economictimes.indiatimes.com, Sept. 18, 2024 –
India should focus on building its own chip design companies rather than relying on multinationals to establish manufacturing bases, according to Anirudh Devgan, the CEO of US based software company Cadence Design that works with top global semiconductor and tech firms such as Nvidia, TSMC, Qualcomm, Apple, Tesla, Google, and Meta.
In an interview with the Times of India, Devgan said that many chips are already being designed in India, but for companies like Qualcomm, Broadcom, Nvidia, and Google. "India has great designers, but they are designing for multinationals. There should be more indigenous companies focused on designing chips for the Indian market or even the global market. The talent to create world-class chips exists in India," he said in the paper.
In the interview, Devgan emphasized that India should adopt a top-down approach in its semiconductor strategy.
"India is starting from the bottom up, focusing on manufacturing, asking companies like Micron or TSMC to set up plants here. While this is happening, especially with Micron, it's what I would call a bottom-up approach. However, a top-down approach can be even more effective," he explained.
Devgan said India should prioritise building product and design companies instead of solely seeking foreign manufacturing investments.
"What India needs is control over product companies, not just manufacturing. The Indian market is vast, and instead of relying on multinationals, the focus should be on building homegrown product and design companies. The government, through policy support, can help set up companies that design chips for industries like automotive, smartphones, and AI. As these companies grow, they can eventually set up their own manufacturing in India. This model has worked in other countries," he added.