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Starting a business: Standard Cell Library domain is better choice or Physical design

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pamm2020

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Hi Friends,

With a 5+ years of experience in the ASIC design, I have worked both in Frontend (SoC Integration, IP Design, Verification) and Backend (memory compilers, Standard Cell Library Design). Now I am thinking of starting own business in near future and wrt this i would like to hear from you guys following:
1> How do you see in future starting business in Standard Cell Libraries ?
To elaborate more, I see that people working in Physical Design (RTL to GDS2) and people working in Front end - will work as consultant for multiple companies. It is a good starting point to dive into self business. How do you see similar opportunities for engineer working in Standard Cell libraries?
2> Because of independent working option available (working as consultant) in Physical design (RTL to GDS2), I am planing to change my domain from Standard Cell Library design to "Physical Design". What is your view on this ?
3> Do you think to start a own business this is too early ? and I have to wait for few more years ?

Your comments are welcome!
 

Hello,

Its nice to see, that you have the guts to think about something, which is nearly immposible for others. well, your idea is not bad. but i would suggest you to kindly, re think about the options.

1) standard cell Libraries (options) : as far as i know, this area is something, which usually hap in product based who usually prefers/rely on in house staff. Or just think about it? Why one would come to you and buy your standard cell libraries? If you have an answer to this question and if you are convinced with it, then please go ahead.
2) Consultant: this option is something you can rely on- this has minimum, risk and more options to explore. I have seen lots of consultant working with top notch product companies. So this is a safest option. Provided if you have good contacts in the industry. I have seen contacts play a crucial role in getting the first break/project.
3) No, I dont think it is too early, to start a business, if you feel you have the knowledge and expertise then, i think you should go ahead with it.
 
Hi Vijay,

Thanks for your comments. I just want to know the job nature of the "Consultant". How Consultants are different from that of Contractors ? More specially in terms of money and other facilities.

Thanks.
 

Hi pamm,

Well, usually consultants get fixed price projects, whereas, contractors are billed on monthly basis. Well, as far as nature of work is concerned contractors work more closely with the Team Lead/Manager whereas, consultants hardly get any inputs from the Team Lead/Manager. As far as facilities are concerned if you working for a very good "Product based" company then they hardly do any compromise w.r.t to facilities and infrastructure. Also, for contractors there is not fixed term projects, they usually have an edge over consultants.


Cheers
 

Hi Vijay,

Thanks for your reply.
1> I didnt understand your last word " they usually have an edge over consultants".. Could you please elaborate on this?
2> Also I agree that consultants get fixed fee projects, but this means he will be paid less or more compared to "contractor" ?
3> What is the benefit if we work as consultant rather than contractor ? You dont think consultant's life will be bit risky compared to "contractors" and "full time employees" ? I am not understanding advantage of being consultant ?
Please dont mind in answering these questions.

Have a happy weekend

With Thanks







vijay.mani884 said:
Hi pamm,

Well, usually consultants get fixed price projects, whereas, contractors are billed on monthly basis. Well, as far as nature of work is concerned contractors work more closely with the Team Lead/Manager whereas, consultants hardly get any inputs from the Team Lead/Manager. As far as facilities are concerned if you working for a very good "Product based" company then they hardly do any compromise w.r.t to facilities and infrastructure. Also, for contractors there is not fixed term projects, they usually have an edge over consultants.


Cheers
Click to expand...
 

pamm2020 said:
Hi Vijay,

Thanks for your reply.
1> I didnt understand your last word " they usually have an edge over consultants".. Could you please elaborate on this?

