logo
We need product cos, not just services delivery resources: Jaswinder Ahuja

We need product cos, not just services delivery resources: Jaswinder Ahuja

As a partner in India's semiconductor mission, California-based Cadence Design Systems has played an important role in the country's tryst with semiconductors. Its managing director for India, and corporate vice-president, International Headquarters, Jaswinder Ahuja, who has been at the helm here since 1996, now has a bird's eye view. He has seen India's transition. In a video interview with Surajeet Das Gupta, Ahuja sheds light on the challenges and opportunities in India in this space. Edited excerpts:
While the manufacturing side of semiconductor has taken off, the design-led incentive scheme (DLI) faces many challenges. What is your assessment on the progress?
We have seen a great beginning in the manufacturing side, as the new plants being built are pulling in an entire ecosystem to support them, from equipment to chemicals and gases etc. In DLI, it's a chicken and egg situation, and its progress is not in line with the expectations. There are companies with intent to work in this space but they find the incentives inadequate or there are strings attached to it.
As you talk to many of the prospective companies, are there any other challenges which need to be tackled under the DLI programme?
For every project, the government — under DLI — is offering ₹15 crore. It is too little, almost inconsequential. If you look at the total project cost like manpower, tools and cost of buying some IP and building a prototype, when you add up, it is too little. For a non-complex design, the subsidy of 50 per cent should be around ₹100 crore.
Are there any other issues?
Yes. For instance, under the scheme you get the reimbursement only after spending, and considering the delays they create working capital challenges. Second, there are questions as to why it should be 50 per cent and not more? And many bigger players like L&T say they should also be eligible and not just smaller companies. There is also a demand that MNCs should be allowed to participate, but I think that should be a red line.
So what is the feedback from the government?
My understanding is that the government is analysing all the feedback and plans to use them to work on a revamped DLI 2.0, it is expected to address some of these concerns. But the real challenge is where are those companies and entrepreneurs who have compelling business ideas, that is what we have to watch once the DLI scheme is updated. We don't want to be only a services delivery resource like the GCCs. For our aspirations in the semiconductor space we need to have product companies.
Why have PE funds stayed away from funding design-led companies, but have a bet on AI?
PE funds see a clear line of sight in AI application companies on generating revenues and profitability in the next 12-24 months. If you invest in a semiconductor design it takes five years to get a product out, seven years to generate money and 10 years for Ebitda. But most PE funds exit in 7-8 years.
While we talk of the great chip design talent pool available in India for the world, we don't see too many entrepreneurs or startups in the space. What is the disconnect?
We do have amazing design talent, but that design talent is focused on execution. We do not have product business expertise in India, who understand the market, identify an opportunity, define a product and build a business case around it. In MNCs, it is undertaken by a separate team in the global headquarters. Once this is done, then a team builds the architecture that is again done in the headquarters.
The government wants to design and build a 'made in India' GPU. Do you see it to be feasible?
The US has placed certain restrictions on GPU exports which are designed mostly by Nvidia and AMD. So there is a possibility of a supply demand mismatch, especially when GPUs are key for AI and machine learning compute. Developing GPUs in India… if we start from now, producing it in volumes will take five to seven years. Can India do it, yes as like others, it does not have to start from the scratch. For the time being, there is a larger opportunity for startups in AI, in segments like automobiles and others. This compute architecture will solve the problems but at a different price point and performance.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Chennai Metrowater pilots robotic cleaning in sewage pumping stations to boost efficiency and workers' safety
Chennai Metrowater pilots robotic cleaning in sewage pumping stations to boost efficiency and workers' safety

The Hindu

timean hour ago

  • The Hindu

Chennai Metrowater pilots robotic cleaning in sewage pumping stations to boost efficiency and workers' safety

After deploying robots to clean sewer lines in some city zones, Chennai Metrowater is now piloting the use of robotic technology in sewage pumping stations in Thiruvanmiyur. The initiative aims to enhance operational safety and efficiency by minimising manual intervention. The water agency has already added Bandicoot Mobility, a robot that cleans maintenance holes of the sewer network, to remove clogged waste in sewer lines in zone 6 ( 9 (Teynampet) and 13 (Adyar). With robotic devices, which were developed by Genrobotics, a Kerala-based startup, helping to reduce clogging of lines for a year now, the water agency is exploring other innovative technologies to improve maintenance of sewer infrastructure. Officials of the Metrowater said an advanced robot with remote control unit and cameras, Wilboar, is being used to clean the sewage wells in Thiruvanmiyur sewage pumping station on a pilot basis. The robotic unit developed by Genrobotics is lowered into the wells that have a depth of up to 10 metre to remove the silt. With high-pressure water jets and grinders, the device grinds accumulated sludge into finer particles and clears them. This would eliminate the challenges in the use of conventional processes, improve efficiency of cleaning sewer wells and reduce complaints of sewage overflow in the pipelines. The Thiruvanmiyur sewage pumping station has a capacity to handle 15 million litres of sewage a day. Such robotic devices are already in use at Nellore, Andhra Pradesh and Thiruvananthapuram, Kerala, said officials. There are 375 sewage pumping stations in the city. Such robotic devices would be deployed in sewer well cleaning operations in other pumping stations following the success of the trial implementation. Rao, president, Chennai Metropolitan Water Supply and Sewerage Board Labourers Union, said it was a welcome initiative to ensure workers' safety and reduce manual intervention. Such efforts must be expanded to densely populated urban spaces and monitored for regular maintenance. Workers hired for sewer network maintenance should be redeployed to other roles. Nearly 2,850 labourers have been hired for sewer and water network maintenance in Chennai.

