India Must Advance Chip Design As US Lifts Restrictions On China

India must urgently enhance its domestic chip design capabilities to counter intensifying competition from China, industry experts have cautioned, as reported by ET.

The call follows the US decision to lift export restrictions on Electronic Design Automation (EDA) software to Chinese firms, enabling companies like Cadence, Siemens EDA, and Synopsys to resume full operations with Chinese entities.

US Policy Shift

The reversal of earlier curbs allows Chinese firms to access advanced EDA tools, potentially accelerating their chip research and manufacturing. This development strengthens China’s semiconductor industry, posing challenges for India’s EDA sector and broader electronics market.

The strengthened Chinese industry could reshape global competition, impacting India’s efforts to attract investment in chip design and packaging. 

Experts note that companies eyeing India as part of their ‘China Plus One’ strategy may now reassess investment timelines due to China’s renewed access to EDA software.

India’s Semiconductor Ambitions

India currently holds 20 per cent of the world’s semiconductor design engineers and focuses on mature nodes meeting significant global demand. 

The country aims to build an end-to-end semiconductor value chain, but its reliance on foreign EDA tools highlights the need for domestic software development.

Analysts urge India to invest heavily in research, intellectual property, and advanced skills to develop its own chip design software. Such efforts are vital for resilience and leadership in next-generation technologies like artificial intelligence and high-performance computing.

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