Artificial Intelligence meets silicon: Can AI-enabled chips tackle India’s semiconductor challenges?

By Sudeep Shivalli, Regional Senior Director, Synopsys India

India has made its ambitions clear when it comes to semiconductors. The government is rolling out generous incentives, demand for electronics is booming, and our engineering workforce is world-renowned. Still, anyone who’s spent time in the semiconductor industry knows that taking a chip from design to fabrication is incredibly complicated and expensive. A state-of-the-art AI chip today contains hundreds of billions of transistors. The design and manufacturing process for advanced chips is so intricate that it requires a highly specialized global supply chain and massive R&D investments. Not to mention, the pressure to bring new chips to market faster is only increasing, making semiconductor innovation a daunting prospect for many. However, technology innovation around artificial intelligence is emerging as an on-ramp for new entrants into semiconductors.

India’s Turning Point
Right now, India is at a crucial moment in its chip journey. The local electronics market is expected to grow at a 15% CAGR from $54 billion to $108 billion by 2030, but most of those chips will need to be imported. Schemes like the Production Linked Incentive (PLI) and Design Linked Incentive (DLI) are laying the groundwork for a homegrown industry, which is a solid start. These incentives are created to reduce some barriers, but it takes more than incentives to build real momentum in building products based on market needs. It may be a slow start, but the momentum created by a few start-ups doing innovative work is encouraging.

India already supplies about 20% of the world’s semiconductor design brainpower, which is huge. The real test is turning some percentage of this talent toward building products, developing expertise in handling semiconductor equipment, managing manufacturing supply lines, device and process modeling. Building fabs, mastering
production, and going toe-to-toe with global players don’t happen overnight, but we have an opportunity to adapt and learn to use advanced AI-enabled methods as a springboard.

Here’s where AI comes in. With automation and AI-powered workflows, our engineers can speed up design, boost yields, and make better chips, setting the stage for a smarter, more resilient semiconductor industry. Momentum’s picking up. The government’s ₹76,000 crore semiconductor mission, new projects from Tata Electronics, Micron, and others are further advancing India’s infrastructure and know-how. When you mix that with deep engineering talent and AI capabilities that can combat complexity and supercharge innovation, India can not only catch up, but also emerge as a leader in the era of smart chipmaking.

Building Smarter: AI Is Changing Chip Design from the Inside
To realize its vision for a thriving semiconductor industry, India needs not just more chips, but smarter and faster ways to design them. Traditionally, chip design has been a labor-intensive process, often taking engineering teams six to twelve months to move from initial concept to tape-out. The challenge is magnified by growing chip
complexity—today’s leading-edge AI chips pack in over 50 billion transistors, demanding precision and optimization that push manual methods to their limits.

Artificial intelligence is now rewriting the rules for semiconductor design, using deep reinforcement learning to autonomously navigate vast design spaces, evaluating billions of layout, timing, and power configurations. In one recent case, a major global semiconductor company reported that AI-driven design capabilities reduced their design cycle by 60%, taking a process that typically took months down to just a few weeks. For Indian engineering teams, this means faster turnaround, the ability to take on more complex projects, and a sharper competitive edge.

The productivity gains are not just theoretical. AI-driven chip design translates directly into cost savings, higher manufacturing yields, and the ability to deliver innovative products on aggressive timelines—key advantages for Indian companies looking to establish themselves as global players.

AI-driven design is also lowering the barrier to entry for semiconductor design. In the past, only large multinational companies could afford the extensive resources needed for cutting-edge chip design. Today, Indian startups and mid-sized firms can leverage AI- powered tools to compete at the highest level. For example, Synopsys reports that even less-experienced engineers can achieve expert-level results with AI guidance, accelerating skill development and reducing barriers to entry.

Agentic AI technologies are the next evolution. These intelligent agents won’t just automate tasks—they will proactively manage design flows, suggest optimizations, and adapt to changing specifications in real time. For India, these capabilities align perfectly with the government’s vision for semiconductor self-reliance and innovation. As new fabs and design centers open across the country, the ability to harness AI for fab modeling, product design and
verification, and handling advanced packaging will be critical in scaling up quickly and efficiently.

Looking Ahead
India’s semiconductor story isn’t just about how many factories or chips it churns out.

What really matters is how smart we get about innovation. AI gives us a real shot to leap ahead, to design, test, and build chips in ways that used to be impossible.

With the right talent, forward-thinking policies, and a focus on smart AI-driven design, India has a genuine chance to shape the future of semiconductors. This is where people and AI team up, not just to make better chips, but to build better industries for the long haul.