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Article

Title: Japan taps into 'glocalization'

Author: Hara, Yoshiko Article Type: Product Analysis
Source: Electronic Engineering Times, n1428 p18(2) Publication Date: Jun 19, 2006
  ISSN: 0192-1541
URL of Publication: http://www.eet.com

Semiconductor chipmakers in Japan are targeting markets in India as they take on a strategy similar to outsourcing by Western companies. Instead of outsourcing, Japanese firms are adopting an insourcing business model. In the past, the market is dominated by Western chipmakers such as STMicroelectronics, Texas Instruments, and Intel, but now, Japanese semicon companies are increasingly becoming active in India. Among them as Elpisa Memory, NEC Electronics and Kawasaki Microelectronics. India is an important market in Japans so-called glocalization efforts which take into consideration the regional factors in its overall business strategy. India is especially important in Japans goal of moving faster and becoming more flexible in terms of chip design. Japan is particularly slow in DRAM design as it becomes more difficult to find engineers skilled in DRAM production. Japanese chipmaker Elpida is one of the companies expanding to India for DRAM production. The company is partnering with a Singaporean company, FTD Technology, which is also taking advantage of the rich human resources in India. Meanwhile, NEC Electronics is working with two India-based firms to enhance its customer service and sales efforts. The Indian companies will work on NECs Instant Silicon Solution Platform (ISSP) structured ASICs.

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