Most Indian design houses compete on cost, study finds

K.C. Krishnadas, EE Times
(10/17/2006 12:20 PM EDT)
 
BANGALORE, India — The majority of India's VLSI design firms compete on cost, while relatively few are mature companies involved in end-to-end projects and even fewer are considered co-innovators, according to a new report by Frost & Sullivan.

The cost-based strategy leads to lower value addition and high investment in the workforce, and is marked by a high rate of staff turnover. The numbers of such firms in India is high, but the value they bring to the business at the end of the day is minimal, according to the report, which details the Indian semiconductor scene.