Conexant to hire 500 in India

Conexant, a leading semiconductor maker for broadband communication systems, will increase its workforce in India to 500 from 95 at present.

This is part of its strategy to increasingly use India as a strategic development location after the company's proposed merger with GlobespanVirata.

"The Indian centre would undertake research and development in next generation products that the company is planning. We will increase the head count in the next 18 to 24 months," Vivek Bansal, president (India), said.

The company is actively pursuing acquisition of Indian companies in the very large system integration (VLSI) and communications chips development space.

"We are talking to various companies in India. We want to buy a small firm," he said. Bansal did not disclose specific details on the size or time-frame for this.

Conexant and GlobespanVirata, another US-based company in the business of semi-conductors, have signed a definitive agreement for a strategic merger which will create a global leader in semiconductor solutions with a combined market cap of $2.8 billion.

The transaction is expected to be completed in the first quarter of the calendar year 2004. The Noida centre of GlobespanVirata is also expected to undertake R&D of Conexant once the merger gets approved by the US regulatory authorities, Bansal said. Conexant does not have an R&D centre in India.

"By the end of 2003, GlobespanVirata plans to hire up to 100 professionals. It is currently hiring 25-30 professionals per quarter," Bansal said.

"By 2005, we aim to have complete product development capabilities at the Indian R&D centre," he added.

The combined entity of Conexant and Globespan will have an annual revenue run-rate of $1.2 billion and employ about 2400 people globally, he said.