Ans 1> edge over over consultants means, they are usually retained by the clients where as consultants are not usually retained by the clients unless they provide a cutting edge solution to them. They are being paid on the basis of the projects they get.. its good to start with actually.
2> Also I agree that consultants get fixed fee projects, but this means he will be paid less or more compared to "contractor" ?
Ans 2> well less or more i cant comment on that as it depends on the project and the work force which is being employed by the clients. Where as contractors, get billed on monthly basis, so cash flow is regular.
3> What is the benefit if we work as consultant rather than contractor ? You dont think consultant's life will be bit risky compared to "contractors" and "full time employees" ? I am not understanding advantage of being consultant ?
ans 3> Well, its very difficult to pin point advantages and disadvantages here, as both have their own pros and cons. i still feel that in long term business, it is always to put your guys to work as contractors rather than consultants.. This will help the engineers as well, as this may help in honing their skill sets as well. But for consultant most of the data is not being shared with them thus creating problems and the relationship as well..

I hope this will help you..
cheers.
Click to expand...
 

Hi Vijay, Thanks again for the reply.

With this discussion i see that there are more advantages for "Contractors" rather than "Consultants".
But i still see that lot of people working as "Consultants" . Not getting which is good!
 

Now this is something, which i would say depends on the calibre of the person, Honestly speaking,Everything has it own pros and cons.. thus, You cant do business unless you are willing to take a chance/risk in it. hence, dont worry about all these things. Just go ahead, with it.. who knows may be you can run a business better as consultants than contractors or vice versa.

Cheers
 

There may be differences in different countries, but to me the distinction is:

Contractor - works on company premises using their tools under their supervision. Hourly paid. Can be fixed term contract or ongoing. Very much like a real job, only temporary. Weekly or monthly paid.

Consultant - commissioned to deliver a specific result. Often fixed price for the job (what the consultant quotes - not dictated by the customer, although can be negotiated). Works off site using own facilities and then delivers the work. Occasional meetings along the way. Payment at end, possibly with stage payments during the work.

Keith
 

Thanks All, your information really helped!
 

In India or Tokyo, consultants are expensive than contractors. Reason is simple. Consultants need for specific issues, where as contractors are needed for normal execution of their own flow.
In reality, Consultants are more knowledgeable than others (but some times, they are also dumb).

As Per the first question :
-Library development is challenging than service providers. Out of 100 new ventures, you can see hardly 1 or 2 LIB developers , where as service providers can be found in every street in Silicon valley.
Honey well succeeded in the LIB developer. Only issue is need good talent and VC to bare you for 5 yrs to come to market, where as service providing company can start on the immediate next day with even your skills. later, you can acquire the people of likely minded without even penny of investment.

Cons of Service providers :
1. Retaining the talent is difficult and Backend engineers CTC will be too high compared to FE guys. Small companies cant sustain if utilization is below 75% in the year of backend engineer, where as big service providers on the average 60% utilization.
2. Even though you are ready to pay high end salary with minimal margins, they expect 28 nm or lower technology node work at client place, which is difficult.
3. The margins are very low in ASIC industry in Asian countries. untill and unless have very good back up for 2 yrs, difficult to sustain in the industry.
4. More over, many product companies will expect to be in Public ltd companies to give more and more work, which is one more hurdle to cross by small firms.

I feel below model will work if you have resources. Start with small services, get confident of people and customers. Talk to Intel,TI,Broadcom or any big player and check for investment for Library development after proving the results. It will give good benefits.

The only differentiation should be : how fast PPA goals can meet with your libraries?. You may need to talk to Foundries to if you have really want to go in the LIB business model.


Best of luck.
 
Hi Sam536,

Agree with your points:
1. that "Out of 100 new ventures, you can see hardly 1 or 2 LIB developers".
2. where as service providing company can start on the immediate next day with even your skills. later, you can acquire the people of likely minded without even penny of investment.

But whatever the challenges as you mentioned under "Cons of Service providers : " were also present in LIB DEV business too.
As I am presently in the LIB DEV domain, i have seen by closely that challenges in LIB DEV business. According to me to dive into this business model, needs a lot of time/building up a team as you mentioned in your post, whereas other option, like Custom Layout/Physical Design (RTLtoGDS2) can be started with single man ex. as a Consultant. Also as per the number as well, there are more companies in other domain compared to Library Development, i feel its bit risky to enter Library domain rather entering to RTLtoGDSII business which is considered to be safer domain (starting point to be working as a consultant).

Thanks for your comments.
 

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