Question about Semiconductor Industry in Pakistan.
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Zaka U. Bhatti
03/10/1991
to
Fellow Netters:
Does anybody know about the Semiconductor Industry in Pakistan?
For example names of companies, their products and their research
goals. This includes companies that do IC level circuit design, CAD
development, component level circuit design or IC fabrication.
Please respond to me by electronic mail. I will compile the
responses and post it on this group at a later date.
Zaka-=-
Tahir Ghani
03/10/1991
to
In article <
1991Oct3.1...@ee.eng.ohio-state.edu>
za...@ee.eng.ohio-state.edu (Zaka U. Bhatti) writes:
>
> Fellow Netters:
>
> Does anybody know about the Semiconductor Industry in Pakistan?
>For example names of companies, their products and their research
>goals. This includes companies that do IC level circuit design, CAD
>development, component level circuit design or IC fabrication.
>
>Zaka-=-
I know of a company ( back in 1985 ) which use to do back end
processing ( mainly packaging ) of IC's. I have forgotten the name
but it was located in Lahore. I am not sure whether it is presently
in operation or not. As for the companies doing IC level circuit
design, CAD develpoment or IC fabrication, there are none, zilch,
zero!!
Most US Semiconductor companies prefer to do back end IC processing
( which inculdes testing and packaging of IC's ) in Singapore,
Malasyia, Thialand, Phillipenes and other east Asian countries because
the process is labour intensive. Pakistan should also be attractive
in this regard, but it needs to be politically stable and also needs
foresight on the part of our leadership.
The institutes such as NIE ( National Institute of Electronics ) and
Silicon Research Institute, which have been set up by the federal govt.
for the promotion of electronics/computers, provide nothing more than
lip service. The chairman of one of these institutes happen to visit
Stanford a few years back and indicated that he was more interested
in the GaAs technology rather than Silicon because of his perception
about GaAs being "the state of art", without having any understanding
of the real issues. I would love to hear the views of Pakistani EEs
who have worked at places such as NIE, SUPARCO etc.
Regards,
Tahir
SAFWAN SHAH
04/10/1991
to
In article <
1991Oct3.2...@EE.Stanford.EDU>
gh...@EE.Stanford.EDU (Tahir Ghani) writes:
>In article <
1991Oct3.1...@ee.eng.ohio-state.edu>
za...@ee.eng.ohio-state.edu (Zaka U. Bhatti) writes:
>>
>> Does anybody know about the Semiconductor Industry in Pakistan?
***some stuff deleted*** >>Zaka-=-
>
>I know of a company ( back in 1985 ) which use to do back end
>processing ( mainly packaging ) of IC's. I have forgotten the name
>but it was located in Lahore. I am not sure whether it is presently
>in operation or not. As for the companies doing IC level circuit
>design, CAD develpoment or IC fabrication, there are none, zilch,
>zero!!
***some stuff deleted***
> Tahir
Why there are none, zilch, zero?
This article attempts to generate a discussion on Mr Tahir's statement. It
may lead to some insight into the circumstances which incapacitate a "HI-TECH"
industy in Pakistan. Though he is specifically talking of CAD and IC
development I have slightly augmented the base to include all products which
are state-of-the-art and could help propel Pakistan into the 'Developed'
nation category. Please there is no room for wars and flames!
The name of the company which "packaged" IC's was Micro Electronics
Technology (MET) Inc. It operated from the premises of Micro Electronics
International (Pvt.) Ltd. It was actually a joint venture between a
company based in Fort Lauderdale, Florida and MEI. In 79-80 the
regime of President Zia encouraged a Pakistani in the US to return
to Pakistan and set up a wafer fab plant, since the infrastructure for
such an industry did not exist it was planned that an existing plant set
up by Philips under the name ELMAC would be modernised for this purpose.
At that time ELMAC was not operational (aftermath of the Islamic Bomb
controversy), Philips had come under a lot of pressure for supporting
clandestine development of hi-tech against the COCOM and GATT treaties
in Pakistan and they had scuttled their operations after an aggravated
labour strike. Prior to shut down ELMAC was manufacturing diodes and
transistors and was also in a position to package IC's. It may be
mentioned here that it was because of ELMAC that the government had levied
custom duties of 80 to 100 % on electronic components.
