Mentor Graphics is to expand the scale and nature of its existing operations in India, where it has 3 development sites – in Bangalore, Hyderabad and Noida."Each of the three sites specializes in a particular activity. In Noida, for instance, we have the core expertise in the company for RTL compilation, emulation software and the auto generation of verification software while Hyderabad is the center for our automotive thrust and takes the lead in solutions for cabling, wire harnesses, the enterprise tools that automotive companies use," said Walden C. Rhines, chairman and CEO, Mentor Graphics.
“We are looking at expansion of our facilities in India but I cannot speak about it now. We can grow and will probably add new areas of competency as well,” he said during a recent visit to this country.
Mentor currently has 400 staff in India and the likely expansion of its facilities in this country, apart from increased recruitment, also means that the influence its Indian operations will have on its global footprint is slated to rise.
“The people in the U.S. take leads from design teams in India and so the teams here (already) have enormous influence,” he said.“It is also now much easier to get people in India than in 1985, when I was responsible for the Indian center of Texas Instruments,” Rhines said, adding that typically Mentor ‘s hiring in India was marked by a small percentage of experienced engineers, the preference being for fresh engineering graduates.
“Stock prices (of EDA companies) are admittedly very low right now. You can rationalize and buy EDA stocks in that they have tremendous cash generation. Either stock prices must rise to reflect this or you buy your stock back and that is what the big, listed EDA companies are doing,’ he said.
"Right now, the world is in an enormous period of enthusiasm for social networking and they are ignoring stocks such as Mentor, Cadence and Synopsys which are available at record lows….besides, the number of venture-funded, new EDA companies has decreased substantially," he said.“As for Mentor itself, it has enormous growth possibilities from the automotive industry and medical electronics sectors. My plan for the next year or so at Mentor is that we have the products and the markets to generate substantially more growth, so we have to pay more attention to profitability. More importantly, we have invested over long periods of time in embedded software, automotive and aerospace and now these companies are moving into a wave of deployment of newer applications and so we expect to sell more. Verification is another area of opportunity but we just do not have enough engineers to go and show our solutions to (would-be) customers,” Rhines added.