Travelling On The Silicon Road

The microelectronics industry owes much to Moore’s Law – the number of transistors on a chip double every 2 years. It’s a principle which has been solid and consistent for the last 3 decades.

In an article posted by Bill Roberts in Electronic Business, Satoru Ito, CEO of Renesas Technology says. “Because of Moore’s Law, the industry has had a common road map for technological innovation. This allows partnerships and planning for investment.”

It’s an economic barometer with geometric scaling transforming to economic scaling.

Moore’s Law has led to partnership. For no single entity, no matter how deep it’s pockets are and how well entrenched it is with brain power, can work out on it’s own the complexities in the microelectronics ecosystem paved by this law.

It has led to specialization. Semiconductor equipment materials, foundries, EDA, Contract manufacturing, IPs, yield management processes – it has spawned them all. It has spurred entrepreneurial culture without which technology’s potential could not have been realized. And with specialization and innovation not recognizing any geographical boundaries, it has further led to globalization. Biz interests make you go where there is infrastructure, cost saving, brain power, innovation – strategy reason. Moore’s law has sustained because it’s driven by pure economics. Geometric scaling is a prelude to diminishing the cost.

And it has also led to the omnipresent question - after Moore’s Law, what ???

It’s heartening to note Indian government’s proactive stance in putting India’s footprint on the hardware arena too. Several multinationals have a design/R&D setup in India. While most initially came for the comparatively cheap manpower, they’ve stayed put for the brain power and are now investing for innovation. Several local services and product companies too have sprung up. But what has been lacking is an efficient semiconductor manufacturing base i.e. fabs & testing entities. Developing and sustaining them is a formidable task as it’s an extremely capital (& commitment) intensive zone.

Taiwan’s ITRI is a good example to follow in guiding the technological and economic growth of the country. ITRI lists establishing new High tech industry, upgrading traditional industries, leading the drive for sustainable growth and developing highly skilled human resources under their industrial impact. It has played a vital role in turning this island state into a semiconductor hub housing world’s top two foundries and boasting of highly skilled designers.