India Becomes Global Chip Design Hub Amid Supply Chain Shift

For years, countries like Taiwan and South Korea have dominated discussions around semiconductor alliances because of their advanced fabrication facilities, while Japan has been known for its strength in materials and equipment.

In comparison, India has often been seen as a smaller player. However, experts now said that India's real strength lies in its human capital, especially in chip design and engineering, according to the Directus report.

India is estimated to account for nearly 20 per cent of the world's integrated circuit (IC) design workforce.

This is supported by a large pipeline of engineering graduates every year. Global technology giants such as Intel, NVIDIA, and Qualcomm already run major research and development centres in India, employing thousands of engineers.

These teams work on chip design, verification, and embedded systems, helping companies expand their operations efficiently at lower costs.

While India is still in the early stages of building high-end chip fabrication units, it has started focusing on the mid-stage of the supply chain, including assembly, testing, marking, and packaging (ATMP).

A major example is Micron Technology, which is setting up a $2.75 billion facility in Gujarat.

This approach allows India to enter the semiconductor value chain faster while gradually building capabilities for more advanced manufacturing, the report stated.

The government is also stepping up efforts to strengthen the sector. Under the India Semiconductor Mission 2.0, authorities are working to boost design talent, support start-ups, and create a more resilient chip ecosystem.

A key part of this initiative is the Design Linked Incentive (DLI) Scheme, which offers financial support and access to tools and infrastructure needed for chip design and development.

Global companies are increasingly showing confidence in India's policy direction.

Taiwan's Powerchip Semiconductor Manufacturing Corporation has partnered with Tata Electronics to build the country's first commercial wafer fabrication plant in Gujarat, with an investment of around $11 billion.

- IANS