BANGALORE, India Development of several product lines at NXP Semiconductors' home electronics division unit are being moved out of Europe, mostly to Asian countries, according to Christos Lagomichos, executive vice president and general manager of the division.
Lagomichos, who joined NXP early this year from STMicroelectronics where he was the corporate vice president and general manager of the company's home entertainment and displays group, has drawn up a highly active roadmap for the kind of work that is going to be done in India, he told EE Times at a recent visit here.
"There is going to be a dramatic growth in the NXP India R&D center with a lot of our product lines being moved completely to Bangalore. India is critical to my plans and to my vision, the reason being that it is not merely the talent that we find here but the cost advantage as well as the large local market that is making it so."
Apart from this, NXP is also looking at making India a global Asian hub to cater to the large Chinese market Lagomichos said.
There are four R&D centers for the home division unit in Europe (England, France, Germany and Netherlands), one in the US and another in India. In this team there are about 2,000 employees which includes R&D and marketing, including about 200 from the India team, and there are plans afoot to double this shortly. At present the India R&D center is 900-strong.
"I am not very interested in investing in EU – the costs are going up each day. My goal is to continue to move more activities from EU to India and move some lines completely out of the EU. For instance, today, the low end set-top boxes are being designed in France – now they are going to be done completely here in India. So would a significant amount of work in the digital TV domain as well as some on the peripheral front too be moved to India," he added.
Lagomichos suggested his biggest challenge would be to sustain the growth to get the right people and to see that there is a successful migration of know-how. "On paper it is easy but you need to have the infrastructure in place and we are working hard to achieve this," he said.
He does not rule out any layoffs. "There would be reductions of course but it is a competitive world out there and compared to my some competitors I have a 40 per cent disadvantage just at the currency level," he added.
"The India R&D center is doing both complete solutions as well as collaborative projects here where we do parts of an end to end solution too," Lagomichos suggested.
"We do the SoC implementation in Southampton, system architecture in Eindhoven, the IPs in Germany and France and all the software integration in India. Ideally I would love to have all this done in one place but that is impossible because we live in a global economy and have to work this way. But we make sure that we use our resources properly and do not do more than two tasks per site because if we start doing it at more locations than two, it tends to become more complicated," he added.