'We need product firms, not just services delivery resources'

As a partner in India's semiconductor mission, California-based Cadence Design Systems has played an important role in the country's tryst with semiconductors. Its managing director for India, and corporate vice-president, International Headquarters, Jaswinder Ahuja, who has been at the helm here since 1996, now has a bird's eye view. He has seen India's transition. In a video interview with Surajeet Das Gupta, Ahuja sheds light on the challenges and opportunities in India in this space. Edited excerpts:

- Jaswinder Ahuja

While the manufacturing side of semiconductor has taken off, the design-led incentive scheme (DLI) faces many challenges. What is your assessment on the progress?

We have seen a great beginning in the manufacturing side, as the new plants being built are pulling in an entire ecosystem to support them, from equipment to chemicals and gases etc. In DLI, it's a chicken and egg situation, and its progress is not in line with the expectations. There are companies with intent to work in this space but they find the incentives inadequate or there are strings attached to it.

As you talk to many of the prospective companies, are there any other challenges which need to be tackled under the DLI programme?

For every project, the government—under DLI—is offering ₹15 crore. It is too little, almost inconsequential. If you look at the total project cost like manpower, tools and cost of buying some IP and building a prototype, when you add up, it is too little. For a non-complex design, the subsidy of 50 per cent should be around ₹100 crore.

Are there any other issues?