Texas Instruments Inc (TI), world leader in digital signal processing (DSP) and analog technologies, will continue to focus on research and development (R&D) and product innovation in India.
However, the US-based firm has no plans to set up fab facility in India to manufacture silicon chips.
"We have no plans to set up a fab facility in India. Our investment will be on research and product development in multiple areas to add value to customers. Though we have couple of our own fabs, we also use wafer foundries worldwide for sourcing chips.
"If some of these foundries set up their facility in India, we will consider sourcing from them than making our own chips," TI president and CEO Richard K Templeton said on Monday.
Welcoming the semiconductor policy announced by the Indian government recently, Templeton said it would motivate the global semicon industry to look at India as a base for chip manufacturing.
"The policy also signals India has come of age as a growth market for semicon and the role the domestic industry will play in the global electronics arena," Templeton said after announcing a TI-funded research programme with the premier Indian Institute of Science (IISc) in Bangalore.
The Dallas-based TI was the first multinational to set up an R&D facility in Bangalore way back in 1985. Playing a lead role in building the Indian semiconductor ecosystem for the emerging electronics market in the sub-continent, the wholly-owned subsidiary expanded its operations by setting up its second R&D facility in Chennai last year.
"In our business strategy, India is important for us as a future market and a global leader in technology perspective. TI India has contributed significantly in DSP, analog and micro-controller technologies, leading to product development for wireless, industrial, consumer, medical and automotive markets," Templeton pointed out.
The company has invested $2.2 billion in 2006 in R&D worldwide as against $1.3 billion in capital expenditure. With 31,400 employees, it has manufacturing, design and sales operations in 25 countries worldwide. Its headcount in India is about 1,800 techies.
As an integral part of TI's global engineering teams, the subsidiary works with global corporations, India's top 100 and SME (small and medium enterprises) for locally designed products in communications and industrial space.
"About 50 Indian firms are working as part of our global third party programme to evangelise the concept of distributed innovation by enabling local firms to leverage the power of TI silicon and TI marketing channels to reach out to customers worldwide with cutting-edge solutions across verticals," said Biswadhip Mitra, TI India managing director.
Having set up one of the first of its 550 DSP labs in India at IISc in 1996, TI is set to launch an analog university programme for engineering colleges across the country to build competencies in the domain.
"The rising demand and consumption led economy in India has raised substantial interest for us in the market. Advance technology is needed to sustain and lead this fast growing market," Mitra noted.
Incidentally, TI's India team designed and developed the single chip for mobile handsets to make the end-product superior in performance and drive down the cost. Research is also underway to add more functionalities and applications for making smart (cell) phones that can surf the Internet, download data, pictures, music and videos at a faster rate.
Going forward, TI plans to leverage its Indian talent pool to design and develop chips for making sensors that can be used for various industrial and energy systems.