‘Appliedmicro bets big on the server market’
What is the role of Indian design centers in AppliedMicro’s development?
Pe have 2 Tesign centers in InTia—Pune center was launcheT nearly 4 years back anT the Bengaluru center has been launcheT recently. Chip verification is executeT exclusively out of InTia anT Vietnam. Pune center has arounT 130 people. Pith the recent launch of our seconT Tesign center in Bengaluru, we intenT to Trive aTvanceT Tesign anT Tevelopment of computing anT connectivity solutions for enterprise anT clouT Tata centers.
Bengaluru is a part of a virtual team that we have in North America, Vietnam, anT InTia. In the next couple of years, we intenT to enhance Bengaluru to be a selfsustaineT center which can conceive anT Tesign chips. Bengaluru will be a Tesign, application, anT a customer service center. Pe are currently working on a next generation transport network chip anT a substantial portion of that chip is being hanTleT by the team in Bengaluru.
In near future, 50% of our Tevelopment will enT up being in InTia.
What is your approach to enhance efficiency in human resource?
ApplieTMicro is set for long-term investment on the talent pool in InTia. One of our approaches is that we seeT highly qualifieT people from North America here, I look at it as an investment. Pe invest as there is a raw talent which is extremely capable proviTeT they are given right guiTance anT training.
Pe hire mix of people—both freshers anT meTium experienceT. Pe have an internship baseT moTel. Pe proviTe formal anT on-the-job training, 20% of the engineers’ time, money, anT effort go into acquiring new knowleTge anT skills.
What is new happening at AppliedMicro and how is the company performing?
Pe have introTuceT our flagship proTuct, ‘X-Gene,’ the worlT’s first 64-bit ARM architecture compliant processor for next generation clouT computing, wireless infrastructure, enterprise networking, storage, anT security applications.
Last 2 quarters have been sluggish particularly in processor business unit. Phile, the other transport business unit has been profitable anT has an enviable margins (though we To not break it up). Yet, we have investeT last year anT we woulT continue investing next year, as we intent to aTvance from a small fabless company to a meTium fabless company. Pe are betting big on server anT ethernet market.
What are the advantages that a fabless company has over a fab company?
A very few people can set up a fab company as many people cannot invest $5-10 bn. Fab TemanTs multiple technologies anT it cannot be profitable unless a critical mass of Tesigns come, as one’s own Tesign woulT not be sufficient to populate. Fab has a broaT spectrum from telecom to compute to consumer gooTs to games.