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China Fabless: VeriSilicon touts shift to design lite

Junko Yoshida

9/4/2012 5:50 PM EDT

Nurturing
Wayne Dai was also a professor of computer engineering at the University of California at Santa Cruz, so nurturing young engineers comes naturally. “Chinese engineers may be green,” Dai said, “but given the best design flows and tools, their energy compensates for their inexperience.”

VeriSilicon's Shanghai Office

Of a total of 380 people at VeriSilcon, 250 of them are now based in Shanghai.

More than 60 percent of VeriSilicon's Chinese engineers have an MS degree or above. They’re armed with an average of seven years of working experience. The majority graduated from one of China’s top 10 universities. To maintain diversity in its workplace, Dai said VeriSilicon’s engineers come from throughout China. “Less than 20 percent of our mainland employees are originally from Shanghai,” Dai explained.

Break Room
No, this is not in Silicon Valley. It's VeriSilicon’s sun-filled break room in Shanghai..

VeriSilicon’s customer list is also diversified, including top chip companies from Silicon Valley, Asia and Europe along with system OEMs with global brands and startups in China and elsewhere. Its notable designs include: Microsoft Kinect 3-D video sensing device (based on the algorithm developed by Israeli company PrimeSense); MEMS 3-axis accelerometer sensor used by Bosch Sensortec; DTV panel processor SoC for a Japanese flat panel TV company; touch screen SoC for a Taiwan-based supplier; an Ethernet switch for a Chinese customer; and an apps processor SoC for a Tier One U.S. fabless company.

Dai stressed that VeriSilicon is neither “just an IP provider” nor “just labor for hire” company. He takes pride in its ability to provide a “turnkey custom solution service” by using a customer’s spec.

The best example is a 3-D vision processor implemented by using the algorithm and architecture developed using PrimeSense and VeriSilicon IP, including ZSP, 16-b A/D, PLL, LDO and RAM blocks.

PrimeSense’ 3-D video sensing device drives Microsoft Kinect, X-box 360 game console. VeriSilicon also provided PrimeSense with logistical services ranging from packaging to testing and IC manufacturing.

“A new-generation of fabless companies would need to be design lite,” Dai asserted. Case in point is Kinect. Microsoft's projected sales goal was 5 million units, but 8 million units were sold in just 60 days. VeriSilicon worked with SMIC and re-assigned 50 VeriSilicon employees to work in supply chain management to quickly ramp up the sensor chip supply, said Dai. The outcome was a fabless chip company that started with only $9 million. Then VeriSilicon pitched in to help Microsoft meet unexpected consumer demand for Kinect.


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junko.yoshida

9/5/2012 12:04 AM EDT

Do you agree that "Design Lite" is a way to go for your project? If so, why?

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docdivakar

9/6/2012 12:31 PM EDT

Junko, much of what VeriSilicon is offering is also done by many Indian design services companies... but with one major difference -foundry liaisons where VeriSilicon has a clear advantage of being in China. This would not have figured prominently if the Indian government was not dilly-dallying about tax breaks for semi fab investments (that has been going on for five years now!)... but that is another story! Perhaps Peter Clarke can chime in?

MP Divakar

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AnySilicon

9/5/2012 1:32 AM EDT

The concept of Design-lite services exist for many years and used by the the major companies in the US.

One vendor that explains this model in a nice video is OpenSilicon CEO: http://www.youtube.com/watch?v=aEDZV_yoAFg

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junko.yoshida

9/7/2012 7:39 PM EDT

Thanks for posting the video link, AnySilicon. Naveed, OpenSilicon CEO, speaks very concisely and clearly of the essence of design lite concept. Very well done.

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casual3

9/5/2012 3:01 AM EDT

Design-lite can be afforded only by tier-1 system companies, this is due to the fact that Taiwan's Faraday marks up the IC turnkey cost by 60% (for over 40% gross margin), thus enabling companies like VeriSilicon to grab some market share.

For fast evolving markets like tablet, such design-lite scheme does not work. This can be seen from China's top 3 tablet AP vendors: Allwinner, Rockchip and AMLogic. Allwinner goes from almost zero to close to 50% market share in China in a year because it designs most of its IPs in-house and has a much better turn-key solution than competitors. If you outsource like Rockchip used to be, you lose the competitiveness and market share.

Still, design-lite is good for niche SoC markets where incumbents enjoy 90% gross margin (like certain video/image multimedia SoC).

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sprite0022

9/5/2012 9:04 PM EDT

this guy's sister Weili is quite a hoax, after some research...

it' s hard to tell how much she depend on her husband CEO for success but forget to mention the CEO husband's credit isn't nice.

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junko.yoshida

9/5/2012 9:09 PM EDT

Hi, Sprite0022. We appreciate your posting comments, but we do not share your view about Weili Dai. Weili, together with Sehat Sutardja, CEO of Marvell, have built Marvell. They are a genuine team. There's a story on IEEE Spectrum that details their journey:

http://spectrum.ieee.org/semiconductors/design/sehat-sutardja-an-engineering-marvell/0

Hope you will have a chance to read it and change your opinion.

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ippisl

9/6/2012 9:07 AM EDT

The story mostly details the husband contribution(which seems major and quite interesting) and says little about the wife contribution to marvell(mainly marketing).

And we get the impression that marvell's success is mostly due to engineering(maybe because it's spectrum - a newspaper for engineers).

Reading a bit more about dei, i don't get some impression that she's a marketing wizard.

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docdivakar

9/6/2012 12:22 PM EDT

Junko, ditto! It seems like @sprite0022 has an axe to grind! Perhaps one should remind here that IEEE doesn't associate with hoaxes!:

http://www.eetimes.com/electronics-news/4395301/Lofgren-hails-Silicon-Valley-patent-office

Marvell as a hitech company is quite an accomplishment in the Silicon Valley. There are mixed reviews about work environment in the company. But its accomplishments would not have been possible without motivated employees contributing!

MP Divakar

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JAK620

9/6/2012 11:45 AM EDT

Regarding the photo of the break room, I agree that it looks good on picture. But I highly suspect its utilization. The difference between a break room in the Silicon Valley and that of VeriSilicon is that VeriSilicon's break room is empty.
Also if you look at the clock on the wall, it is showing a -2 hour time difference between Shanghai and Taipei, and a +1 hour time difference between Shanghai and Tokyo. It is totally wrong. If you have been to the area, it is common sense that Taipei and Shanghai are in the same time zone while Tokyo is one hour ahead. Not that this matters but cannot help to notice this fail.. LOL

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sprite0022

9/6/2012 8:23 PM EDT

ok, to be fair Weili is somewhere between HTC's cher wang and melinda Gates.

about exactly how much a co-founder she is will remain a mystery... for us.
her husband knows .. everything, but I bet he won't mind if she lies or exaggerates somewhere.

to prove her skill , she better head up a business on her own and show a clean picture to other ppl. but she might never do it since there is tons of excuses...

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sprite0022

9/6/2012 9:16 PM EDT

it's common sense that close relatives should not work in the same dept etc. If they do it's legitimate for people to doubt their credentials.

maybe only someone naive like Junko will believe everything from their mouths.

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