ST's Corporate VP: India deserves to have
its own electronics-manufacturing base
ST Microelectronics' product portfolio covers most of the
application and technology domains of semiconductor market,
ST is one among the top three in some of the major growing
segments. Asia is the biggest buyer of its products. 60%
of its revenues is from Asia. ST also serves Indian semiconductor
market quite well, ST's sales in Indian region crossed 300
million US$ in 2009. Francois Guibert, ST Microelectronics'
corporate vice president and president of Greater China
and South Asia Region, supports the cause of India electronics
manufacturing. He is also open to the thought of investing
in a semiconductor fab if the market conditions suggests,
but not now. Robust electronic manufacturing eco first and
then is the fab, he says. Recently he was in Bangalore to
present keynote speech at the ISA Vision Summit organized
by India Semiconductor Association.
In an exclusive video interview with EE Herald, He shared
ST's product specialties, industry trends, market opportunities
and lot on Indian electronics and semiconductor market.
Here are the excerpts:
His views on India electronics and semiconductor industry
and market: Francois Guibert: India has a huge potential.
The things that we need is - to put more R&D - from
Indian companies based in India. We need more manufacturing
from Indian companies. We like that there are international
customers in Chennai for telecom - but for a country like
India it deserves to have its own electronics-manufacturing
base with presence from local investors and entrepreneurs
as local source - as China did - or even Taiwan, Korea Japan.
For us - the local market is very important and in particular
developed by the local industry. This is key. That's why
spending money on R&D in hardware manufacturing not
the software, which is key and beneficial, something very
important for India. Moving to more hardware manufacturing
makes India a competitor worldwide.
There is original internal consumption -- at the end people
don't consume software, they consume hardware such as PC,
Car, TV iPod or whatever.
I interrupted him saying, 70% of semiconductor development
is software: Francois Guibert: Sure, but we embed it - at
the end people buy a physical device. You need to provide
manufacturing of hardware, because at the end people doesn't
buy software. It's already embedded in the device. There
are large number of local companies in India. There need
to be justified with more companies in electronics.
The strengths of India he pointed out include cost competitiveness,
huge pool of IT resources, good educational institutes,
number of universities and high English literacy.
On strategic role of electronics and semiconductor industry: Francois Guibert: Electronics is so strategic
because we (semi and electronics manufacturers) are driving
all the services. Service providers can not work without
electronics. That's why electronics is so strategic. Banking,
IT, Broadcasting, Internet, Telecom service providers need
electronics. Think electronics has a whole of both hardware
and software.
On the future mega trend in semiconductors: Francois Guibert: The future mega trends - green
electronics -Biomedical are built on the requirements of
climate change, health, aging population, globalization
and so on. There is a need of green electronics, Biomedical,
advanced security, and advanced connectivity.
Priorities for India among electronics hardware manufacturing
and semiconductor foundry: Francois Guibert: What is important is electronics.
Electronics started first, never the semiconductors. The
ingredient of success is to choose one application but for
India it can do more than one application because of the
size and internal consumption.
He says, though both are related electronics hardware manufacturing
and design should be given priority followed by semiconductor.
That's how markets in other regions have evolved.
On government support for the industry: Francois Guibert: Electronics industry need government
support in education, incentives -- not only tax incentives
-- overall incentives. Technology parks such as Hsinchu,
silicon valley (many such examples he mentions).
He suggests India can have many such concentration centers
including Bangalore, Noida, Chennai, Hyderabad, Mumbai,
and Pune.
On the India solar mission opportunity: Francois Guibert: We try to be key supplier of entire
solution. The solar cell is one part --there are controllers
to save battery -- there are controllers to interface --
we try to apply all sorts of these kinds of applications
because there are volumes and government has key project
in lighting.
India's manufacturing environment now compared to 10/15
years back: Francois Guibert: I have been to India since
1988. I see now the change. Not by visiting Delhi (talkig
about city infrastructure)-- but when I am visiting people
in-charge in government, potential customers from India,
manufacturing association and so on -- I met people who
have strong willing to develop own R&D solutions. I
can feel much difference from 20 years ago.
On India Europe partnership in technology: Francois Guibert: There is a lot on R&D. In electronics,
European companies are helping a lot in providing a platform
and solutions. It is still far from bringing a semiconductor
manufacturing in India - for semiconductor manufacturers
in general - not ST.
He foresees, over the time the semiconductor manufacturers
will be attracted invest in chip manufacturing plants in
India driven by the market demand.
On the need of support for remote customers in far away
places of India for procuring small and large quantity of
chips: Francois Guibert: We have huge network of distribution
in India. We are 4/5 major key distributors spread all over
the country. We ourselves have a sales force between Greater
Noida, Pune, Mumbai,Bangalore and a small office in Chennai.
We are getting close to our customers quickly.
Expansion plans of ST's India operations: Francois Guibert: It is too early to say, we are
coming from a difficult times in 2009, we have to absorb
this crisis, but is true that --in every application particularly
in R and D, there is a large indulgence in continuous development
of investments in India.
Technologies ST has in smart card and chipcard market:
Francois Guibert: We have developed high security microcontrollers
for passports driving license, ID cards, transportation,
subways. Now India has big program in UID, we intend to
participate.
On the semiconductor business model of fables and fab-lite: Francois Guibert: We are fablite. Our partnership
with IBM is constructing on developing the process -- Obviously
getting access to the globalfoudries (on reminding about
globalfoundries) -- because of similar process. However
we still continue to have lot of other processes of analog,
power and combined digital power and analog -- special processes
like BiCMOS BCD and so on.
Market differentiating factor of ST's Green semiconductor
portfolio: Francois Guibert: By 2011, there will be new
standards that will be enforced to have very low power consumption
for products (such as TV, set top box) when they are in
standby mode. We are focusing on that. We are working on
hybrid/electric vehicle, green lighting, e-bike, and plastic
electronics.
As per him,the differentiating strength of ST looks to
be combination of ST's multiple processes, technologies
and products for different market applications, which only
few have in the semiconductor market.
On the jovial question of shifting their head office
to Asia due to their huge presence in Asia in all aspects: Francois Guibert: (Laughing!!!) We don't need
to shift to Asia, we are already well entrenched in Asia,
as you see.
About the risk involved in ST's multi-domain specialty:
Francois Guibert: No, not really, it's exhausting in
terms of energy (laughing). Despite we have broad range
we have still been in strong position.
ST has leadership position in many segments, very few semiconductor
company presently following that strategy.
ST lab on chip to detect H1N1 faster: Francois Guibert: Using our lab on chip -- H1N1
can be detected in 2 hours and it can also detect the intensity
of the infection. It is a very new concept. We see these
devices can be used for testing food and many diseases.
