Magma Design to up R&D output from India

US-based Magma Design Automation, which provides software for electronic design automation (EDA) tools in the semiconductor sector, plans to increase its research and development output from India.

It has three centres in India "" Bangalore, Mumbai and Delhi ""which account for 25 per cent of the company's total R&D workforce.

Its other R&D centres are located in Netherlands, China and the US. "At present, the US happens to the largest R&D centre for the company while India is close behind. We expect our Indian operations to increase contribution in evolving global products in the coming days," Magma Design Chairman and CEO Rajeev Madhavan said.

Of the 420 R&D staff that the company employs, 170 are based out of India. "The Indian operations are critical to the company's overall growth. It has taken part in developing many significant products for the company. All the R&D centres work on a collaborative basis," he added.

The company intends to increase its total staff strength, including sales and support, to 250 by the end of the current fiscal in India.

The $178 million company, whose customers include Broadcom, Infineon, NEC Electronics, Samsung, Texas Instruments and Toshiba, derives 60 per cent of its revenue from the US market.

While Japan and Asia account for 15 per cent of the revenue generated, the balance is contributed by Europe. The company is looking at Asia for growth.

"The consumer electronic giants in South Korea are doing very well. The Japanese brands are on a come back.

China is also emerging as a crucial market. In India, the MNCs have a large presence when compared to the domestic brands," Madhavan pointed out.

The company expects to close the year at $211 million with demand for software for EDA tools on the rise.