Hyderabad Set to Lead India’s Semiconductor Design Push
HYDERABAD: Hyderabad is emerging as India’s leading semiconductor design hub, according to Niti Aayog’s newly released Future of India’s Semiconductor Industry road map. The strategy aims to build a semiconductor ecosystem worth $120 billion-$150 billion by 2035.
The 10-year road map, unveiled by Niti Aayog’s Frontier Tech Hub on Friday, places semiconductor design talent development among its five key priorities. Hyderabad already hosts seven of the world’s top 10 semiconductor firms. The city has also surpassed Bengaluru in chip design hiring, strengthening its position in India’s semiconductor ambitions.
Strong Talent Base Driving Growth
Hyderabad has around 9,300 semiconductor professionals, and the workforce is growing by about 4% every year. The report highlights the city’s talent pool as a major asset in India’s transition from a semiconductor consumer to a global chip design and manufacturing player.
“This road map validates what we have seen on the ground over the past two years,” said Dr Rajesh Reddy, a Hyderabad-based semiconductor industry analyst and former VLSI architect.
“Hyderabad’s strength is not just the availability of talent. The city also offers highly specialised expertise. Engineers here already work on advanced chip verification, AI accelerators and system-on-chip designs for global clients,” he said.
Key Role in Developing Semiconductor IPs
Dr Reddy believes Hyderabad can make a significant contribution to Niti Aayog’s goal of creating more than 100 advanced semiconductor design intellectual properties (IPs) by 2035.
“When Niti Aayog talks about developing over 100 advanced semiconductor design IPs, Hyderabad can realistically contribute 30-40% of that target because the ecosystem is already mature,” he said.
Opportunities Beyond Chip Fabrication
According to Dr Reddy, the semiconductor sector offers growth opportunities far beyond fabrication plants.
“Many people associate semiconductor manufacturing only with fabs. However, advanced packaging, chiplet design and compound semiconductors are driving major growth. Hyderabad already has strengths in all three segments,” he said.
He also welcomed the proposed common facility centre at Knowledge City. The facility would help start-ups and mid-sized design firms gain access to costly prototyping infrastructure.
“This is exactly what the road map promotes. It focuses on deepening the ecosystem rather than merely creating one,” he added.
Hyderabad and Bengaluru to Anchor Growth
The road map’s target of creating more than 100 advanced semiconductor design IPs by 2035 will rely heavily on Hyderabad and Bengaluru. Together, the two cities account for nearly two-thirds of India’s semiconductor design capabilities.
Industry experts say Hyderabad benefits from a unique combination of information technology, semiconductors, artificial intelligence and life sciences within a single innovation cluster. Telangana’s plans to expand infrastructure over the next decade are expected to further strengthen the city’s position.
Focus on Emerging Technologies
The road map gives priority to “more-than-Moore” technologies and compound semiconductors instead of conventional advanced fabrication. Hyderabad already has strong capabilities in embedded systems and chip verification, making it well placed to benefit from this shift.
