Geopolitical changes could be crucial in driving India’s semiconductor aspirations as the US diversifies its chip strategy and imposes trade restrictions to contain China’s dominance. said author Chris Miller. He is known for his book, The Chip Wars: The Battle for the World’s Most Important Technology.
Miller was speaking at the semiconductor industry’s ‘Chip Pe Chacha’ event held at the VLSID International Conference 2025 in Bangalore on Monday. He also highlighted the important role of AI processors in driving innovation, describing AI as the “killer app of this century” even though its potential is yet to be explored.
Geopolitical tensions have fragmented the semiconductor industry, creating separate spheres of influence led by China and other countries, affecting supply chains and market trends. Currently, there is no country in the world that is self-sufficient in semiconductors throughout the supply chain. Everyone depends on someone.
Mr. Miller praised India’s focus on developing design and manufacturing capabilities and strengthening partnerships with global leaders, saying, “India’s aggressive semiconductor policy and investment positions India as a key player.” “I think the broader electronics ecosystem here in Bangalore and Tamil Nadu is exploding.”
In a previous conversation with Satya Gupta, Chairman of the VLSI Association of India and CEO of Epic Foundation, Miller said that the explosive adoption of AI technology will increase the demand for specialized semiconductors such as GPUs, and at the same time, innovations leveraging AI will increase. He pointed out that chip design and manufacturing efficiency have also improved through the process.
A global rush to build manufacturing facilities may create excess capacity for traditional semiconductors, but demand for advanced chips for AI and electric vehicles remains high and shortages persist.
Global competition in semiconductors
The global semiconductor industry is in fierce competition between the United States and China, with tensions rising over technological superiority.
Production of the semiconductors will require contributions from several global companies, including lithography equipment from Netherlands-based semiconductor company ASML, advanced manufacturing from Taiwan, and design expertise from the United States.
This reliance on partnership has resulted in deepening technological cooperation between the United States and India. In recent years, India has pursued policies to promote domestic semiconductor manufacturing and integration, making it an attractive partner for global supply chains.
China is trying to close the gap in advanced technology, but challenges remain, including dependence on imported equipment and a five-year lag with Taiwan’s Taiwan Semiconductor Manufacturing Company (TSMC).
Miller advised prioritizing talent development, saying, “When you invest in people, you’re making a very diversified bet.”
While acknowledging India’s fundamental efforts in manufacturing and packaging, he encouraged exploration of niche areas such as 3D packaging and compound semiconductors for the energy transition. These can give India a competitive edge without requiring huge capital investments in traditional manufacturing, he asserted.
“As AI grows, we need more computers and more memory, to give one example. So our best solution is a 3D representation with two virtual engineers,” he says. added.
vision of india
The Indian semiconductor sector is poised for transformational growth, as highlighted by Satya Gupta at the inauguration of VLSID. The country’s electronics consumption is expected to rise from $200 billion today to $3 trillion by 2047, with semiconductors expected to account for a staggering $810 billion share of this market.
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Mr. Gupta said this is an opportunity to position India as a major player in the world. Mr. Gupta highlighted initiatives such as regional semiconductor chapters across India to decentralize development and foster local innovation.
Initiatives such as the VSIP Internship Program aim to bridge the gap between academia and industry and ensure students are industry-ready. Additionally, our partnerships with global foundries provide academic institutions with access to the cutting-edge 55nm node, giving aspiring engineers hands-on experience.
Hitesh Garg, VP and India MD of NXP Semiconductors also emphasized: “The future growth and innovation of the semiconductor industry relies heavily on strong talent.
pipeline and a thriving startup ecosystem. ”
India’s ambitions extend beyond global markets, with untapped opportunities in infrastructure and logistics. Mr. Gupta called for leveraging advanced technology to modernize domestic industries and further expand the size of the country’s economy.
Energy challenges and AI
As AI continues to evolve, its energy demands have become a critical concern. The event showcased the critical role of VLSI and embedded systems in driving transformative advances across AI/ML, 5G, Internet of Things (IoT), quantum computing, and electric vehicles.
AI applications are being tested at both the network core and edge, with experts warning that the technology’s rapid growth could lead to a 40-fold increase in usage. According to predictions, AI could consume 20% of the world’s electricity by 2030.
This raises pressing questions about sustainability and the cost of operating AI-powered data centers and devices. Currently, the energy cost of AI queries is often overlooked. However, as the use of AI expands, significant financial and environmental challenges will arise.
Miller highlighted the escalation of this crisis during his discussion, saying some economies are already seeing increases in electricity consumption directly related to AI. Despite these concerns, Miller expressed optimism, highlighting the history of computing as a model for achieving greater efficiency.
He emphasized the importance of continuing this trend, focusing on innovations in hardware, software and energy-efficient system design. As market demand increases, so does the pressure to find sustainable solutions.
The rise of AI brings both challenges and opportunities. Balancing energy demand and environmental sustainability will be a key focus over the next decade. This change requires collaboration across industries and geographies to ensure that AI growth remains efficient and accessible.
“I think there are two things that always impress me in talent development: one is technical acumen and two is business acumen,” Miller said, adding that technical acumen and business acumen He called for continued investment in India’s talent pipeline, including both.
