Possibility of India emerging as a chip design hub is now more real than ever

Local startups, with academia-industry participation, are designing, developing and testing chipsets and microprocessors

Sateesh Andra, managing director, Endiya Partners

The semiconductor industry is witnessing growth at breakneck speed with the adoption of advanced technologies such as artificial intelligence, machine learning, autonomous vehicles, robotics, and augmented reality and virtual reality.

The US is the leader in the semiconductor segment, with firms such as Qualcomm, Nvidia, and Intel. China, on the other hand, is the world’s largest purchaser. It has established its dominance in the hardware and semiconductor ecosystem. Experts predict the adoption of local Chinese semiconductors jumping to 70% by 2025.

However, the recent trade spat between the US and China may well be a boon for India’s semiconductor sector. Does this mean that opportunity beckons for India? India certainly has momentum in lieu of an entrepreneurial mindset, adequate talent, and structural reforms. And with increasing demands, the need for India to transform itself into a semiconductor powerhouse, and not just a consumer, has never been so starkly prominent.

The government has taken steps to jump-start semiconductor start-ups with the creation of the Electronics Development Fund. Local start-ups, with academia-industry participation, are designing, developing and testing chipsets and microprocessors. One hopes to see the rise of new-age chip companies that address the Indian as well as global markets. The million-dollar question is, can Indian semiconductor start-ups handle competition on an equal footing amid limited availability of equity?

In spite of the many teething snags, the policies have been rolled out to facilitate the idea of India’s homegrown chip start-up ecosystem. The possibility of India emerging as the next chip design hub is now more real than ever.