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EN 4012 :

Advanced
Electronics

Electronic Industry development


Strategy for Sri Lanka
M D Sudara 110558C
J G D A Thilakarathne 110575B
M M D Vishwajith 110604P
H M S Weerarathne 110612M
V S Wijesinghe 110641B

Development Strategies
of Other Countries

South Korea, Taiwan,


Vietnam, Israel

South Korea

Mobile phones, Television, Automobile

Started in 1960s

They allowed major electronics firms from industrialized


countries to establish their production bases for the postprocessing of integrated circuits in Korea.

Encouraged Inward FDI(foreign direct investment) and


technology transfer.

Changed their industrial policies to export-led


industrialization.

Promoted private business groups to promote


technological developments.
Joint public-private sector R&D projects.
A small number of large corporations emerged.
Government supported private sector in this area.

South Korea
Strengths:

Strong Innovation
Favorable industrial policy
Well-educated workforce
Government support
Cheap Labor

Threats :
Competitive costs and better quality

Taiwan

semiconductor, Monitors, Notebooks, Motherboards, Power


supplies, Scanners, Key boards, Network Cards
Also

started in 1960s.

They

allowed major electronics firms from industrialized countries to establish their production
bases for the post-processing of integrated circuits in Korea.

Encouraged
Changed

Inward FDI(foreign direct investment) and technology transfer.

their industrial policies to export-led industrialization.

Strengthening

public infrastructure for electronic industries.

Result : Many small companies invested


Established

Science Parks (Hsinchu Science Based Industrialized Park)

Established

public R & D institutes through the special economic zone.

Invested

on domestic electronics industry.

Firms

were provided preferential Treatment (Such as Financial support from China Development
Corporation (CDC))

Result:

United Microelectronics Corp. has grown to be a worldwide manufacturer.


Domestic appliance manufacturers have fully participated in the electronic market.
Taiwan Semiconductor manufacturing Company, established in 1987 specializes on foundry services
Home to the worlds largest contract manufacturing firms

Taiwan

semiconductor, Monitors, Notebooks, Motherboards, Power


supplies, Scanners, Key boards, Network Cards

Strengths:
Educated workforce
Low tax burden
Infrastructure
Strong ties with western economies
Taiwan free trade zone
Government support

Threats:
Intellectual property Protection
No natural resources

Vietnam

transformers, printers, computer and mobile telephone


parts, circuit boards

Develop electronics industry with FDI.

After ten years, they realized the difficulties in receiving


the transfer of new technology from foreign countries and
very little benefit from doing outwork that relied on
advantages of labor intensity.

With long-term plans for improving local technology,


establishment of institutes, funds and Council for Science
and Technology, special financing schemes, and tax
incentive etc.

Vietnam focused on attracting FDI, as well as created the


most favorable environment for development of R&D and
technological transfer.

They all tried to enhance the quality of human resource.

Vietnam

transformers, printers, computer and mobile telephone


parts, circuit boards
Strengths:
Labor resource is plentiful
Most Vietnamese labor is clever and skillful
Labor cost is cheap
Policy system is fairly certain
The private sector has considerable potentials to develop
Weaknesses:
Technology is backward by lack of capital and weakness in predicable ability
development trend.
Capital is small
Vision strategy and management level are week
High-tech labor is insufficient because of the old educational system
Vietnamese labor's discipline and national spirit are low
Supporting industries are rather young
Without competitive pressure, infrastructure is poor and expensive
Unclear administrative procedures and bureaucracy are high

Israel

UAV, SSD, Computer, Automation (Robots), cell phone,


commercialized by Motorola, Miniature video camera capsules
Government

programs in R & D

Office of the Chief Scientists (OCS) of the Ministry of Industry and trade in Israel , Created OCS in 1968 which

controlled and monitored the Commercial R & D projects undertaken by private firms
Investing

