Government investment, and an entrepreneurial spirit, is turning India into a centre for semiconductor design. Investment from high-tech companies has created an educated workforce which is limited only by an institutional bias towards software investments.
India’s software industry is well established, but hardware development is more nascent. For the last 20 years foreign semiconductor companies have been running development centers in India, so there’s plenty of talent available. The Indian government is also keen to help, investing $32m in “Building an End-To-End 5G Test Bed” as well as various other initiatives.
Although several promising startup companies have been launched in India in the last few years, they still struggle with long-term funding and financial support. Indian investors are often more focused on software, where results are typically seen on a much shorter time scale and investments are supported by a history of profitable investment.
However, as my colleague Gaurav Gupta notes in Market Trends: Leverage India’s Chip Design Talent to Gain Competitive Advantage in 5G, this is a great opportunity for global TSPs to invest in chip-design startups in India. The skills, materials, and regulatory factors are all in place for India to become a significant source of semiconductor innovation.
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