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How Is India Poised to Lead in Indigenous Chip Design: What Are the Emerging Trends Shaping the Future of Chip Design?

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By Shashwath TR, Co-founder & CEO of Mindgrove Technologies

Semiconductor innovation is driving technological progress across consumer electronics, automotive and beyond. India, once primarily a buyer in this industry, is now taking decisive steps to reduce its 85% dependence on imports. This dependence poses significant security risks to India’s technological sovereignty. To counter this, the government and industry are working together to establish India as a semiconductor innovation hub– focusing on talent development , R&D, indigenous design, and domestic manufacturing. There are numerous applications of the advanced technologies we can witness in the electronics industry of our country and an ideal chip to power these devices is essential.

Let’s take IoT for example; We can already see its presence not only in industries but in households too, in the form of ‘smart’ connected devices! Right from wearable electronics like smart watches to bigger consumer electronics like the ceiling fans have started their march towards becoming smart and connected. With such advancements in place comes the need for a potential and versatile chip design – which does the job pretty well and delivers the highest performance with the highest efficiency and in a cost-efficient manner. It is innovation that drives success in the field of electronics. With a growing tech ecosystem and a strong digital economy, India is set to lead in producing high-performance electronic devices that are powered by emerging technologies such as IoT and complex vision processing. The chip design space has been showing signs of steady development and the vision to design and develop chips for India and the world is clearly becoming a reality!

Trends Shaping India’s Semiconductor Landscape

India’s semiconductor ambitions are backed by key government initiatives driving investment, innovation, and manufacturing. Programs like the India Semiconductor Mission, Design-Linked Incentive (DLI), and Production – Linked Incentive (PLI) are fueling chip design startups, semiconductor foundries, and R&D hubs– building a self-sustaining ecosystem.

India’s ₹76,000 crore (US$10 billion) PLI Scheme, launched in December 2021, is its largest industry commitment, underscoring semiconductors’ strategic importance. It has attracted manufacturers, with five projects in the pipeline, while 55 companies benefit from the DLI Scheme. Progress is evident, but continuous evaluation is key to overcoming challenges and ensuring long-term success. Also, India’s semiconductor push is accelerating with key projects underway like the approval of the first semiconductor unit in Sanand, Gujarat, in June 2023 followed by three more in February 2024. Tata Electronics has started building fabs in Dholera, Gujarat, and Morigaon, Assam, while CG Power is setting up in Sanand. With rapid construction in progress, these four units are shaping a strong semiconductor ecosystem. Representing a ₹1.5 lakh crore investment, they are set to produce 7 crore chips daily, solidifying India’s global semiconductor presence.

India’s semiconductor market, valued at $34.3 billion in 2023, is projected to reach $100.2 billion by 2032, driven by rising demand in automotive, telecommunications, and deep tech. With a strategic government’s efforts, India is transitioning from a chip consumer to an innovation hub, fostering a competitive and self-reliant industry. Chip design evolution will be shaped by emerging technologies like IoT, Vision Processing, and AI,which require advanced, versatile chips. The global race is intensifying– Samsung’s $230 billion investment in the world’s largest semiconductor facility highlights this competition. In India, government initiatives, and private sector collaboration are fueling innovation, reinforcing the nation’s commitment to semiconductor leadership.

The Way Forward
India is poised to become a key player in the global semiconductor supply chain by investing in talent and infrastructure. It is addressing challenges, leveraging its expanding tech ecosystem, and driving innovation through government-private collaboration. The groundwork laid today is shaping a more self-reliant and thriving technological future.

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