Inventions
Cell Phone , Commercialized by Motorola
Compression techniques
VOIP technology
Intel wireless computer chips
Miniaturized video camera capsules to examine internal organs

Patents
Developed

science based export oriented industries

A variety of programs industrial technology R&D/ university-industry partnerships/


commercialization of academic research
Strong link between R&D investment and number of patents Israel passed many industrialized
countries in number of patents per capita
Results:
Stands as one of the innovating economies

India
Space and Defense Electronics , Consumer Electronics, TVs , Radio ,
Telecom Products ,Industrial Electronics , Asic Design , IP core

Rapid Customer Response maintaining a customer


focused forward looking business strategy.

Adherence to quality -Enterprises can gain competitive


advantage only through offering unique products and services.

Effective E-wastes management- Designers were


concerned on reducing the volume of E-waste and ensured
that products are built for re-use , repair and upgradeability.

Establishing National Electronics Mission -a nodal


agency for the electronics industry under the Department of
Information Technology, The main functions of the nodal
agency would be to attract investments into India, promotion
of Brand India, facilitating business in India, managing R&D
fund and manufacturing of value added products.

India Strategies Ctd

Thrust to Semiconductor Industry - India has an edge in


semiconductor design, embedded systems and has the potential of
becoming an engineering design house for the world. The Indian
semiconductor industry is currently dominated by players engaged in
chip designing activities.

Research & Development The main intension was to reduce their


import dependencies from other countries.

Brand Building Initiatives- Marketers see a brand as an implied


promise with desired level of quality expected of from a product, which
will enable them to continue with future purchases of the same
product.

Developing Market Sustenance try to identify changing consumer


needs and industry standards so they get a competitive advantage.

India Strategies Ctd

Improved Standards and Testing Facilities .


Technology Development and Sourcing.
Skill and Human Resource Development.
Cluster Development.
Capturing the Rural Market.
More Support to Telecom Equipment Sector
Promotion of Intelligent Manufacturing.
Promoting
Repair/Reconditioning/Refurbishment of
Electronic Goods.
Simplification of customs procedures
Effective supply chain and logistics system

References

http://www.wtec.org/loyola/em/03_04.htm
http://www.abhinavjournal.com/images/Arts_&_
Education/Jun13/2.pdf
http://www.wtec.org/loyola/kei/welcome.htm
http://
www.cci.in/pdfs/surveys-reports/Electronics-Industry-in-In
dia.pdf
http://www.gtai.de/GTAI/Content/EN/Invest/_
SharedDocs/Downloads/GTAI/Info-sheets/Electronics/infosheet-electronic-manufacturing-services-in-germany-en.p
df
http://
ieeexplore.ieee.org/stamp/stamp.jsp?arnumber=526879
2
http://
www.thomaswhite.com/pdf/emerging-markets-spotlight-s

Suitable Strategies for


Sri Lanka

Providing tax exemptions and other financial


benefits to local manufacturers.
Promoting venture capital companies within the
country.
Using international and local trade shows to
promote local electronic products.
Introducing standards for quality control.
Research & Development.
Brand building initiatives.
Cluster development.
Promotion of Intelligent manufacturing

SWOT Analysis for Sri


Lanka

Strengths
Low

cost Skilled workers


Preferential access to major overseas
market

Weaknesses
High

Corporate tax rates


Low Capital
Lack of specific training and
technological capability
Lack of influence
No brand names
No established manufacturers
No vision Strategy
No proper management
Less supportive government

Opportunities
Development

of specialized areas
such as biomedical equipment, IP
cores

Threats
Further

growth of other countries like

China
Intellectual property violations
Cheap products from other countries
Well established companies in other
countries
Brain Drain

Identification of
products suitable for
Sri Lanka

Electronic Manufacturing Products


Several electronic manufacturing categories are listed below with examples

Components

and devices
Computer processors, Integrated circuits, Transistors, Diodes,
Resistors, Coils, Capacitors, Transformers, Lead frames, PCBs