In 1980 MET and MEI became operational with the intention to set up a
Wafer Fab plant, several US companies including the first few ASIC
companies were participants in this venture. Unfortunately at that
very stage the US embassy in Islamabad was attacked by angry crowds and
the US government ordered stoppage of equipment ($ 40 M worth) to
Islamabad. The participating US companies were discouraged and the project
was in jeopardy. Ironically, within a few months the same companies started
construction of a wafer fab plant in China. With the "so called" foreign
help out of the deal MET began to import wafers from US companies in
Phillipines, Singapore, Taiwan etc. 64K RAMS, 74XX series, and many other
simple chips were packaged. The capacity of the plant was 1 Million chips
per week per shift. Obviously this capacity could not be reached because
the investment to buy the required wafers was not there and also the
chip market was in a slump. Tragically the US companies which were selling
wafers were also not doing well and none of the Japanese companies were
ready to sell wafers when they could make more profits by selling chips
themselves. MET dumped over 15 million RAM chips in US through HK traders
under MSJ and MET markings and consequently the US banned export of
several important constituents of the packaging proccess to Pakistan,
particularly a gas which is used to seal the epoxy over the bonded wafers.
So much for this tale of sorrow. MET managed to live by procuring
wafers from the Chinese and packaging some chips for local (inhouse)
needs. MEI the sister company went into the manufacture of HF/VHF
radio equipment with great success. The initial plans and dreams to
make semi custom chips were basically dead for the time being.
In 1985-86 MET/MEI launched another project with KDD (Kokusai Denshi Denwa)
the Japanese Telephone Co. and Harris semiconductor to manufacture
custom IC's for the manufacture of cellular phones in Pakistan. The
plan was to train Pakistani engineers to design gate arrays and with
the support of a Japanese bank the project was launched. Calma, Daisy
and Iris workstations were procured, automatic production lines and SMT
(surface mount tech.) equipment was set up. This time the problem
arose when the State Bank of Pakistan refused to counter guarantee the
Japanese loan (6%) and local banks declined all support on the premise
that they could not use electronic equipment as collateral. Their
reasoning was that if this had been a textile or cement factory the
banks would have no problem because that equipment can be consumed
locally. MET/MEI had already sunk a large sum in the project and the
foreign partners withdrew. The equipment is still in Pakistan and
wasting away. The only remaining hope was that the new digital exchange
would be made in Pakistan and local companies would have a significant
role in its development. This hope was first shattered by PM Junejo when
he proudly announced that this exchange would be built by SIEMENS (FRG)
(it was later cancelled), and then recently the highly qualified
communication minister of Pakistan (Mr Murtaza Jatoi) granted the
project to Ericsson and some other foreign company. The modules will
be transferred to Pakistan semi knocked down and the local role
will be the construction of the premises and large commissions.
Anyway, this was just a fragment of the whole picture based on one
companies experience. There are those who have been successful, but
only if they managed to beat the system. It is still extremely doubtful
if a medium/or large scale hi-tech establishment can make ends meet in
Pakistan. Unless one trades in foreign names (Pagers traded by Digital
Comm.: Cellular Phones by Instaphone and another co.), it is very
difficult to survive, because then you are compelled to
not inflate the project cost as eventual manufacture would reflect that
expense. While simple trading allows you to generate the funds required
to give the ministers their kicbacks.
The above stated tale of woe does not imply hopelesness. It is a
neccessary stage and probably every nation has to go through it before
someone comes and breaks the various barriers. I base my arguments on
two things.
1) Assembly and progressive manufacture is far more essential
for progress then simple trading.
2) Govt. controlled large scale projects, like the
Digital Exchange can provide the impetus to encourage
the Dawoods, Habibs and others to go into manufacture of
basic electronic components (Res, Cap, Diodes, Tr,
Switches etc.). Inexperienced expatriates and local
TV manufacturers and product assemblers cannot do both
make products and also finance the downstream industry.
Until banks and bureaucrats develop a concept 'electronics' this tale
of woe will repeat like the proverbial 'bad penny'
Regards,
Safwan Shah
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