AI Powers Trillion-Dollar Semiconductor Boom: Can India Evolve From Design Leader To Manufacturing Giant? - ETV Bharat

The rapid advancement of artificial intelligence is driving a new wave of growth in the global semiconductor industry. India, with its strong talent pool in chip design and a second-largest design eco... Read original →

The AI compute arms race is forcing global semiconductor manufacturing toward 3nm and below, yet India’s ambition to transition from a design hub to a fabrication powerhouse faces stark technical gaps: no domestic EUV capability and virtually no advanced packaging ecosystem. More critically, the projected 50–60 GW power demand from AI data centers alone strains against India’s entire peak grid capacity, inflating fab operating costs and deterring foreign investment. While TSMC (Taiwan, China) and Samsung lock in EUV capacity through 2027, India’s focus on mature nodes and compound semiconductors—though strategically sound for automotive and RF—won’t capture mainstream AI chip demand. Without closing the power-equipment-talent triangle by late 2026, India risks becoming a peripheral foundry player. The real leverage lies in co-developing localized pilot lines with Applied Materials and fast-tracking GaN/SiC adoption in automotive via ANRF-MeitY partnerships.