INDIA URGED TO BUILD DOMESTIC CHIP DESIGN CHAMPIONS AMID GLOBAL EXPANSION

By Rohan Verma · 2026-11-12

India is being challenged to look beyond traditional semiconductor manufacturing and focus heavily on cultivating globally competitive chip-design companies. Analysts note that achieving this next strategic leap requires strong domestic demand, continuous innovation, and targeted government support. As the broader technology sector adapts to rapid shifts in artificial intelligence and hardware requirements, professionals across the country are watching how local infrastructure and policy will evolve to support domestic ownership in high-tech markets.

THE GLOBAL SEMICONDUCTOR LANDSCAPE AND MARKET PROJECTIONS

Worldwide demand for advanced chips continues to accelerate at an extraordinary pace, driven primarily by artificial intelligence computing, advanced nodes, and automotive electronics. Market data highlights that the global semiconductor market size was valued at USD 758.13 billion in 2025 and is projected to surge to USD 2,776.21 billion by 2035, expanding at a compound annual growth rate of 13.86% over the 2026-2035 period. Industry tracking also shows that sales are on course to reach a record USD 697 billion following earlier recovery phases from pandemic-era supply chain disruptions.

STRATEGIC SHIFTS IN INTERNATIONAL CHIP PRODUCTION

Major international players are actively reshaping the global supply chain through high-stakes investments and strategic partnerships. For instance, TSMC recently made a USD 1.5 billion investment targeting artificial intelligence software companies like OpenAI and Anthropic alongside the broader semiconductor supply chain. Meanwhile, technology giants are realigning manufacturing partnerships, as seen when Google discussed plans with Samsung Electronics to manufacture parts of its next-generation artificial intelligence chip. These developments underscore how artificial intelligence software demands are directly dictating physical hardware production strategies worldwide.

GROWING EXPOSURE ACROSS THE INDIAN MARKET

India's local semiconductor ecosystem is expanding rapidly to meet rising demands originating from artificial intelligence, electric vehicles, and cloud computing workloads. Several listed domestic enterprises already maintain significant semiconductor exposure alongside large order books. Industry observers emphasize that capitalizing on this momentum requires India to transition from a pure fabrication hub into an innovator capable of owning the intellectual property behind next-generation silicon, similar to how global leaders capture high-value design segments.

HOW EMPLOYEES CAN PREPARE

Upskill in specialized fields such as Very Large Scale Integration design, chip architecture, and embedded systems to match the technical needs of expanding local order books.
Monitor developments from domestic firms with semiconductor exposure by exploring [Browse Companies](/companies) to target organizations investing heavily in hardware engineering.
Regularly update your technical resume with hardware-software co-design projects using tools like [Resume Templates](/resume-tips) to stand out to hiring managers.
Keep track of evolving compensation trends across the hardware and software engineering sectors by reviewing our latest [Salary Guide](/salary-guide) before negotiating your next role.

Frequently asked questions

What is the projected size of the global semiconductor market by 2035?

The global semiconductor market is projected to reach USD 2,776.21 billion by 2035, growing at a compound annual growth rate of 13.86% from 2026 onward.

What specific market shift is the [2026 global semiconductor industry outlook: Delloite](https://www.dqindia.com/esdm/2026-global-semiconductor-industry-outlook-delloite-11724487) highlighting for the year?

The outlook notes that while chip sales continue to soar, industry focus may shift toward risk mitigation for demand correction, integrated system architecture, and a balanced investment approach.

Why is building Indian-owned chip-design companies emphasized for the country?

Experts argue that moving beyond basic manufacturing to build local design champions enables India to capture high-value intellectual property, backed by domestic demand and strategic government support.

Which global technology and manufacturing companies are currently altering supply chain agreements?

Google has discussed plans with Samsung Electronics to manufacture part of its next-generation artificial intelligence chip, while TSMC has committed a USD 1.5 billion investment touching AI software providers and supply chains.