India’s Chip design ecosystem

Microchip are used in a wide variety of electronics devices including computers, smart phones, televisions, cars and appliances such as pacemakers etc.

Microchips are marvel of modern technology; they are small powerful and versatile. The first microchip was invented in 1958 by Jack Kilby at Texas instruments.

What are the border industry dynamics?

  1. A. Any policy directed towards the semiconductor industry be it manufacturing or design requires a long-term strategy as the sector is capital intensive and involves sizeable cost in:
  2. setting up fabrication units
  3. upscaling manufacturing capabilities and equipment such as thermal stimulators
  4. pushing research.
  5. B. Moreover, return from the investment are not immediate as setting up design and fabrication units involves long gestation periods.

Industry body NASSCOM says it takes up to 2 – 3 years before the first product is out.

  1. Chips designing require higher instrument than the traditional aggregator company.
  2. Supply chain disruption, could dampen potential investor’s confidence in the sector.

What is the domestic chip industry scenario?

  1. 1. India is an important destination for global semiconductor companies because of its highly skilled talent pool of semiconductor design engineers who make up about 20% of world’s workforce.
  2. About 2000 integrated circuits and chips are designed in India every year.
  3. 3. Global players operating R and D in the country include Intel, Micron, Qualcomm etc.
  4. Among other things, it is aspired to grow at least 20 companies in India scaling a turnover of more than Rs 1500 crores in the next five years.


Higher gestation period implies design firms are not able to attract potential investors and ventures.

Lack of venture capitalists in the private sector focused on semiconductor.

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