By Anjali Sharma
NEW YORK – According to a report issued by Moody’s on Wednesday the demand for semiconductors in India in the artificial intelligence era is to increase to 28% by the end of 2026, close to the global expected demand of 29%.
The report by the Capgemini Research Institute said that majority of downstream organizations anticipate increased demand for AI chips, custom silicon chips, and memory-intensive chips over the next 12 months.
It said 96 per cent of surveyed Indian downstream organizations are expecting an increase in demand for AI chips/chips designed for AI acceleration, as compared to 88 per cent global organizations.
The report indicated that 96% of Indian downstream organizations are expected an increase in demand for custom silicon chips as compared to 81 per cent global organizations.
It added that 82 per cent of Indian firms are expecting an increase in demand for memory-intensive chips (HBM, GDDR6) as compared to 79 per cent global organizations.
The report said 54 per cent of Indian downstream organizations are already using custom silicon chips in their products, nearly at par with 56 per cent global organizations.
Downstream industries are the final stages of production and sale of goods, where raw materials are refined into finished products.
According to the report, 50 per cent of the Indian downstream firms believe that advancements in AI/ML acceleration is the most relevant semiconductor advancement for downstream industries, while 45 per cent of them say that it is advancements in GPU computing that can bring the most value.
It noted that enhanced security’ is the top-ranked technology innovations desired by Indian downstream organizations, with 50 per cent respondents stating this, followed by 48 per cent of Indian firms selecting the ‘availability of more comprehensive APIs, SDKs, kits, boards, etc.’, and 46 per cent selecting ‘enhanced customization’.
Over 52% are confident that the semiconductor industry will continue to innovate at a pace that meets the future needs.
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