Q1. A brief overview of professional background Of Mr. Sudarshan Natu & Mr. Ajit Chigteri, particularly focusing on expertise in this industry?

Sudarshan has more than 40 years of experience in semiconductor design, embedded systems, and technology consulting. He specializes in VLSI design, verification, testing, and IP development. As Co-founder and Managing Director of Nital Computer Systems Pvt. Ltd., he built and led technical teams for global clients. At Harman Connected Services, he served as Vice President, overseeing large-scale product development in embedded systems, IoT, and healthcare technologies.

He is currently on the Executive Committee of SemiX at IIT Bombay, which advances semiconductor research, talent development, and innovation. He also serves on the core committee of MCCIA’s Semiconductor Ecosystem Development Group, helping to develop the ecosystem in Pune, and is active in the Semiconductor Association of Pune.

Ajit also has 40 years of experience in manufacturing, EPC, OEM, and automation industries. He has worked in sectors like automotive, energy, oil and gas, petrochemicals, metals, power plants, cement, and pharmaceuticals. His expertise includes design engineering, presales, project and operations management, and site execution. For the last 15 years, he has held leadership positions and now leads the Semiconductor Ecosystem Development Group at MCCIA.

Q2. How are supply chain disruptions, geopolitical tensions, and reshoring initiatives affecting semiconductor investment and expansion decisions?

Since the COVID-19 pandemic and events like the Russia-Ukraine conflict, the semiconductor supply chain has faced ongoing disruptions. These issues have caused shortages, higher prices, and delivery delays. In response, companies are building redundancies, diversifying suppliers, and increasing inventories. The pandemic also showed the risks of relying too much on certain regions, pushing companies to create more resilient supply chains.

Geopolitical tensions, especially between the U.S. and China, have made the semiconductor sector more complex. Trade wars, tariffs, and export controls have fragmented supply chains and increased costs. Possible U.S. policies in 2025 may raise tariffs further, which could discourage investment in riskier regions. Because of this, companies are using geopolitical risk models in their planning and often delay expansions or choose safer locations.

Reshoring efforts, backed by subsidies like the U.S. CHIPS Act and similar programs in Europe and India, are shaping investment choices. More than $500 billion in private investment has been announced for new fabrication plants and R&D, focusing on reducing risk by moving production closer to home or to allied countries. This approach improves security but also raises upfront costs and could lead to overcapacity. Many companies are now using hybrid models that mix reshoring with offshore partnerships. In India, these trends are driving local expansion to benefit from incentives and manage global risks.

Q3. What are the main demand drivers for semiconductors in 2025 & beyond?

Semiconductor demand in 2025 is expected to grow by 9.5% to 17%, mainly due to artificial intelligence and data centers, which are boosting growth in logic and memory segments. Generative AI needs advanced GPUs and accelerators, with companies like NVIDIA and AMD leading the way. Major tech firms are investing heavily in AI infrastructure, which further increases demand.

Automotive electrification and autonomy are also major drivers, with strong growth in silicon carbide and gallium nitride devices for electric vehicles and advanced driver-assistance systems. Edge AI in industrial, military, and aerospace uses, along with the rollout of 5G and 6G networks, is raising demand for connectivity chips. Consumer electronics, sustainable technology, and high-performance computing also add to overall growth.

Traditional areas like PCs and mobile devices are growing more slowly, and factors like tariffs could impact overall demand. Still, the industry outlook is positive, showing how important semiconductors are to the digital economy.

Q4. What gaps still exist in India’s semiconductor value chain — such as high-purity materials, EPC capability, or skilled talent, and who is stepping in to fill them?

India's semiconductor ecosystem is growing but still has major gaps, especially in upstream areas. Most high-purity materials, like silicon wafers, specialty chemicals, and gases, are imported, which leads to vulnerabilities and higher costs. Engineering, procurement, and construction skills, especially for cleanrooms and fabrication infrastructure, often rely on foreign expertise.

By 2030, India may face a shortage of 250,000 to 350,000 skilled professionals in areas like process engineering and packaging. The current workforce of about 220,000 is not fully industry-ready, and infrastructure issues, such as reliable power and water for fabrication plants, continue. While India is strong in assembly, testing, and packaging, its research, development, and design capabilities are still limited.

Closing these gaps will take coordinated efforts. Government programs like the India Semiconductor Mission and Skill India plan to train 500,000 professionals by 2030 through partnerships and academies. Companies such as InoxGFL are working to meet chemical needs, and Tata Electronics is investing in fabrication plants. Global firms like Lam Research are helping with workforce and tool development. Recent deals at SemiCon India 2025 show a collaborative push for self-reliance.

Q5. How are Indian companies or consortia collaborating with global tech or fab companies for knowledge transfer or joint execution?

Indian companies and consortia are working with international technology and fabrication firms to share knowledge and run joint projects. These partnerships, worth $18 billion across 10 projects, focus on joint ventures, agreements, and licensing.

Tata Electronics has agreements with Bosch for wafer manufacturing and with Synopsys for design tools, supporting the adoption of 28-90nm technology. HCL and Foxconn have formed a joint venture focused on assembly and testing under the India Semiconductor Mission. At SemiCon India 2025, more than 300 firms from 18 countries signed 12 agreements for intellectual property innovation and workforce development.

Global firms are drawn to India's subsidies and market potential. ISRO's work on homegrown processors supports these efforts, and fabless design companies in the Design Linked Incentive Scheme benefit from international partnerships. These collaborations aim to help India reach a $45-50 billion market by 2030 by combining local and global expertise.

Q6. Which types of companies in India (e.g., EPCs, utility providers, automation integrators) are likely to be early beneficiaries of semiconductor infra buildout?

With infrastructure development under ISM 2.0, some Indian companies are set to benefit early. EPC firms like Fabtech are building cleanrooms, with Phase 1 investments totaling about ₹59,000 crore.

Utility providers like InoxGFL, which supply specialty gases, are meeting high-purity needs and getting subsidies. Automation integrators and OSAT specialists such as Kaynes, Syrma SGS, HCL Infosystems, CG Power, and MosChip Tech handle assembly and testing for international clients, which is expected to bring strong margins.

These sectors could create up to 1 million jobs by 2026. However, success will depend on how quickly they can scale operations in the next 1.5 to 2 years and reach high utilization rates.

Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?

For investors looking at this sector, where valuations can be 50-70 times earnings because of AI-driven demand, it's important to check for resilience. A key question for senior management is: How is your company handling geopolitical risks like tariffs or export controls in your supply chain strategies, and what backup plans do you have for talent shortages?

This helps assess how well a company is prepared for industry cycles and supports its long-term success.

In summary, 2025 is a key year for the semiconductor industry. India has a chance to tackle challenges through smart investments, collaboration, and focused initiatives. These steps can help India strengthen its place in the global semiconductor market and support ongoing innovation and economic growth.