India’s Role in the Global Semiconductor Industry: Advancements in Chip Design and Manufacturing
As the semiconductor industry undergoes transformative changes, driven by the proliferation of 5G technology, escalating cryptocurrency mining demands, and vigorous governmental digitalisation initiatives, India is emerging as a pivotal player on the global stage. This rise is not merely a consequence of global supply chain shifts but a testament to India's strategic investments, burgeoning talent pool, and robust government initiatives.
A surge in Semiconductor Demand
The semiconductor sector has witnessed a remarkable surge in demand, propelled by technological advancements and shifting geopolitical landscapes. India's semiconductor market, currently valued at approximately $23.2 billion, is poised for exponential growth, with projections indicating it could reach $80.3 billion by 2028, reflecting a compound annual growth rate (CAGR) of 17.10%. This surge is driven by intensified geopolitical tensions, particularly between the United States and China, which have strained global supply chains and elevated the need for resilient, diversified semiconductor sources.
"India’s investments in new semiconductor fabs and advanced manufacturing technologies are reinforcing its position as a global semiconductor hub."
India’s Strategic Position
India’s strategic positioning as a burgeoning semiconductor hub is supported by a vast population exceeding 1.4 billion and a robust educational infrastructure. The country’s semiconductor ecosystem benefits significantly from the Ministry of Electronics and IT’s (MeitY) ambitious $10 billion India Semiconductor Mission (ISM). This initiative aims to stimulate innovation and alleviate supply chain disruptions through substantial capital infusion, manufacturing incentives, and the Design Linked Incentive (DLI) scheme, which bolsters fabless startups and nurtures a thriving semiconductor landscape.
Government Initiatives and Incentives
India’s commitment to fostering a competitive semiconductor sector is reflected in its suite of strategic government initiatives. The 'Make in India' programme, launched in 2014, is designed to enhance manufacturing capabilities and position India as a global manufacturing hub. Complementing this, the Production Linked Incentive (PLI) scheme, offering $1.7 billion in incentives, aims to attract semiconductor manufacturers by mitigating entry barriers and creating a favourable investment climate. Additional schemes such as the Design Linked Incentive (DLI), Chips to Startup (C2S), and Scheme for Promotion of Electronic Components and Semiconductors (SPECS) further bolster these efforts, creating a comprehensive support framework for the semiconductor industry.
"With projections indicating the semiconductor market could reach $80.3 billion by 2028, India’s role in this industry is set for exponential growth."
Advancements in Chip Design & Manufacturing
India is at the forefront of innovations in chip design, characterised by a shift towards more advanced and high-performance solutions.
Trends in AI Chip Design
India's semiconductor sector is making significant strides in chip design, propelled by cutting-edge advancements in artificial intelligence (AI) and machine learning (ML). The integration of these technologies is reshaping chip functionality, enhancing both performance and efficiency.
AI-Driven Design Innovations
A pivotal development in AI chip design is the application of AI-driven Electronic Design Automation (EDA) tools. These tools are essential for every phase of the research and development (R&D) process, from architecture and verification to implementation and manufacturing. The infusion of AI across the EDA stack is automating the design process, leading to substantial improvements in engineering productivity and silicon quality.
This evolution is characterised by AI-driven optimisation and data analytics, which facilitate more efficient design processes. The introduction of AI capabilities into the EDA suite allows for unprecedented gains in turnaround times across the design flow, encompassing digital, analogue, and 3D design, as well as verification and testing. These advancements are not only accelerating design cycles but also enhancing the overall quality of semiconductor products.
Accelerated Computing and Silicon-Proven IP
Accelerated computing is another crucial aspect of India's chip design advancements. By leveraging GPU and CPU + GPU architectures, significant runtime improvements of up to 15x have been achieved in compute-intensive EDA tasks. This technology is particularly advantageous for managing large analogue circuits, such as those found in memory components.
Moreover, the availability of silicon-proven intellectual property (IP) has proven instrumental in boosting productivity. By incorporating a broad portfolio of high-quality IP, semiconductor designers can focus their resources on developing differentiated capabilities rather than reinventing the wheel. For instance, the introduction of IP solutions like PCIe 7.0 addresses the need for increased bandwidth and lower latency, catering to the growing demands of AI-driven data centres.
Multi-Die Designs
The shift from single-die to modular, chiplet-based designs marks a significant evolution in semiconductor technology. This transition allows for the rapid integration of advanced functionalities within trillion-transistor systems. India is at the forefront of this transformation, driven by comprehensive and scalable EDA and IP solutions. The focus on multi-die designs, including AI-driven 3D design space optimisation, facilitates swift and high-quality heterogeneous integration, enhancing overall system performance.
Excellence in Chip Manufacturing
India's commitment to becoming a global semiconductor hub is evident in its substantial investments in new fabrication facilities and advanced manufacturing technologies. The approval of three new semiconductor fabs, with a collective investment exceeding $15 billion, underscores the country's dedication to advancing its chip-making infrastructure.
These new fabs will utilise state-of-the-art technologies, including extreme ultraviolet (EUV) lithography, to produce chips across a spectrum of process nodes ranging from 28 to 110 nanometers. This investment not only elevates India's manufacturing capabilities but also strengthens its role in the global semiconductor supply chain. The development of assembly, testing, and packaging (ATP) facilities further consolidates the semiconductor ecosystem, addressing the increasing demand for high-performance and reliable semiconductor components.
Advancements in Technology
Technological advancements are central to India’s semiconductor ambitions. The integration of materials such as gallium nitride (GaN) and silicon carbide (SiC) is enhancing the performance and efficiency of semiconductor devices. These materials are critical for applications requiring high power density and thermal management, such as electric vehicles and advanced telecommunications systems. The focus on smaller process nodes is also a key aspect of India’s strategy, with the development of chips with smaller geometries promising greater performance and energy efficiency. This emphasis on advanced process technologies reflects India’s commitment to remaining at the forefront of semiconductor innovation.
Security and Sustainability
The interconnected nature of modern technology necessitates robust cybersecurity measures to safeguard data and intellectual property. Additionally, sustainable practices in semiconductor manufacturing are essential for mitigating environmental impact and ensuring long-term viability. Building resilient supply chains is also a priority, with efforts to reduce dependence on foreign sources and enhance domestic capabilities to safeguard against geopolitical uncertainties and supply disruptions.
Wrapping it Up
India’s advancements in chip design and manufacturing highlight its strategic alignment with global technological trends and market demands. By investing in innovative design practices, state-of-the-art manufacturing technologies, and strategic global partnerships, India is poised to establish itself as a key player in the semiconductor industry. As the country continues to evolve and adapt to the dynamic landscape, its role in driving technological progress and economic growth on a global scale is set to become increasingly significant.
