The global semiconductor industry is at a pivotal inflection point — driven by geopolitical shifts, rising digital consumption, and AI-led innovation. While much attention has been placed on fabs and foundries, a less visible but highly strategic story is unfolding in India: the rise of Global Capability Centers (GCCs) specializing in semiconductor and chip design.

India is not just participating in the semiconductor race; it’s helping architect the global blueprint. With over 95 semiconductor GCCs and counting, India is quickly becoming the brain behind the chip — designing, testing, and validating the very logic that powers smartphones, data centers, autonomous vehicles, and AI workloads.

From Outsourcing to Ownership: A Shift in the Semiconductor Value Chain

For decades, India’s role in the semiconductor ecosystem was viewed through the lens of outsourced services. But that narrative has shifted decisively. Today’s semiconductor GCCs operate as integrated extensions of their parent companies, working on IP-level chip design, validation frameworks, embedded software, and advanced R&D.

Design is where the value lies. Nearly 70% of the global semiconductor industry’s value creation sits in design, architecture, and testing. And India’s engineering talent — a powerful mix of electrical engineers, VLSI specialists, and software architects — is uniquely positioned to command this value.

Companies like Intel, Qualcomm, AMD, Micron, NXP, and Texas Instruments have long invested in India’s design ecosystem. But the last five years have seen a dramatic acceleration. Bengaluru and Hyderabad now house some of the largest chip design centers outside the U.S., with several organizations consolidating design, system-on-chip (SoC) engineering, and AI inference capabilities under one roof.

Why Global Tech and Semi Giants Are Betting on India

Several tailwinds are contributing to this surge in semiconductor GCCs:

Engineering Talent Density
India produces more than 300,000 electronics and computer engineers every year. Institutes like IITs and IIITs are strengthening their VLSI and semiconductor design curricula, while specialized chip design programs are gaining traction across universities.

Global De-Risking and Strategic Autonomy
As global tensions reshape semiconductor supply chains, companies are de-risking their R&D and design operations by expanding beyond traditional bases in the U.S., Taiwan, and South Korea. India offers geopolitical neutrality, IP protection frameworks, and engineering maturity — making it a compelling choice.

Government Backing
The Government of India’s Semiconductor Mission and Design Linked Incentive (DLI) Scheme offers policy-level encouragement for chip design firms and startups. These schemes, combined with the recent approval of $15.2 billion in chipmaking proposals, reflect India’s ambition to own a larger share of the semiconductor value chain (Source: Hindustan Times).

Industry-Academia Collaborations
New-age chip design startups are emerging with faculty-led innovation from institutions like IISc and IIT-Madras. This linkage is critical for driving advanced R&D in areas like 5G SoCs, AI accelerators, and automotive-grade chipsets.

Case in Point: How GCCs Are Making an Impact

• Qualcomm runs one of its largest R&D centers in Hyderabad, contributing to 5G modem development, AI workloads, and automotive SoCs (Source: ET Telecom).

• AMD has consolidated its presence in India by including CPU and GPU design, particularly for AI inference workloads.

• NXP Semiconductors, with over 3,000 employees in India, recently announced an investment of over $1 billion to double its R&D capabilities, focusing on secure connectivity, automotive chips, and edge computing (Source: Reuters).

• Synopsys and Cadence — the design tool giants — have expanded their India teams to support global EDA innovation, design verification, and foundry collaborations.

Beyond Design: Toward Full-Stack Semiconductor GCCs

While chip design is the current crown jewel, the scope of semiconductor GCCs is evolving.

• EDA Development: India-based teams are creating Electronic Design Automation (EDA) tools that help design chips faster and with fewer errors.

• Pre-Silicon Validation: GCCs are contributing significantly to simulation, verification, and virtual prototyping.

• Embedded Software & Firmware: Engineers are developing the control software that sits on chips in everything from wearables to EVs.

• AI & ML for Chip Design: Some GCCs are using machine learning to automate layout and design processes — a nascent but promising area.

What’s Next: From Design to Fabrication?

While India’s semiconductor ecosystem is clearly excelling in design, the next leap is manufacturing. With fabs approved in Gujarat and Assam, and players like Tata Electronics and L&T Semiconductor Technologies exploring full-stack vertical integration, the possibility of “Designed and Made in India” chips may soon become real.

Still, the design-led model offers a fast-track to value creation. In a world where every industry is becoming a semiconductor customer — from agriculture to aviation — chip design capabilities offer India immense strategic leverage.

What GCC Leaders Should Do Next

For GCC site heads and global semiconductor leaders, the opportunity is threefold:

• Invest in Ecosystem Building: Collaborate with academia, incubators, and state governments to develop chip design talent.

• Anchor Global Mandates in India: Move beyond cost arbitrage and empower India centers with global product ownership.

• Create Thought Leadership: Position India not just as a delivery location but as a strategic design HQ through whitepapers, patents, and platform development.

The future of semiconductors may be contested in fabs and foundries, but it will be imagined in design labs. India’s semiconductor GCCs are no longer just participants in this story — they are shaping its next chapter. And as the demand for high-performance, energy-efficient, and AI-optimized chips grows, so too will the strategic weight of India’s role in the global silicon race.