Self-reliance in Semiconductor Design: The Main Ingredient for India's Success in Deep Tech Innovations
Self-reliance in Semiconductor Design: The Main Ingredient for India's Success in Deep Tech Innovations
As the world moves further into a future defined by deep-tech technologies like artificial intelligence (AI), the Internet of Things (IoT), 5G, and automation, it's evident that semiconductors are no longer just another component—they are the backbone of innovation.
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Undoubtedly, we are in the middle of a technological revolution. While we enjoy using devices that shape our world behind the scenes, it's not the devices but the tiny chips that make the magic happen. These semiconductor chips, be it in smartphones, EVs, drones, servers, or satellites, are the real game-changers. They enable computing, connectivity, and automation. As the world moves further into a future defined by deep-tech technologies like artificial intelligence (AI), the Internet of Things (IoT), 5G, and automation, it's evident that semiconductors are no longer just another component—they are the backbone of innovation.
Thus, for India to succeed in deep-tech innovation, we must start by strengthening that foundation.
The gap: High demand, low domestic design
Design is where the real value lies. It's the starting point of innovation. Currently, only a few countries dominate the global semiconductor industry. Most chips are designed and manufactured in Taiwan, the U.S., South Korea, Japan, and China, and they lead the value chain by owning IP and controlling production.
For India, despite being one of the biggest consumers, it still relies heavily on imports. When it comes to design and manufacturing, the gap is stark. We import the majority of chips from global giants, exposing us to several vulnerabilities - such as trade wars or diplomatic issues, which can disrupt access to critical chip tech. This dependency creates several challenges, be they economic, technological, security, or even strategic.
In the backdrop of this, India has begun its journey to self-reliance. We are making steady strides in semiconductor manufacturing. Several projects are underway, and partnerships with global players are helping lay the groundwork. However, chip fabrication has a longer gestation period due to its complexity and capital-intensive nature. What one often misses is that setting up a fab isn't just about machinery—it requires extreme precision and a highly controlled environment. Did you know that a chip fabrication facility needs to be even cleaner than an operating room used for brain surgery? To fast track this effort, India is partnering with global players allowing for knowledge exchange, advanced research, and investment in local talent.
And while manufacturing ramps up over time, chip design is an area where India can move faster. It's less infrastructure-heavy but rich in value. By strengthening our design capabilities, India can take control of IP, empower startups, reduce import reliance, and boost innovation across sectors. A critical initiative in this space was launched by the government through the Design-Linked Incentive (DLI) scheme. It provides financial and infrastructure support to semiconductor design startups. So far, about 65 companies have received approval. This marks a strong step forward for India in the global chip design race.
In conclusion, design is just the start for the deep tech space in India. Better chips mean smarter devices. Local chips mean better control. India can build smarter products at home, which will bring more investment, more jobs, and more innovation.
This focus is not just about building more design companies and reducing imports, but about building a future where India shapes the tools that shape the world. With the right talent, the right policies, and the right partnerships, India has the potential to become a global hub for semiconductor innovation and lead the next wave of deep-tech disruption.
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Undoubtedly, we are in the middle of a technological revolution. While we enjoy using devices that shape our world behind the scenes, it's not the devices but the tiny chips that make the magic happen. These semiconductor chips, be it in smartphones, EVs, drones, servers, or satellites, are the real game-changers. They enable computing, connectivity, and automation. As the world moves further into a future defined by deep-tech technologies like artificial intelligence (AI), the Internet of Things (IoT), 5G, and automation, it's evident that semiconductors are no longer just another component—they are the backbone of innovation.
Thus, for India to succeed in deep-tech innovation, we must start by strengthening that foundation.
The gap: High demand, low domestic design
Design is where the real value lies. It's the starting point of innovation. Currently, only a few countries dominate the global semiconductor industry. Most chips are designed and manufactured in Taiwan, the U.S., South Korea, Japan, and China, and they lead the value chain by owning IP and controlling production.
For India, despite being one of the biggest consumers, it still relies heavily on imports. When it comes to design and manufacturing, the gap is stark. We import the majority of chips from global giants, exposing us to several vulnerabilities - such as trade wars or diplomatic issues, which can disrupt access to critical chip tech. This dependency creates several challenges, be they economic, technological, security, or even strategic.
In the backdrop of this, India has begun its journey to self-reliance. We are making steady strides in semiconductor manufacturing. Several projects are underway, and partnerships with global players are helping lay the groundwork. However, chip fabrication has a longer gestation period due to its complexity and capital-intensive nature. What one often misses is that setting up a fab isn't just about machinery—it requires extreme precision and a highly controlled environment. Did you know that a chip fabrication facility needs to be even cleaner than an operating room used for brain surgery? To fast track this effort, India is partnering with global players allowing for knowledge exchange, advanced research, and investment in local talent.
And while manufacturing ramps up over time, chip design is an area where India can move faster. It's less infrastructure-heavy but rich in value. By strengthening our design capabilities, India can take control of IP, empower startups, reduce import reliance, and boost innovation across sectors. A critical initiative in this space was launched by the government through the Design-Linked Incentive (DLI) scheme. It provides financial and infrastructure support to semiconductor design startups. So far, about 65 companies have received approval. This marks a strong step forward for India in the global chip design race.
In conclusion, design is just the start for the deep tech space in India. Better chips mean smarter devices. Local chips mean better control. India can build smarter products at home, which will bring more investment, more jobs, and more innovation.
This focus is not just about building more design companies and reducing imports, but about building a future where India shapes the tools that shape the world. With the right talent, the right policies, and the right partnerships, India has the potential to become a global hub for semiconductor innovation and lead the next wave of deep-tech disruption.
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