TRENDS IN THE INDIAN SEMICONDUCTOR INDUSTRY

Rising Tide

India's semiconductor industry is rapidly growing amidst global supply chain shifts. Backed by initiatives like the Indian Semiconductor Mission (ISM), India is becoming a competitive player in the semiconductor market. With a focus on talent development and strategic investments, the nation attracts significant international interest and investment. The ISM's subsidies and policies drive growth, aiming to reduce import dependence and strengthen domestic capabilities. Positioned as a key player in the global semiconductor landscape, India is primed for transformative growth.

Smaller Process Nodes, Fab & India’s Bet

India's semiconductor industry is advancing rapidly, focusing on R&D for smaller process nodes like 45nm to boost performance and energy efficiency. The approval of three new semiconductor fabs worth $11 billion underscores India's commitment to becoming a major chip-making hub, offering capabilities from 28 to 110 nanometers. Investments in assembly, testing, and packaging facilities, alongside advancements in EUV lithography and materials like GaN and SiC, strengthen India's semiconductor ecosystem. Global Capability Centers by chip giants Qualcomm and AMD solidify India's importance, with Bengaluru emerging as a key design hub.

AI in semiconductor

The rise of AI is driving innovation in the chip industry, with India actively participating through initiatives like the National Mission on Quantum Technology and Scientific Computing. Investors are keenly eyeing Indian startups leading in AI and ML hardware solutions, foreseeing disruptive innovation. Indian semiconductor companies are meeting the demand for energy-efficient chips tailored to edge computing and IoT applications, leveraging expertise in SoC design and sensor integration. Despite challenges like cost competitiveness, India's significant pool of semiconductor engineers and partnerships with industry bodies like IESA and SEMI propel its ambition to become a global semiconductor hub.

Growth and Sustainability

Indian semiconductor companies face the imperative of addressing security, sustainability, and supply chain resilience amidst rapid innovation. Robust cybersecurity measures and sustainable practices are crucial for maintaining trust in an increasingly interconnected landscape. Building resilient supply chains and reducing dependencies on foreign sources are essential for navigating geopolitical uncertainties. Embracing trends like smaller process nodes, AI, and edge computing positions Indian semiconductor firms for significant growth, driving economic advancement and technological progress globally.