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Outsourcing Trend for AMS Semiconductor Design Service

Industry trend – Finding high quality engineers in US is a real challenge for companies. With the economic meltdown and high cost of education in the US the influx of foreign students has slowed down, which would translate to less engineers available to companies. In conjunction the cost of doing business in US has risen which encourages companies to find alternate locations. As a result of the above two forces, countries like India and China have become a hot spot for design service companies eager to serve the US market. A word of caution: Big distinction between a design service company and an AMS design service company. High level of commitment along with professional training is required from engineers to be  successful in AMS design services. A handful of companies based in India are already competing globally in this domain .

As the world knows, software services and digital design services are very mature markets in India. In this domain work is done from off-shore either through local companies or through subsidiaries of MNCs in India. Almost all US semiconductor companies have design centers in India which are located in hot spots like Bangalore, Noida/Gurgaon, Pune or Hyderabad.

In contrast, there has been more reluctance to outsource Analog design since it is considered black magic. This is changing as the trends favoring the migration of software and digital work to places like India are also relevant to analog design and test areas.

Market by numbers – Software, Firmware, Digital design outsourcing and local markets have already grown to large numbers in India. Within the global sourcing industry, India was able to increase its market share from 51 per cent in 2009, to 58 per cent in 2011, highlighting India’s continued competitiveness and the effectiveness of India-based providers delivering transformational benefits (Source: NASCOMM).

The Indian design services industry will maintain an impressive growth rate of 20.2% during the 2007–2012 timeframe, and will reach US$3.4 billion by 2012. The captive centers of the IDMS in India currently work on cutting edge technologies and the latest process nodes. (Source: In-Stat)

AMS Ecosystem – To build a world class AMS design service company an ecosystem of Analog & Mixed-Signal Services & Solutions has to be created. Highly talented engineers are the heart of the company; hiring, training and motivating them is the key focus for AMS design service companies. Being in the service industry there can never be enough attention to customer satisfaction.  AMS companies put their engineers through rigorous technical and professional training to meet industry quality standards

A to Z Ecosystem – Outsourcing analog design and test work is not as simple as software or digital design since the process is not well defined. Very few companies have succeeded in building a sustainable business model. A to Z Tech Exchange provides a web-based portal for prospective outsourcing vendors and prospective clients to register and use a common platform. A to Z Tech Exchange will provide a comprehensive set of services like vendor certification, automated vendor matching and hassle-free project management via the common web platform

Values, Customer service and Work environment –  A to Z Tech Exchange improves the business performance of clients using proven project management methods. As a semiconductor design service company it is of utmost importance to protect client’s IP. At A to Z Tech Exchange, we expect our vendors to know the significance of IP protection and ensure they take measures to prevent any leaks.  Honesty and Integrity are the values on which the company is founded. Customer service is stressed upon and vendor performance is heavily graded based on professionalism and customer service. We achieve rapid results in organizations and install the skills, processes and work environment to create ongoing value.

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