Analog Devices to Make Custom Chips for India
A global semiconductor leader, Analog Devices, last year recorded $12.3 billion in revenue. Even though the contribution from India towards its global revenue share is minimal, India is emerging as one of the fastest-growing markets for Analog. Besides, the US-based semiconductor company also has plans to develop chips locally. “We are particularly interested in the industrial market, given India’s emergence as a manufacturing hub. The shift towards smart factories is evident, and Analog, with a robust portfolio in industrial and process automation, plays a significant role,” Srinivas Prasad, senior director and site head at Analog Devices India (ADI), told AIM during an interaction on the sidelines of the IESA Vision Summit 2024. Vivek Tyagi, managing director-field sales at ADI, concurs. He believes that the Indian market will definitely explode in the next seven to eight years. “So, we expect significant growth accordingly, even though this year is a little soft globally, we are still forecasting a 20% growth in India from our sales,” he told AIM. In fact, Analog Devices anticipates India’s contribution to global revenue share to increase multifolds by 2030. The growth forecast is a result of India’s renewed focus on manufacturing. In the recent Union budget, the government allocated INR 15,500 crore for various electronics manufacturing programmes, including the semiconductor mission and mobile and IT hardware PLI schemes for FY25. En Route to India Analog Devices, headquartered in Wilmington, Massachusetts, operates an R&D centre in India. The company serves around 100,000 customers across various industries, including communications, computer, instrumentation, military, aerospace, automotive, and consumer electronics applications. Even though the company has an R&D centre on almost all continents, each chip that undergoes tape-out proudly bears the contribution of the Indian team. “We anticipate this trend to continue, with more innovations, products, and strategic solutions emerging from India,” Prasad added. Moreover, given India is one of Analog Devices’ fastest-growing markets, the company is considering building some chips in India to cater to the Indian market. However, Analog Devices has no plans to fabricate its chips in India. “The crucial aspect is the design, which is paramount because it involves gathering precise specifications from the customer, and having the design team in India ensures the creation of the right chip that can then proceed to manufacturing,” Tyagi said. Nonetheless, given so many Outsourced Semiconductor Assembly and Test (OSAT) units are coming out of India, he won’t write off the fact that the company could test and package some of its Indian chips locally. Unleashing Innovations Semiconductor companies envision not only potential revenue growth but also innovation within the automobile industry. As the sector shifts towards electric, hybrid electric, and autonomous vehicles, the demand for semiconductors sees a significant surge. Analog Devices has also unveiled innovations in battery management systems (BMS), cockpit solutions, and advanced driver assistance systems (ADAS) aimed at assisting the automotive sector in transitioning towards a more software-defined vehicle. In India, the company is taking its innovation to both two and four-wheeler original equipment manufacturers (OEMs) in the country. “For EVs, their reliance on batteries as the primary source of fuel underscores the critical importance of battery management. Analog Technology, an expertise of Analog Devices, plays a pivotal role in this domain. Analog Devices holds a commanding position, accounting for over 50% of the global market share in battery management solutions for cars, solidifying a robust presence, particularly in India,” Tyagi said. Moreover, Analog Devices’ automobile-focussed innovation also revolves around enhancing the cabin experience. From multimedia and telematics to improved battery performance, the shift to EVs brings a demand for differentiated experiences. “As this transition unfolds, consumers, especially in India, are increasingly seeking a differentiated experience in their cabin environment. This extends to advanced infotainment systems, improved air conditioning, a desire for a comprehensive surround experience, and advancements in camera technology,” Prasad said. Analog Devices offers a range of camera solutions for ADAS, powered by their semiconductor chip. These are complete automotive grade solutions powered by GMSL2 (Gigabit Multimedia Serial Link) interface. “The focus is also on developing capabilities for vehicle-to-vehicle communication channels. While certain features may necessitate sophisticated infrastructure, there is a growing willingness among consumers to invest in enhanced automotive experiences,” Prasad added. Invests heavily in AI For Analog Devices, AI is also a big focus area and the semiconductor company has developed AI chips, according to Prasad. The company is also closely monitoring emerging trends and reimagining conventional approaches using AI. “I believe every segment, from sensors to the cloud, will be influenced by AI. This is also our trajectory,” he said. However, at the same time, it’s also crucial to discern which applications are truly beneficial, avoiding unnecessary additions. Analog Devices asserts that its focus is on pioneering intelligent edge solutions with smart, efficient algorithms. While conventional algorithms served a purpose, AI is now enhancing them for greater accuracy and efficiency. “In sectors like vision sensing in automotive and robotics, our focus is on crucial factors like collision detection and providing a comprehensive 360-degree view for informed edge decisions. Analog Devices is actively advancing AI-based solutions in these areas,” he said. Generative AI Experiments Today, we are in the era of generative AI and companies across diverse industries are actively exploring various use cases for this transformative technology. Many aspects of these technologies are still evolving. Prasad feels creating countless use cases is essential for practicality, especially in scenarios where false positives can have severe consequences, such as healthcare. Currently, Analog Devices is testing generative AI internally in areas of manufacturing and chip designing. “We focus on non-critical applications, as the technology is still in the early stages, with everyone engaged in their research and development phase. Commercialisation benefits will take time to materialise,” he concluded.
The company is also open to the prospect of testing and packaging some of these chips in India
Given India is one of Analog Devices’ fastest-growing markets, the company is considering building some chips in India to cater to the Indian market. 
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I have a keen interest in creative writing and artificial intelligence. As a journalist, I deep dive into the world of technology and analyse how it’s restructuring business models and reshaping society.