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.