Dreamchip Electronics Announces Plans to Start Multiple Design Centers
October 24, 2012; Chennai, India -- For Electronic Manufacturing Companies (EMCs) in India, the financial year 2011-2012 was the year of pain and learning. The EMC industry is heavily dependent on imports, with the value of imported components in the finished product ranging from 40 to over 70% of the total cost of a product. A quick calculation will show that, the weak rupee, combined with the large volatility in the value of rupee has caused the cost of manufacturing to go up by between 7-15%. With prices continuously falling for most electronic products — this increase in cost, which is only specific to India (and other countries with weak currencies), has made the Indian EMCs even more uncompetitive in their own domestic markets.
Dreamchip Electronics Private Limited, a 2012 startup in the Electronic System Design and Fabless Semiconductor space has an innovative offering for EMCs. Dreamchip offers customized SoC design and manufacturing using cutting-edge system level design methodologies, using innovative design platforms like SANKHYA Teraptor.
Custom designed SoCs have the advantage of being better optimized thereby offering superior performance. These also lower electronic product manufacturing process costs by reducing the bill of materials.
In addition by transforming the design costs into Indian Rupees, even when outsourcing the chip manufacturing costs to fabs outside India, where the cost will be necessarily denominated in a convertible currency, the overall cost of the SoC can be lowered by as much as 40-50% !
Dreamchip in turn, offers a very unique offering to its clients, after an initial feasibility study, Dreamchip offers select customers SoCs at a flat 35% discount to the current cost of the bill-of-material that the SoC replaces.
Here is how this is explained by Gopi Bulusu, founding director at Dreamchip Electronics -- "imagine that you are importing a System-On-Chip in a virtual currency called Dreamchip Dollar, the Dreamchip Dollar would have a notional value of 65% of the US Dollar. The 35% savings would make manufacturing inherently more competitive for the Indian EMC". If you are an EMC, don't just rush to Dreamchip, not every one can benefit from this unique offering. Only companies that have a minimum volume of 250,000 units per year, and a total requirement above 1 million units over a 3-4 year term can immediately benefit. It may take upto 15-18 months for Dreamchip to create and ship fully tested SoCs in volumes.
However, if you only need 10,000 units a year, don't be disheartened — Dreamchip is offering a virtual shuttle service, where similar requirements from a cluster of companies are combined into a single custom SoC design and manufacturing order. Standard SoCs for a broad range of requirements are also part of the Dreamchip product roadmap and will be available in 16, 32 and 64 bit variants.
Dreamchip Electronics is planning to start 2-3 system design centers in India over the next 12 months.