The world’s semiconductor manufacturing hub is always on the move. In the pre - 80s, it was the US. The hub was relocated to Japan in the 80s, then Taiwan, Singapore and Korea in the 90s. All these past and present hubs registered a severe decline in 2001. There is a constant price pressure on the Semiconductor industry due to globalization. China has seized this as major opportunity to get into this segment of manufacturing industry and has accelerated its momentum to become a major semiconductor player in the world market.
Semiconductor manufacturing in general is a high technology, capital-intensive business that requires a very specialized environment to thrive in and being good is not enough in this survival-only-for-the-fittest industry.
HSMC is founded by an experienced team Non Resident Indian (NRI) of Silicon Valley. HSMC plans to bring integrated circuit (IC) manufacturing, foundry management and operating services to India. Pioneering the open foundry business model in the India, HSMC would provide fab capacity for a growing number of design houses that need IC fabrication capacity and integrated device manufacturers that outsource their production. HSMC has developed a prudent business model to build a viable and competitive foundry model in India that will enable the company to produce impressive results resilient to cyclical movements of the industry.
The “Perception” is key to the success. When an overseas company looks to start a software development, it looks towards India as its destination; China and rest of the world is picking up on it now. India has undeniably emerged as a leading player in the world for the software development. However, when one looks for off-share IC manufacturing, they tend to lean towards Taiwan, China, Singapore and seldom India.