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ELECTRONICS
HARDWARE
Global trends in IT Hardware:
Business Opportunities for India
March 11, 2005
Interactive Meeting with Mr. Michael R
Splinter, President & CEO, Applied Materials,
Inc.
Mike Splinter, considered one of the leading
CEO's in the World. He is a 30-year veteran
of the semiconductor industry and has led
some of the largest semiconductor manufacturing
operations in the world, during which time
he has been at the forefront of many of
the industry's most significant technology
innovations and transitions. He was responsible
for the critical development of manufacturing
technologies for major industry wide transitions,
including the move to 300mm wafers and the
shift to 130nm devices.
Headquartered in Santa Clara, California,
Applied Material is world's largest supplier
of products and services to the global semi-conductor
industry. It currently employs approximately
13,000 people in over 65 locations throughout
China; Europe and Israel; India, Malaysia
and Singapore; Japan; Korea; Taiwan; and
the United States.
Mr. Splinter's views on making India an
attractive destination for manufacturing
IT Hardware, global developments in semi-conductor
industry and investment opportunities.
- Companies, both Indian and MNCs, are
beginning to take, some serious first
few steps towards setting up manufacturing
operations in the hardware sector in India,
however, a lot more needs to be done for
opportunities are immense and time is
short. The most important imperative for
focusing on manufacturing comes from significance
of world trade and its linkages to economic
development.
- The IT hardware sector has potential
of employing over 5 million people in
India, against current employment level
of about 1.5 million.
- 20 million mobile phones are added
every year and unfortunately, none of
them are made in India.
- Auto manufacturing has been a great
success in India.
- With both domestic and global demand
going strong, India has potential to build
100 billion plus hardware industry, over
the next few decades.
- Semi-conductor industry has been trend
setting, bench-mark industry in the world.
- We should try to capitalize on the reduction
of time, to design a product. We can have
engineers in the US be working by day
on a product design, we can have engineers,
here in India working, if we are talking
about US time zones, at night, on a design
and reduce the amount of time, it takes
us to develop and put a particular element
of our products or a whole product in
the manufacturing. When we can do that,
we get a competitive advantage over our
competition.
- There were 700 million cell phones sold
in the world, last year. Only about 30
million of them, sold here in India. There's
a much greater potential than a 100 million
per year. That's dramatic amount of electronics
demand that would have to be imported
to the country but when you start thinking
about the volume of a hundred million
units, a year, you think that, you have
to have the assembly, much of the assembly
of those units here and certainly the
amount of electronics that it demands,
may be 50 dollars per unit, that is 5
billion dollars of electronic components
alone that will be delivered in cell phones,
per year, maybe in three or four or five
years from now. That alone could fill
several semi-conductor manufacturing factories.
- But cell phones aren't the only thing
that is hot, computers are still hot,
white band, Wi-Fi, Wi-Max, evolution of
white bank data communications is just
starting, only 2% of the world's population
has access to high speed data, that number
has to increase and should increase to
a high percentage of the world's population
and it has a unifying affect in data and
communications and video.
- There is this TV industry here today
manufacturing industry today. It is going
to be able to move the times and manufacturing
LCD panels and make that transition, drive
the cost down of those products so that,
everybody who wants to have a flat panel
TV can afford one, have access to one
and these are the kind of things that
are changing in our lives and then, you
just have to think about the emerging
markets of the world, the developing economies
of the world, this has been one, China
another, one-thirds of world population
but Russia, the Middle East, Africa, these
are economies that are going to be growing
over the next twenty or thirty years and
are going to want to have the impact of
the electronics industry occur in their
cultures, in their environments.
- Then there is computing. Only 3 million
computers are sold in India during a year.
The cost should come down so more are
sold, however, that number is so small
relative to the overall 200 million computers
that are sold in the world.
- Semi-conductor manufacturing is the
most sophisticated or one of the most
sophisticated manufacturing capabilities
in the world. Semi-conductor manufacturing
has moved really around the world from
US and Europe to Japan, to Taiwan, to
Korea, to South East Asia, to China but
not to India.
- India has so many advantages and a great
workforce.
- Semi-conductor manufacturing is really
the foundation of electronics manufacturing.
Applied Materials can help. We support
every semi-conductor manufacturer. However,
we have been the first mover, as the semi-conductor
has moved around the world and with our
already existing presence here. We are
in an excellent position to support, to
enable and ensure the success. I am just
waiting for the opportunity to help and
work with you to enable that reality,
here in the country.
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