From Tata to Tech Trailblazer: Raja Manickam’s blueprint is for turning India into a worldwide semiconductor chief by means of native innovation and expertise
Raja Manickam, touted as one of many brains behind Tata Group’s semiconductor foray, parted methods with the group early this 12 months. He’s now busy organising a fabless semiconductor firm in India and specializing in “creating demand within the nation.”
He says, “I’m assured that in 5 years, India shall be a significant participant in exporting electronics, together with inverters and EV chargers. The Indian corporations I’m collaborating with as we speak would be the ones propelling me onto the worldwide stage in 5 years.”
Moreover, he believes that Indian corporations are at all times Tier III for semiconductor “large boys.” At his newly minted enterprise, IVP Semiconductor, Indian corporations will at all times preserve their place as Tier I companions. Fascinating excerpts from the interplay with Raja Manickam:
Q. Why did Raja Manickam half methods with Tata Group?
A. Tata is a wonderful firm to work with. They’ve grand plans, and I completed what I got down to obtain once I joined them. I used to be among the many first few people to conceptualise Tata’s semiconductor plans. There got here a time once I wished to contribute extra to India’s semiconductor mission from an exterior perspective. I’ve at all times been an entrepreneur and have a penchant for expeditious motion. I firmly consider in creating alternatives for others.
In that sense, I established alternatives and raised consciousness for the Tata Group, which is now primarily targeted on execution. I’m additionally actively concerned in different semiconductor initiatives in India now.
Q. Other than these initiatives, what else are you doing now?
A. I’m concentrating on stimulating demand for what we ‘Make in India.’ The dialogue has largely revolved round ‘Making Semiconductors in India,’ however somebody wants to deal with the demand aspect of the equation. I’ve taken it upon myself as a result of as soon as there’s ample demand, manufacturing will naturally comply with. My present mission is to generate that demand.
Q. How will you method this?
A. There are a number of sides to it. I’m establishing a brand new fabless chip firm that focuses on the ability market. These are elementary and important analogue parts required for a broad vary of functions, together with photo voltaic, renewables, EVs, shopper electronics, IoT, and all issues power-related.
To place it merely, I’m compiling a list of important merchandise and options. These core choices will underpin India’s transition from fossil fuels to wash vitality.
Q. Isn’t the demand already there?
A. Whereas there may be certainly demand, it at the moment represents solely a fraction of what it will likely be within the years to come back. Moreover, this demand is at the moment being met by main worldwide gamers positioned exterior India. My standpoint is that I’m an Indian firm, and India has important demand, so why not produce Indian chips?
From a philosophical perspective, we’ve seen that the Chinese language choose Chinese language merchandise, Europeans go for European choices, and so forth, so long as the capabilities are current. I don’t see any purpose India ought to be totally different.
Q. So, will your new firm create this demand?
A. Sure and no. We are going to formally unveil our new firm in December this 12 months. Named IVP Semiconductor, it has already initiated discussions with a number of corporations and even despatched out catalogues. IVP will function in a fashion akin to TI, NXP, STMicroelectronics, or OnSemi. My firm will suggest the inclusion of my chips of their total product designs. These chips would require manufacturing, and I hope IVP can accomplice with companies like Tata, CDIL, and Kaynes for packaging.
As soon as we attain a sure threshold, semiconductor fabs will comply with. Presently, I might want to procure wafers from Taiwan and Japan. On this means, I’ve stimulated demand for chips made in India and for native wafer fabrication.
Q. Will white labelling be part of your plan?
A. If you happen to take a product and rebrand it as your individual, there’s no substantial worth added. It basically turns into a buying and selling enterprise. Most OSATs (outsourced semiconductor meeting and take a look at) won’t entertain this method as a result of prospects gained’t mean you can apply their options along with your model identify.
Some entities that lack a presence in India may allow this with the situation of receiving royalties. I don’t understand this as a viable long-term enterprise mannequin.
Q. Are Indian corporations open to buying chips from one other Indian firm? Are there potential issues about ‘high quality and worth’?
A. My elementary philosophy revolves round being a semiconductor specialist. I’ve been concerned on this area a number of instances, studying not solely what to do but additionally what to keep away from. We’ve established the groundwork for the way international giants like Foxconn and Tata supply parts.
The simplest approach to assure high quality is thru rigorous testing, and I’m at the start a take a look at engineer. After we ship parts, they are going to be of the best high quality. Our distinctive promoting level lies in our testing capabilities. As for worth, IVP gained’t merely provide parts however will constantly work on price discount. Initially, working with slim margins shall be our major technique. As our operations broaden in India, price benefits will turn out to be extra pronounced.
Q. Why ought to Indian corporations select you over the massive boys?
A. Our unique focus is on the Indian market. Whereas we gained’t immediately compete with Infineon, STMicroelectronics, or NXP, we acknowledge that the majority Indian prospects at the moment occupy Tier III positions with these giants.
To us, these Indian prospects shall be Tier I. We intend to construct sturdy partnerships with our prospects, offering higher help than what these giant firms sometimes supply by way of utility and system help. IVP will contribute to the general design of the product/answer and scale back improvement prices.
Q. Will the business giants mean you can carve out your share available in the market?
A. A sound query! Many of those business giants had been my shoppers throughout my tenure at Tessolve. I perceive their operations, and plenty of have begun recognising India as a considerable market. We’re totally conscious that we should create a compelling worth proposition to ascertain a foothold in India.
Furthermore, as we’re solely concentrating on the Indian market, there shall be a lack of price benefits related to our opponents. Our cost-effectiveness will rise as semiconductor fabs start to emerge in India. We’re additionally open to collaborating with people and establishments. I’ve a deep understanding of how the business giants perform.
I’m not involved about competitors, which is why we’re venturing into this sector in India. Our major goal is to seize market share initially. There’s no enterprise the place you begin turning a revenue from day one.
Q. What if one among these large boys proposes an acquisition of IVP??
A. My goal is to ascertain an area firm. If one among these business giants approaches us to turn out to be their Indian arm, we’d entertain the dialogue. I firmly consider that in 5 years, India will emerge as an export hub for numerous digital merchandise similar to inverters and EV chargers.
The Indian corporations I’m collaborating with as we speak are those that can catapult me onto the worldwide stage 5 years from now. That is when the business giants intend to arrange manufacturing amenities in India, very similar to in China. Therefore, it’s crucial to create demand in India.
Q. What degree of funding do you anticipate for IVP Semiconductor?
A. Initially, we’re an funding starting from $20 to $25 million. A few of my shut associates are a part of the founding group. We’ve collectively dedicated $5 million to the corporate. The rest shall be raised, and the benefit we now have is that because of my prior ventures, we don’t must actively search potential traders this time.
In reality, we now have a surplus of traders desirous to take part in IVP. We’ll make that call thoughtfully and progressively. The potential for an Indian fabless chip firm is crystal clear of their minds. This may additionally finally contribute to establishing a fabrication facility!
