AI boom's high salaries stifling Indian chip-design startups: TDK Ventures - Business Standard

The rapid growth of artificial intelligence (AI) has led global tech companies to offer high salaries and stock options, which are acting as a 'golden handcuff' for Indian chip-design talent, deterrin... Read original →

The surge in AI-driven tech compensation globally has created a talent lock-in effect in India, deterring chip designers from launching deep-tech ventures. This trend undermines startup funding appeal and accelerates talent outflow to regions like Taiwan, China and Hong Kong, China. Upstream IP and EDA tool dependencies, combined with midstream design gaps, hinder ecosystem development. Despite government initiatives, lack of systemic support leaves venture capital focused on short-term returns. International players like TDK Ventures are making long-term plays, but India’s tech ecosystem remains underdeveloped. Over the next 12-24 months, without structural policy reforms, India risks becoming a permanent talent drain for semiconductors, further consolidating global supply chains in Taiwan, China and Hong Kong, China.