Logistics played key role in Operation Sindoor success, says Rajnath Singh
Logistics played key role in Operation Sindoor success, says Rajnath Singh

Economic Times

timean hour ago

  • Economic Times

Logistics played key role in Operation Sindoor success, says Rajnath Singh

Synopsis Defence Minister Rajnath Singh lauded Indian agencies for their seamless logistics management during Operation Sindoor, emphasizing its crucial role in the operation's success. He highlighted that modern warfare relies not only on weaponry but also on the timely delivery of resources. Seamless logistics management by Indian agencies-from mobilisation of the armed forces to delivering equipment at the right time and place-was a deciding factor in the success of Operation Sindoor, defence minister Rajnath Singh said on Sunday. ADVERTISEMENT In a virtual address at the convocation ceremony of Vadodara-based Gati Shakti Vishwavidyalaya (GSV), the minister said in the current era, wars are not just won by guns and bullets but by time-bound delivery of material, highlighting Op Sindoor as an example of excellent logistics management. "Whether it's soldiers fighting on the border or personnel engaged in disaster management, without coordination or proper management of resources, even the strongest of intentions weaken. Logistics is the power that transforms chaos into control. Power is measured not only by weapons, but also by timely resource management. Be it war, disaster or global pandemic, the nation which keeps its logistics chain strong is the most stable, secure and capable," he said. (You can now subscribe to our Economic Times WhatsApp channel) (Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online. NEXT STORY

Cheaper cancer care therapy earns big bucks for pharma company
Cheaper cancer care therapy earns big bucks for pharma company

Economic Times

timean hour ago

  • Economic Times

Cheaper cancer care therapy earns big bucks for pharma company

India's cell and gene therapy pioneer ImmunoAct has turned profitable in its first full year of operations, a rare feat in the country's emerging startup landscape where research-based pharma enterprises encounter serious scale and cash flow challenges. ImmunoACT, in which Hyderabad-based drugmaker Laurus Labs has roughly 34% equity stake, saw revenues of ₹62 crore with a profit before tax of ₹12 crore in FY25, according to sources. The year before, ImmunoAct had revenues of ₹11 crore. Founded by immunologist Rahul Purwar in 2013, ImmunoACT was spun off from the department of bioengineering department of IIT Bombay in 2018. ImmunoACT's NexCAR19 is the first indigenously developed breakthrough cancer CAR-T (chimeric antigen receptor T-cell) therapy approved by India's central drug regulatory agency in October 2023. NexCAR19 was formally launched in India in April 2024 at a price ~90% cheaper than its US and European counterparts like Novartis and Gilead, making it far more affordable for India and low-and-middle income countries, on its potential approval. So far, the therapy has been infused in over 350 patients across 70 hospitals in India. In CAR-T treatment, the patient's immune cells are extracted and through a maze of re-engineering processes infused back to recognize and kill cancer cells, giving a longer remission to patients as compared to the conventional options like immunotherapy or bone marrow transplants. The therapy is used when all other options are CAR-T dose (one-and-done infusion) costs around ₹30 lakh, which was initially priced at ₹42 lakh, and is expected to see a further decline as demand picks ImmunoACT has recently appointed former managing director of Roche India V Simpson Immanuel as its strategic Purwar added, "We needed someone who understands not just the commercial landscape, but also the nuances of innovation, patient access, and global expansion." Earlier this year, Immuneel Therapeutics, backed by leading names like Kiran Mazumdar-Shaw and globally renowned oncologist Siddhartha Mukherjee secured approval for Qartemi, its cell therapy for adult B-cell non-Hodgkin Lymphoma, in India. Companies like Cipla, Dr Reddy's Labs and Bharat Biotech are investing heavily in new CAR-Ts. Globally, CAR-Ts are at the frontiers of a range of cancer treatments, attracting billions of dollars in investments from large drugmakers. The market for such therapies is expected to touch $134 billion by 2034 from around $10 billion at present.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store