According to a report by Capgemini Research Institute (CRI), the demand for semiconductors in India in the artificial intelligence (AI) era is likely to increase to 28 per cent by the end of 2026, close to the global expected demand of 29 per cent.
The majority of downstream organisations anticipate a growing need for AI chips, custom silicon chips, and memory-intensive chips over the next year.
According to the survey, 96 per cent of Indian downstream organisations foresee increased demand for AI chips designed for AI acceleration, compared to 88 per cent globally. Similarly, 96 per cent expect a rise in demand for custom silicon chips (custom ASIC), while 82 per cent anticipate an increase in memory-intensive chip demand (e.g., HBM, GDDR6), against 81 per cent and 79 per cent of global organisations, respectively.
Currently, 54 per cent of Indian downstream organisations are utilising custom silicon chips in their products, which is nearly equivalent to the 56 per cent seen globally. Downstream industries, which encompass the final stages of product production and sales where raw materials are transformed into finished goods, are significantly influenced by advancements in semiconductor technology.
The report indicates that 50 per cent of Indian downstream firms view advancements in AI/ML acceleration as the most significant semiconductor development for their sectors, while 45 per cent highlight GPU computing advancements as highly valuable. Furthermore, 52 per cent express confidence that the semiconductor industry will continue to innovate at a pace that addresses future needs.