Computer related products


PCs, HDD, CD ROM, Mother Boards

Automotive Electronics
GPS systems, Hybrid cars, reverse sensors, Security systems

Consumer Electronics
Flat panel TV, HD TV, Digital Cameras, Cellular phones, Iron,
Telephones, Home security-systems

Electronic Manufacturing
Products

Educational and Testing


Oscilloscopes, Signal Generators, Power Supplies

Medical Instrumentation
MRI, ECG, Pulse Oxymeters, Glucose meters

Industrial Electronics
Optical recognition, Green Electronics, Automation, Robots

Agricultural Electronics
Rice Sorting machines, PH meters

Office Equipment
Scanners, Printers, Photocopy Machines

ASIC Design: Introduction

The global semiconductor industry is dominated


by USA, South Korea, Japan, Taiwan, Singapore,
and European Union.
The U.S. industry faces challenges to development
by some forms of government regulation. The U.S.
government regulates exports and certain uses of
some types of semiconductors due to their
potential dual use in military applications. Based
on a KPMG report it was a $304 billion market in
2010.

ASIC Design: Why Sri Lanka is suitable

Technical

knowledge is available in Sri

Lanka
Today a lot of capable Engineers, scientists
are produced in Sri Lanka. But because of
lack of opportunities in Sri Lanka these
resources tend to serve overseas
companies. But if we can introduce our
own companies and get these resources for
the country we could make good revenue

ASIC Design: Why Sri Lanka


is suitable
Starting

capital is very less other


than the EDA tools.

Unlike other industries one of the main


advantages is that the starting capital
is very less. Starting capital is one of
the main barriers for the other
industries trying to start in Sri Lanka

ASIC Design: Why Sri Lanka


is suitable
Demand

for IP cores are increasing


day by day.

One of the main hot fields in


semiconductor industry is designing IP
cores. And the demand is going up
day by day. Currently India has taken
the frontier in designing IP cores.

ASIC Design: Why Sri Lanka


is suitable
New

technologies are presented and they


open up whole new areas to work on.

New technologies are introduced in every


field in electronics. (Examples: 5G, HEVC
etc.) And a lot of hot topics are introduced to
the semiconductor industry because of this.
Like SDn
SDr
SDx

ASIC Design: Why Sri Lanka


is suitable
We

should

Develop lot of IT people like India


Develop facilities like internet ,

communication , and ease of access to


knowledge
Exploit the fact that we have most
cheapest engineers in the world.

Agricultural Electronics
Machineries for sorting and packaging
Rice cultivation is the main sort of the agriculture industry in Sri Lanka.
Hence there are large scale, middle scale and small scale rice mills. There,
sorting of rice and packaging is an increasing necessity.
There

are developed machineries for sorting and packaging which are


manufactured in China and India. But these machines cost a lot. Hence only
large scale mill owners can afford such high prices to buy those
machineries. Hence the middle and small scale mill owners cannot afford
such high prices.

Sri

Lanka has the mechanical and electronic knowledge to design and


fabricate the machineries

There

is good customer base within and outside the country for these types
of machineries

Efficiency

and effectiveness can be increased by such machineries

pH Meter

Testing pH value is important in Agriculture

It has a strong influence on how well your crops will grow. (The balance of Acid
forming nutrients and Alkaline forming nutrients will influence root development, microbial activity, fungi, symbiotic nitrogen

Sri Lanka is an agricultural country.


fixation by legumes and the availability of nutrients)

Large scale cultivations


Domestic cultivations and gardening.

Applying scientific knowledge in agriculture will increase harvest and


bring profits.

Hence, pH meter is a marketable product in Sri Lanka which has an


economic value.

pH Meter
Is it possible to develop a pH meter in Sri Lanka

We have resources to research on this product

Universities, Resource persons, Engineers

Government has special attention in developing agriculture.


