India Positioned to Lead Semiconductor Industry as Global Demand for AI-Driven Solutions Rises
New Delhi: India, known primarily for its IT sector, is poised to play a key role in the semiconductor industry with global demand for AI-driven solutions on the rise. Electronics and semiconductors now contribute 5.6% of India's GDP.
Marvell Technology, an American semiconductor giant, is among the leading companies that has set up a strong presence in India. The company plans to expand its operations in Bangalore, Pune, and Hyderabad with over 1,500 employees on board.
The increasing demand for AI-driven solutions has given Marvell Technology an edge in terms of revenue per employee, as stated by Sandeep Bharathi, CDO at Marvell Technology. Bharathi highlighted that the company's focus is on advancing data infrastructure to enable faster and more secure data processes.
In a global market dominated by giants like NVIDIA, Broadcom, Qualcomm, and AMD, Marvell Technology remains competitive due to its ability to innovate and bring revolutionary technologies to the table.
A major challenge for companies in the semiconductor industry is cost. Developing a single chip can range from $100 million to $200 million, making precision crucial for success. However, Bharathi believes that this investment will pay off as customers seek efficient and energy-efficient solutions.
Packaging technologies play a critical role in the development of sophisticated semiconductor chips. 2D, 2.5D, 3D, and 3.5D packaging innovations have helped create cost-effective and energy-efficient data centre solutions. Bharathi added that signaling technologies necessary for data movement from chip to chip or rack to rack are indeed complex.
To stay ahead in the industry, Marvell Technology prioritizes R&D with a focus on cutting-edge geometries like 3nm and 2nm. The company aims to enhance its semiconductor solutions for AI applications and new industries such as automotive.
India aims to significantly increase its contribution to semiconductor manufacturing by growing from 10% to 40-50% of the total value addition in this field by 2047. To achieve this goal, partnerships between Indian companies and global players are crucial for developing innovative products that cater to growth areas like mobility, renewable energy, and telecommunications.
The two-wheeler market presents a significant opportunity for India's semiconductor ecosystem as demand for electronic gadgets is high. Subramaniam emphasized that creating product management and system design talent will be essential in ensuring end-to-end capabilities.
As global dominance shifts towards Asia, securing a seat at the global technology table by developing strong domestic manufacturing capabilities and nurturing partnerships with leading companies becomes crucial for Indian players in the semiconductor industry.