India’s Chip Dreams Take Shape

India’s Chip Dreams Take Shape

India’s semiconductor industry is at a pivotal juncture, striving to bridge the technological gap with global leaders like Taiwan and South Korea.

India’s semiconductor industry is undergoing rapid development with the government at the helm. The India Semiconductor Mission, launched with a $10 billion investment, is a key pillar driving self-reliance. Alongside this, the country has attracted major manufacturing projects like Micron’s fab and Kaynes Technology’s new plant, which aim to boost the local production of semiconductors and support industries like automotive, telecom, and electronics.

Government incentives such as the Design Linked Incentive (DLI) scheme provide much-needed support for R&D and innovation, positioning India to grow exponentially in this space. However, challenges remain, including resource management and skill shortages, which the government is addressing through long-term policies and partnerships.

Companies like Mindgrove Technologies and Flex AI are optimistic about India’s potential to emerge as a significant player in the global semiconductor arena. With the country’s increasing focus on R&D, talent development, and government-backed initiatives, the industry is poised for a period of exponential growth.

We are building chips for two broad product segments: (a) IoT smart connected devices and (b) applications that need vision processing. We believe that both of these segments are exploding and need hardware security acceleration, which we provide. - Shashwath T R, Co-founder & CEO of Mindgrove Technologies

Prioritizing Market Opportunities

Unlike focusing solely on technological prowess, Indian semiconductor companies are prioritizing market opportunities. By identifying pressing needs like smart electricity meters, companies can concentrate on innovations that drive growth. This approach mirrors the success stories of global giants like TI, Sony, ARM, and Foxconn.

According to Shashwath T R, Co-founder & CEO of Mindgrove Technologies, India’s semiconductor sector should prioritize market-driven innovation over chasing purely technological advancements. He references global success stories like Texas Instruments’ dominance in calculators and ARM’s chips for Nokia phones, illustrating how focusing on emerging market needs can catapult companies to global relevance.

One immediate opportunity lies in India’s transition to IoT-based electricity meters. “This is a massive market need,” says Shashwath, “and doesn’t necessarily require cutting-edge technology.” By catering to such pressing demands, Indian companies can make significant strides both locally and internationally, without relying on the most advanced tech innovations.

Meanwhile, Brijesh Tripathi, CEO of Flex AI, emphasizes the need for stronger chip design capabilities within India. While the country continues to develop its semiconductor manufacturing infrastructure, design innovation remains an area requiring urgent attention. “India will need local chip design companies to fill its future fabs and factories,” he notes, advocating for a robust design ecosystem even as the manufacturing landscape matures.

Government Policies: Key to Semiconductor Growth

The Indian government has played a pivotal role in fostering a favourable environment for semiconductor manufacturing.

The Design Linked Incentive (DLI) scheme, for instance, has provided significant support to design companies like Mindgrove Technologies. While the current support is deemed sufficient, there’s always room for further enhancement, such as incentivizing domestic silicon usage and mandating local sourcing of chips.

Both leaders agree that government support has been critical to the growth of the semiconductor sector. Shashwath highlights the benefits of the Design Linked Incentive (DLI) scheme, which has directly aided companies like Mindgrove in their R&D efforts. “We are fortunate to have government backing in this sector,” he asserts.

The government could consider incentivizing domestic silicon usage and mandating a portion of chips consumed by the Indian market to be sourced locally. These measures would not only boost domestic production but also reduce reliance on foreign supply chains.

Our semiconductor roadmap aligns with the maturity of our cloud services, which will become the launch vehicle for our custom solution. We are proud to partner with local datacenter and system assembly partners to accelerate our design and manufacturing capabilities. - Brijesh Tripathi, CEO of Flex AI

However, Brijesh points out that India’s R&D infrastructure and supply chain have yet to reach the maturity of countries like the U.S. and China. To bridge this gap, he suggests that the government provide financial incentives for companies that use domestic silicon and mandate that a portion of chips consumed within India be sourced locally. Such measures would not only boost local production but also reduce reliance on international supply chains, improving India’s self-sufficiency in this crucial sector.

Addressing Talent and Skill Gaps

As India’s semiconductor sector expands, a looming skill shortage presents a major challenge. Mindgrove Technologies, a fabless design company, is currently able to access the talent it needs, but Shashwath acknowledges the broader issue. “The entire sector will employ millions in the near future,” he says, “and there will be a skill shortage at every level.”

Flex AI’s Brijesh, however, is optimistic about India’s existing talent pool, noting that many skilled engineers and IT professionals from adjacent industries like electronics manufacturing are well-positioned to transition into semiconductor roles. Nonetheless, both companies stress the importance of further upskilling and growing the talent pipeline to meet the sector’s rapid expansion.

Competing on the Global Stage:

Strategic Alliances

Mindgrove Technologies and Flex AI are each taking unique approaches to embed themselves in the global semiconductor supply chain. Mindgrove leverages best-in-class global tools, IP, and manufacturing facilities to remain competitive, while Flex AI has embraced an innovative strategy by first developing an AI cloud service that will act as the launchpad for its semiconductor products.

“Our semiconductor roadmap aligns with the maturity of our cloud services,” explains Brijesh, adding that partnerships with local datacenters and system assembly partners have been crucial in accelerating their design and manufacturing capabilities.

Capitalizing on the Future

India’s future in the semiconductor industry hinges on its ability to capitalize on emerging trends, particularly in the field of chiplet technologies. Brijesh predicts that chiplets, which enable faster development cycles and reduced dependency on single-solution providers, will play a central role in India’s semiconductor evolution. He envisions India as a global hub for chiplet development, contributing significantly to the growing demand for computing power worldwide.

As the industry evolves, India is positioning itself to capitalize on emerging trends like IoT and vision processing. Companies are investing in hardware security acceleration and exploring chiplet technologies. The country’s potential lies in its ability to develop an ecosystem around chiplets and support innovation in packaging, thermal management, and power delivery. Chiplets, which are smaller, more modular components, can enable faster innovation cycles and reduce dependency on single solution providers.

India’s ambition to become a global semiconductor power is within reach, but the journey is multifaceted. The key to success lies in combining technological advancements with market-driven innovations, government support, and strategic alliances.

Mindgrove Technologies, on the other hand, is focusing on IoT smart connected devices and vision processing applications—two rapidly growing segments that increasingly require hardware security acceleration. Shashwath believes these areas present immense growth potential for Indian companies, both domestically and internationally.

Challenges and Opportunities

While India’s semiconductor journey is promising, it faces several challenges. Infrastructure development, access to capital, and competition from established players are some of the key hurdles. However, the country also presents significant opportunities. Its large domestic market, growing economy, and government support can provide a fertile ground for semiconductor growth.

India’s Semiconductor Journey to Global Leadership

India’s ambition to become a global semiconductor power is within reach, but the journey is multifaceted. The key to success lies in combining technological advancements with market-driven innovations, government support, and strategic alliances. By fostering local talent, encouraging design innovation, and prioritizing market opportunities, India can carve out a critical role in the global semiconductor industry.

As Flex AI’s Brijesh highlights, the next wave of breakthroughs in semiconductor technology will come from advancements in packaging, thermal management, and power delivery—areas where India can play a leading role. With the right investments in infrastructure, talent, and innovation, India is well-positioned to shape the future of the semiconductor industry and compete on the global stage.

aanchalg@cybermedia.co.in