Government support

Stable Market
Sri Lanka is an agricultural country.

Competition

in the Local Market


Imported products available in the local market from brands like
Hanna, Eutech.

Medical Electronics:
Strengths
Medical

electronic equipment belongs to a very niche market. A niche market is


the subset of the market on which a specific product is focused. The market
niche defines the product features aimed at satisfying specific market needs, as
well as the price range, production quality and the demographics that is
intended to impact.

Unlike

the consumer electronics barrier to enter to this market is very high in


this field. Niche market is highly specialized, and aiming to survive among the
competition from numerous super companies. Although barriers sound like a
weakness in this case it gives us an added advantage. Since medical
equipments needs extensive testing, highly regulated, Very high expected
quality, most of the consumer electronic manufacturing organizations dont
focus in this area.

Various

sources expect the Medical Electronics industry to reach around USD 2+


Billion in 2015 growing at a 17% for the last five years from a size of USD 850+
Million in 2009.Because of the huge market growth , there is an ability to enter
the market or penetrate the existing market.

Medical Electronics:
Weaknesses
1.

Manufacturing incentives

The medical electronics industry is largely dependent on imports. Most hi -tech Innovative
products and technologies originate from a well-developed ecosystem and innovation cycle,
which needs to be developed in Sri Lanka. Incentives must be given to achieve an
indigenous manufacturing ecosystem which over a period of time will reduce our
dependence.

2. Human Resources in Healthcare


Technicians are critical for proper use and operation of medical electronics equipment.

3. Adoption
Major cities drive the demand for medical electronic devices however it is significantly lower
for smaller cities/town/rural areas.

4. Affordability
This challenge can be met by a joint effort from all stakeholders towards innovative
development of solutions that fit well into the economic conditions varying from urban to
rural Sri Lanka.

Power Supplies, Signal


Generators
In

Sri Lanka, the requirement of these is mostly fulfilled by


importing the products (American products like Tektronix and
Agilent). Even though the targeted market is low in Sri Lanka,
the importing of these products can be controlled. If these
products can be made with high accuracy and reliability,
exporting of these products can be considered.

Strengths:

Skilled low cost labors, Sri Lankan market can be

targeted
Weaknesses:

Initial capital for a startup

Threats:

Branded products with special features will be a


threat when exporting

Opportunities:

Local market can be targeted

Stakeholder Interviews
Stakeholders of IP core Development: Vendors of
tools, students, existing companies, professionals in
the field, University
Millennium

IT

Testability
Functional Verification
Functional Coverage
Design Coverage
Reliability
Get only the most generic ip-cores like pci , axi ipcores from the
vendors.
Develop custom ip-cores in-house.

Stakeholder Interviews
Atrenta
develops IP core development tools (Spyglass

and Gensys)
Synopsys acquired Atrenta
a possibility of establishing IP core
development branches in Sri Lanka
Atrenta's second largest R & D branch is in
Sri Lanka (1st India)
an indirect connection with global IP core
industry

Stakeholder Interviews
Spyglass - checks the RTL and gives the designers an
insight about the design at an early stage. (reduce
time-to-market)
GenSys - an RTL restructuring tool (reduces human
effort at restructuring)
Main clients: Apple, Intel, HITACHI, Canon, LG,
Panasonic, Motorola, Siemens etc.
How can Atrenta help?
gives free product training for new users
free customer support for all the users
customers can request features for their own

Proposed strategies
Developing University based R&D institutes
A connected program among universities
Commercialize the research with the help of

Industry
Getting training programs from vendors like
MENTOR GRAPHICS, SYNOPSYS
A continuation of FYP projects
Encourage students to get familiar with EDA
tools
Government support to increase the number
of licensed EDA tools.

Proposed Strategies
Time to market
When it comes to time to market , the

problem is the requirements of the


current market is unknown. So the
company have to analyze the current
trends and predict new requirements.
Most of the time company create a new
requirement by themselves.