The Chip Race Intensifies

India must accelerate its domestic chip design capabilities as the US decision to lift Electronic Design Automation (EDA) software export restrictions to China heightens competition, experts warn.

Ruchir Dixit, chairperson of the India Electronics & Semiconductor Association, highlights the potential for increased competitive dynamics across India's electronics and semiconductor industry due to China's strengthened capabilities.

Global Semiconductor Industry at a Crossroads

The reversal of Trump-era curbs enables major EDA companies to fully resume operations with Chinese entities, potentially accelerating China's R&D and manufacturing efforts in the semiconductor sector.

Biswajeet Mahapatra, principal analyst at Forrester, points out that this development could intensify the global race for market share and foreign investment, particularly in design and packaging where India is making progress.

India's Strategic Response

Kunal Chaudhary from EY India stresses the urgency for India to move faster on chip design and develop its own chip design software to build resilience and lead in semiconductor innovation.

With India accounting for 20% of the world’s semiconductor design engineers, the country is poised to play a vital role in advanced node design, but targeted investment in R&D and skill development is crucial.

Looking Ahead

While the immediate impact on Indian firms may be limited, the US move signals a more competitive environment, urging India to strengthen its domestic capabilities and secure its place in the global semiconductor industry.