Capgemini Research Institute (CRI) stated that India’s semiconductor demand is poised to reach 28 per cent by the end of 2026, closely aligning with the global projection of 29 per cent.  The report highlights that the majority of downstream organisations in India anticipate a significant rise in the demand for AI chips, custom silicon chips, and memory-intensive chips over the next year. Remarkably, 96 per cent of surveyed Indian organisations expect an increase in demand for AI chips designed for AI acceleration, compared to 88 per cent globally.

Custom Silicon Chips Gain Momentum

In addition, the demand for custom silicon chips, such as custom ASICs, is expected to surge among Indian firms, with 96 per cent forecasting growth, significantly outpacing the global figure of 81 per cent. The report also noted that 82 per cent of Indian companies anticipate a growing need for memory-intensive chips, such as HBM and GDDR6, slightly surpassing the global expectation of 79 per cent. 

Adoption of Custom Silicon Chips

Currently, 54 per cent of Indian downstream organisations are already incorporating custom silicon chips into their products, nearly matching the global adoption rate of 56 per cent. This surge in demand reflects India’s growing prominence in the semiconductor industry, particularly as AI technologies continue to drive innovation and transformation across sectors.