India will need to make significant investments into infrastructure soon if domestic manufacturing is to compete and grow to global scale.

STMicroelectronics – world’s leading semiconductor provider offering one of the industry’s broadest product portfolios, ST serves customers across the spectrum of electronics applications with innovative semiconductor solutions by leveraging its vast array of technologies, design expertise and combination of intellectual property portfolio, strategic partnerships and manufacturing strength.

 

STMicroelectronics is one of the world’s largest semiconductor companies with net revenues of US$ 8.49 billion in 2012. The company was created in 1987 by the merger of two long-established semiconductor companies, SGS Microelettronica of Italy and Thomson Semiconductors of France, and has been publicly traded since 1994. Its shares trade on the New York Stock Exchange (NYSE: STM), on Euronext Paris, and on BorsaItaliana. The group has approximately 48,000 employees, 12 main manufacturing sites, advanced research and development centers in 10 countries, and sales offices all around the world.

Among the pioneering visionaries of the industry, ST was one of the very first microelectronics companies to recognize India’s potential and, by 1990, had begun its design operations in the country. Starting from just 4 employees 25 years back, it has grown to over 1600 employees; mainly engineers. Coupling a rich pool of talent with a well-focused strategy, ST’s advanced R&D centers at Greater Noida and Bangalore are significant contributors to almost all key application segments of the company. Greater Noida is ST’s largest design center outside Europe.

Offering one of the industry’s broadest product portfolios, ST serves customers across the spectrum of electronics applications with innovative semiconductor solutions by leveraging its vast array of technologies, design expertise and combination of intellectual property portfolio, strategic partnerships and manufacturing strength. ST focuses its product strategy on sense and power technologies, automotive products, and embedded-processing solutions and is among the world leaders in a broad range of segments, including semiconductors for industrial applications, inkjet printheads, MEMS (Micro-Electro-Mechanical Systems), MPEG decoders, smartcard chips, automotive integrated circuits, computer peripherals, and chips for wireless and mobile applications. In India, ST carries out design implementation work for System-on-Chips (SOC), Embedded Software, VLSI blocks, System Solutions and reference designs for various domains e.g. Digital Consumer like STB, Automotive, Imaging, Industrial and IT.

ST products are found everywhere microelectronics make a positive and innovative contribution to people’s lives.

Outlook of Indian Electronics Industry

There are two aspects of Indian electronics industry

  1. Research and Development: India has been a favorite destination for the establishing R&D centers for a large number of multinational company. STMicroelectronics started its design operations way back in 1987 and now has about 1600 employees in country. The attractiveness of India for doing R&D for MNC’s can be attributed to the following factors;
    1. India has been a huge potential market and now this potential is steadily being realized. For example, the Electronics industry is forecast by various stakeholders to grow over the next decade to 400bn$ from around 70Bn$ currently. Therefore, it makes complete business sense for the technology companies to understand this market well and build R&D capabilities locally in order to effectively serve the domestic markets with suitable products/solutions
    2. The second important factor is once again steady emergence of the overall ecosystem. Beginning with the presence of a large number of technical universities and talent that comes out of these colleges, there is growing expertise in the engineering base in the country. The technology brain-drain that was prevalent in earlier years is no more an issue. This retentionof experienced talent within the country, is being capitalized by this growth. Moreover, one can witness multiple new startups in various domains, innovative products being designed, more collaborative work being done etc. all this is enriching the ecosystem that is so important for growth of any industry.
    3. Last but not the least, the Indian Government has well realized that the growth of this vital industry and ecosystem i.e. Electronics & associated industries, is of paramount importance and it has taken strong, positive measures recently. For example, Electronics Policy 2012 was established to spur this growth. This is one of these important initiatives. Apart from this, the Indian Government had been encouraging companies to establish their R&D center in the country with the right kind of policies e.g. STPI schemes. The government’s focus on this sector is acting as a catalyst to make India a favorite business destination.

2. Local Market and Electronic Consumption: According to the latest research from Gartner in April 2013, India’s semiconductor consumption was $8 billion in 2012, a 7.4 percent increase from 2011, and Gartner projects it will grow to $9.6 billion in 2013, a jump of 20 percent. This high growth in local consumption of electronics requires an increased reliance on imports. Therefore, there is clearly a huge opportunity to bridge the gap between the local consumption and electronic manufacturing in India and that is why the government recently proposed initiatives to boost domestic manufacturing under the National Policy on Electronics.

ST Focus

ST focuses its product strategy on sense and power technologies, automotive products, and embedded-processing solutions. The Sense and Power segment encompasses MEMS and sensors, power discrete, and advanced analog products. The Automotive portfolio covers all key application areas from powertrain and safety to car body and infotainment. The Embedded Processing Solutions include microcontrollers, digital consumer and imaging products, application processors and digital ASICs.

ST products are found everywhere microelectronics make a positive and innovative contribution to people’s lives. The Company’s world-class products and technologies serve to:

  • deliver compelling multimedia experiences to consumers anytime, anywhere – in the home, in the car, and on the go;
  • increase energy efficiency all along the energy chain, from power generation to distribution and consumption;
  • provide all aspects of data security and protection;
  • and contribute to helping people live longer and better by enabling emerging healthcare and wellness applications.

About Manufacturing

To provide its customers with an independent, secure and cost-effective manufacturing machine, ST operates a worldwide network of front-end (wafer fabrication) and back-end (assembly and test and packaging) plants. ST’s principal wafer fabs are located in AgrateBrianza and Catania (Italy), Crolles, Rousset and Tours (France), and in Singapore. The wafer fabs are complemented by world-class assembly-and-test facilities located in China, Malaysia, Malta, Morocco, the Philippines and Singapore.


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