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India’s semiconductor ambitions are increasingly being supported by Global Capability Centres (GCCs), which are evolving from traditional support units into advanced engineering and innovation hubs. These centres are now involved in chip design, embedded systems, silicon verification, AI hardware research, and electronic design automation. Global companies across automotive, telecom, aerospace, and tech sectors are expanding semiconductor-linked operations in India through GCCs. The trend is also influenced by global supply chain diversification and geopolitical shifts. This shift is expected to strengthen India’s position in semiconductor design, research, and deep-tech development over the coming years.
India’s semiconductor ambitions are no longer limited to manufacturing incentives or policy announcements. While discussions have largely focused on fabrication units, government support, and supply chain diversification, Global Capability Centres (GCCs) are now emerging as an important part of this broader ecosystem. Advertisement
GCCs, which were earlier seen mainly as offshore support centres for multinational companies, are gradually transforming into strategic hubs for semiconductor-related work. Their role now extends into chip design, embedded systems, electronic design automation, AI hardware research, and next-generation technology development. These developments are positioning GCCs as a strong pillar in India’s semiconductor growth journey.
In recent years, several global companies across sectors such as automobiles, telecom, industrial electronics, consumer technology, aerospace, and AI hardware have expanded their presence in India. Many of these centres are no longer restricted to support functions. Instead, they are increasingly involved in advanced work including system-on-chip (SoC) design, firmware development, hardware validation, silicon verification, and edge computing solutions.
A major advantage supporting this shift is India’s large pool of skilled engineers. The country has built a strong base in chip design and embedded systems over the years, supported by its established IT and electronics ecosystem. With GCCs expanding their semiconductor focus, more specialised teams are being developed to support global product lifecycles. In several organisations, engineering decisions that were earlier handled at global headquarters are now being decentralised and moved to GCCs in India.
This transformation is also closely connected to global geopolitical and economic changes. Semiconductor companies worldwide are reassessing their supply chains and reducing dependence on concentrated manufacturing hubs. As a result, India is being seen not only as a potential manufacturing destination but also as an emerging innovation centre. GCCs allow global firms to build semiconductor capabilities in India without immediate investment in fabrication facilities.
Artificial intelligence is further accelerating this shift. As demand grows for AI-enabled products, there is a rising need for advanced chip architectures, edge AI processors, data centre optimisation, and intelligent hardware systems. GCCs in India are increasingly contributing to these areas, including AI acceleration, automotive electronics, industrial automation, and Internet of Things platforms.
Mr. Alouk Kumar, Founder and Chief Executive Officer of Inductus Group, was quoted as saying that GCCs are expected to evolve into major innovation centres for semiconductor design, embedded computing, AI hardware, and engineering. He added that as international companies shift their research and development as well as engineering operations to India, GCCs will play a defining role in establishing the country as a semiconductor and deep-tech powerhouse.
The expansion of semiconductor-focused GCCs is also influencing education and research in India. Demand for specialised courses in VLSI engineering, embedded systems, chip architecture, and hardware-based AI is increasing. This shift is also supporting the growth of start-ups and strengthening the deep-tech entrepreneurial ecosystem in the country.
GCCs are also acting as a bridge between policy direction and corporate execution. While government efforts focus on building infrastructure and enabling policy support, multinational GCCs are contributing operational expertise, engineering capabilities, and global research standards.
However, several challenges remain. India still faces limitations in semiconductor fabrication infrastructure, ecosystem depth, and large-scale research commercialisation. Additionally, the demand for highly specialised talent is expected to intensify further as the sector expands. Addressing these gaps will require stronger collaboration between government bodies, academic institutions, private companies, and GCCs.
Even with these challenges, the overall direction of the industry appears steady. GCCs are gradually moving beyond support roles and becoming active contributors to semiconductor innovation and electronics development. As India continues to strengthen its position in global technology value chains, GCCs are likely to play a central role in shaping its semiconductor future.
Over the next decade, India’s progress in semiconductors may be defined not only by fabrication facilities but also by engineering centres, AI research labs, and product development teams operating within its expanding GCC ecosystem.
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