India's Semiconductor Demand Set to Surge to 28% by 2026 Amidst AI Revolution
Synopsis
A recent report predicts that India’s semiconductor demand will rise to 28% by 2026, driven by the AI boom. This forecast is nearly in line with the expected global demand of 29%. Key areas of growth include AI chips, custom silicon, and memory-intensive chips.
Key Takeaways
Projected semiconductor demand in India to reach 28% by 2026 .
High demand anticipated for AI chips and custom silicon chips .
Significant confidence in semiconductor innovation from Indian firms.
Emphasis on enhanced security and customization technologies.
Alignment with the global demand forecast of 29% .
New Delhi, Jan 28 (NationPress) The demand for semiconductors in India is projected to soar to 28% by the end of 2026 in the wake of the artificial intelligence (AI) boom, closely aligning with the anticipated global demand of 29%, as reported on Tuesday.
A significant number of downstream organizations foresee a rise in the demand for AI chips, custom silicon chips, and memory-intensive chips over the upcoming year, according to the latest insights from the Capgemini Research Institute (CRI).
Approximately 96% of the surveyed Indian downstream organizations expect an uptick in demand for AI chips or chips optimized for AI applications, compared to 88% globally.
Furthermore, nearly 96% of Indian downstream organizations anticipate a rise in demand for custom silicon chips (custom ASIC), as opposed to 81% of global organizations, as highlighted in the report.
Additionally, 82% of Indian companies expect an increase in demand for memory-intensive chips (HBM, GDDR6), versus 79% globally.
Moreover, 54% of Indian downstream organizations are already incorporating custom silicon chips in their products, almost matching the 56% of global organizations.
Downstream industries refer to the final stages of production and sales, where raw materials are converted into finished goods.
According to the report, 50% of Indian downstream firms regard advancements in AI/ML acceleration as the most significant semiconductor innovation for their industries, while 45% believe that advancements in GPU computing will provide the most value.
The desire for ‘enhanced security’ ranks as the top technology innovation among Indian downstream organizations, with 50% of respondents indicating this preference, followed by 48% selecting ‘the availability of more extensive APIs, SDKs, kits, boards, etc.’, and 46% choosing ‘enhanced customization’.
In addition, 52% of these organizations are confident that the semiconductor industry will continue to innovate at a pace that meets future demands.
