ecosystem.
Chip designers at Texas Instruments engage in various stages of processor chip development.
Deep dives
Historical Context of India's Semiconductor Industry
India's semiconductor industry struggled due to historical factors including heavy government involvement, technology denial regimes, and an inward-looking approach. State-run semiconductor efforts failed due to lack of competition, limited capital investment, and focus on niche rather than commercial chips.
Comparison with Taiwan's Semiconductor Industry
India's semiconductor industry faced challenges unlike Taiwan's due to restrictions on imports, lack of global integration, and a government-led non-competitive environment. In contrast, Taiwan focused on export-led growth, built broader electronics ecosystem, and started from the base of supply chain to advance in semiconductors.
Evolution of India's Software Industry and Human Capital Story
India's software industry thrived due to partial liberalization, presence of technical institutes like Indian Institute of Science, and favorable labor regulations. The software industry benefited from the removal of restrictions and its later development model, in contrast to India's faltered semiconductor sector.
Day in the Life of a Chip Designer at Texas Instruments
Chip designers at Texas Instruments are involved in various stages from architecture discussions to integration testing of components like graphics processors and ARM blueprints. Teams work on processor chips for specific OEM specifications, utilize modular components from ARM, and engage in back-and-forth testing to ensure chip functionality.
Texas Instruments' Processor Chip Development Process
Texas Instruments' processor chip development involves defining specifications, selecting modular components, licensing IPs, integration, testing, and collaboration with OEMs. The semiconductor design process encompasses architecture brainstorming, modular component realization, subcomponent testing, tape-out, and continuous interaction with foundries and application engineering teams.
Evolution of the EDA Tools Market and Key Players' Roles
The EDA tools market has evolved significantly, with major players such as Cadence and Synopsys dominating by 2012. These companies provide specialized tools for different stages of chip design, collaborating closely with foundries to ensure precise chip characterization. The value of design work varies across the supply chain, with highest value addition seen in architecture-level tasks.
Prospects and Challenges of Chip Manufacturing in India
India's chip manufacturing future involves establishing fabs and assembly plants to reduce vulnerability and build core capabilities. The government's initiatives aim to address historical challenges like complicated tax policies and business restrictions. While the focus is currently on mitigating vulnerability, there's a need to balance this with investing in design capabilities for long-term growth and competitiveness.
Why can India design chips with the best of them but has completely failed to develop fabs, much less a broader electronics industry? To discuss, I have on Pranay Kotasthane, former chip designer at TI and Qualcomm who now works at the Takshashila Institution and is the author of the new book When the Chips are Down.
Chris Miller of Chip War cohosts.
We get into:
How the political economy of technology in India led to world class software and services but underwhelming manufacturing
Why India was slower to the uptake than China that socialism really sucks at getting your country rich
