Month: February 2017
I am really intrigued by this headline! First, SEMI, and now, The Information Network, are making the forecast for China!! However, what has been India doing? Nothing!!
Massive investments in Mainland China are finally showing benefits as the ratio of ICs made in China versus those imported into China increased from 27 percent in 2015 to 29.1 percent in 2016, according to the annual update of The Information Network report entitled “Mainland China’s Semiconductor and Equipment Markets: A Complete Analysis of the Technical, Economic, and Political Issues.” Driving the growth of ICs made in China are a large number of fabs that are in construction and planning production over the next few years, said Robert Castellano, president, The Information Network.
Next, most of the advanced semiconductor packaging is done in China. There are over 150 foreign and domestic packaging companies based in China. Tied to the packaging industry is the need for back-end semiconductor equipment. With its robust IC program, China represents a strong growth area for advanced packages, used to house and protect the ICs. These advanced packages include 3D, TSV (through silicon vias), FOWLP (fan-out wafer level packaging) and flip chip.
According to The Information Network:
* Investments by the Chinese government and foreign semiconductor manufacturers have started having an impact on meeting China’s internal IC semiconductor needs.
* A surge in semiconductor growth in China merely means these same number of chips won’t be made elsewhere — a buying opportunity for semiconductor manufacturer stocks.
* Large equipment companies will benefit from new fabs built but will face increased pricing pressure from new semi manufacturers because their traditional customer base has changed.
* Smaller semiconductor equipment suppliers will benefit from a new customer base that had been traditionally buying from the same vendor.
* Rudolph Technology is an example that benefited last year, positioning itself with its product line and strategic focus on building a sales infrastructure in China.
According to SEMI, USA, China is projected to be the top spending region for fab equipment in 2019 and 2020. Of the 20 more fab projects, SEMI is tracking up to 16 potential 300mm fabs to be constructed or beginning to ramp up throughout the forecast, with the investment targeted for the memory and foundry sectors.
Is India even listening?
India continues to remain cautiously optimistic on business performance as far as the business outlook is concerned. The graying of salary increases in India is a reflection on how India Inc. is coming of age. The macro question remains: if this represents a blip or a trend! These are among the findings of the 21st Annual India Salary Increase Survey by AON Hewitt.
The survey projects a drop in pay increases to an average of 9.5 percent across industries. While the inequity of pay remains a concern, the key reasons cited by the various employees across 1,000+ firms for voluntary attrition are role stagnation and limited growth opportunities.
For almost a decade, manufacturing firms in India are budgeting higher salary Increases than services firms. A lower base and higher expectations has driven this behavior. Although, with increasing pressures on margins and improved salary base, the difference in the budgets has been gradually declining since 2013. Along with high performance – high potential and hot skills remuneration are now gaining acceptance.
The gradual slowing of pay increases and higher emphasis on productivity and performance indicates the ‘graying’ of salary budgets for India. Some industries are impacted more than others – and AON Hewitt sees faster moderation of pay increases in industries such as technology, telecom, consumer etc.
Inspite of lower salary increase budgets, top performers will continue to get lucrative hikes as companies focus on performance and criticality. While attrition was contained at a broader level, key talent attrition takes a hit. Differentiated people and pay practices slowly taking the edge away from compensation for Key Talent Management.
Projections for 2017 include salary increase projections across consumer Internet companies, life sciences, professional services, chemicals, entertainment media, automotive/vehicle manufacturing, and consumer products.
The study, the largest and the most comprehensive of its kind in India, analysed data across 1,000+ companies.
Anandorup Ghose, partner at Aon Hewitt India, said: “Political changes and economic headwinds have had an impact on business performance. However, the trend this year reflects a gradual slowing of pay increases and higher emphasis on productivity and performance – quite literally a ‘graying’ of salary budgets for India.
“The last year has shown organizations take a strong view towards performance differentiation and not only have bell curves become sharper, the pay differentiation between top and average performers has also increased.”
The Confederation of All India Traders (CAIT) and MasterCard have announced a 90-day ‘Digital Apnao Vyapar Bhadao’ campaign to accelerate the adoption of digital payments among traders in India.
In this campaign, CAIT and MasterCard will organize 500 camps across 50 cities in India over the next 90 days. It aims to on-board 5 lakh merchants and traders by bringing together financial institutions and other payments facilitators under one roof.
The camps will follow a three-step process of completing KYC documents, opening merchant accounts and helping them adopt the right digital payments solutions for their businesses.
Ravi Aurora, senior VP, Global Policy Affairs and Community Relations, MasterCard, said that the stress is on trade, As of now, around 10,000+ merchants have been asking for PoS devices daily. There is a need for more incentives across SMEs and consumers, so that they do not go back to cash-based commerce.
This step is in line with the Indian government’s multiple objectives of combating tax evasion, drive electronification, and prevent circulation of counterfeit currency. As of now, India has 1.5 million PoS locations and 0.2 million ATM locations. MasterCard is committed to a ‘less-cash society.’
Praveen Khandelwal, secretary general, CAIT, said that digital payments are very important for traders. It is also a pre-condition to embrace GST. He added that the first camp will be held today, Feb. 7, in Nagpur, followed by other cities, including, the metros.
Friends, I just learnt that Pradeep’s Point has been selected as the Top Blog for Design and Verification by Bucharest, Romania-based firm AMIQ Consulting. Once again, I am extremely grateful to all of you for helping me achieve this awesome distinction!
This recognition is now my 20th overall, and 16th, including one national recognition, for all of my blogs. That 19 such recognitions are from the overseas, is probably evident of the fact that electronics and semiconductors are well read, followed and even written overseas.
Am I wrong? I sincerely hope not, as there is a lot of work being done in electronics and semiconductors within India. The one thing missing from all of this is the presence of leading Indian firms — origin or based — in electronics and semiconductors. I hope that changes in future. And, till that happens, all of those studies depicting India as an electronics hub, are wasted.
As for the blog awards, I’ve mentioned that it’s my 16th recognition, including one national recognition, for all of my blogs. I have now completed a decade of writing (or blogging), and that’s a great result, won’t you all agree? 🙂 I didn’t even know that the blogs will help me achieve so much international (and national) recognition back in 2007, when I returned to India, from Hong Kong.
I started these blogs, back in 2007, to assist my friends, Kevin Ho Fai Lau, Zoe Lam, Alfred Cheng, Yashan Jo Kuo, John Ng, Claudius Chan, Kittie Wong, Len Sangalang, and some others.
Later, Usha Prasad (who was with me till 2012), S. Uma Mahesh, S. Janakiraman, Anand Anandkumar, Jaswinder Ahuja, Montu Makadia, Veeresh Shetty, Raghu Panicker, Dr Pradip Dutta, Vivek Sharma, Vivek Saxena, Sanjeev Keskar, Sathya Prasad, Dr. Satya Gupta, Rahul Arya, Malcolm Penn, Dr Walden Rhines, Dr Aart de Geus, Shinto Joseph, as well as late Ms Tarana Uthayya, Sanjana Shetty, Varsha Poonacha, Padmini Hegde, my niece, Aanchal Ghatak, my son, Prateek Chakraborty, and several others joined the fray.
A decade of winning awards and titles has been a tremendous journey. Thank you to all of you who have made this possible! 🙂 Thanks are due to my wife, Shima Chakraborty, for putting up with me! 🙂