India to be Synaptics' second largest site by next year, to double headcount by 2028: Venkat Kodavati

In a move to fortify its foothold in the Indian market, US-based tech company Synaptics is expected to expand its operations in the subcontinent. The company, known for its human interface hardware, software solutions, and Internet of Things (IoT) technologies, first set foot in India back in 2017 with the acquisition of Marvell’s multimedia solutions business.

Speaking to TechCircle, Venkat Kodavati, the Senior Vice President and General Manager of Wireless Products at Synaptics, spoke about the growth trajectory the company has experienced in India. Since its inception, Synaptics in India has grown sixfold to over 300 employees, with expectations to double this number within the next 3 to 4 years. Synaptics India business nearly tripled between FY21 and FY23 to around ₹177 crore.

Synaptics was founded in 1986, starting with the personal computer interface hardware and software before moving mobile phase. However, in 2017 the company made strategic pivot towards the IoT, encompassing a suite of sensing, processing, and connectivity solutions.This diversification strategy gained further momentum in 2020-21 with the strategic acquisitions of Broadcom’s wireless IoT connectivity portfolio and DisplayLink. Kodavati said that the India business strength has been especially pronounced in the processing and connectivity aspects of its IoT business. 

“In India, we focus on the wireless side where operate on end to end cycle. About 80% of the wireless technology team sits in India,” said Kodavati. The end to end wireless product development that Kodavati mentioned involves all the components (except chip fabrication) – building concept and algorithm to chip architecture, the physical design, and testing. Notably, India is poised to become the second largest site for the company by next year. Kodavati added that the wireless business of Synaptics has quadrapled in the last three years, which also gives it the chance to target about $10 billion serviceable available market (SAM). On the processing side, Synaptics is aiming for $25 billion SAM.

To be sure, the company announced its earnings for second quarter last week. Synaptics reported net revenue of $237 million, along with registering a loss of $9 million. For the quarter ending March, Synaptics said that it expects to earn revenue in the range of $220 million to $250 million.

“There were two headlines for us this quarter. First, our business overall has stabilised, and we have clearly hit the bottom of our cycle. Second, our Core-IoT area, led by our wireless products, is expected to see topline revenue improvement and sustained growth from this point forward,” said Michael Hurlston, Synaptics’ President and CEO. To be noted, the company categorises wireless networking and edge processing in its $2.2 billion worth (as reported at Synaptics Investor Day 2023) of Core IoT area; while enterprise+automotive IoT section is valued at $2.7 billion.