Synopsis
A report indicates that semiconductor demand in India is projected to reach 28% by the end of 2026, closely matching the global demand of 29%. This increase is driven by rising needs for AI chips and custom silicon in various industries.Key Takeaways
- Projected 28% demand increase in India by 2026
- 96% of firms expect higher AI chip demand
- 54% are currently using custom silicon chips
- 50% see AI/ML as key semiconductor advancement
- 52% confident in ongoing semiconductor innovation
New Delhi, Jan 28 (NationPress) The demand for semiconductors in India during the era of artificial intelligence (AI) is projected to rise to 28 percent by the end of 2026, closely aligning with the anticipated global demand of 29 percent, as detailed in a report released on Tuesday.
A significant number of downstream organizations foresee a surge in demand for AI chips, custom silicon chips, and memory-intensive chips in the coming year, according to findings from the Capgemini Research Institute (CRI).
Approximately 96 percent of the surveyed Indian downstream organizations expect a rise in demand for AI chips or chips tailored for AI acceleration, compared to 88 percent globally.
Likewise, nearly 96 percent of Indian downstream organizations anticipate increased demand for custom silicon chips (custom ASIC), versus 81 percent of global counterparts, the report indicated.
Furthermore, 82 percent of Indian firms are looking forward to a rise in demand for memory-intensive chips (HBM, GDDR6), compared to 79 percent globally.
At present, 54 percent of Indian downstream organizations are utilizing custom silicon chips in their offerings, which is closely comparable to 56 percent of global organizations.
Downstream industries entail the final phases of production and marketing of goods, where raw materials are transformed into finished products.
The report reveals that 50 percent of Indian downstream firms regard advancements in AI/ML acceleration as the most significant semiconductor innovation for their sector, while 45 percent believe that innovations in GPU computing will yield the most benefits.
Among the technological innovations sought by Indian downstream organizations, enhanced security ranks highest, with 50 percent of respondents indicating this preference, followed by 48 percent selecting the availability of more comprehensive APIs, SDKs, kits, boards, etc., and 46 percent opting for enhanced customization.
Additionally, 52 percent express confidence that the semiconductor sector will continue to evolve at a pace that fulfills future requirements.
