India is experiencing a 'once-in-a-generation demand window' in the semiconductor market, according to Infosys Senior Vice President Vikram Meghal. Speaking at SEMICON India 2026, Meghal highlighted that the traditional semiconductor pipeline is breaking amid massive shifts driven by artificial intelligence, geopolitical supply chain challenges, and a transition from Moore's Law towards system-level scaling. As reported by The Economic Times, Meghal emphasized that the industry is witnessing a fundamental shift where workload is now driving chip design, rather than the traditional approach of chip driving workload requirements.
The semiconductor industry faces unprecedented growth opportunities with AI data centre spend projected to reach USD 6.7 trillion in the coming years. As reported by The Economic Times, Meghal emphasized that 50 per cent of this AI spending will be allocated to compute, memory, and networking chips. The industry is witnessing a shift where workload is now driving chip design, rather than the traditional approach of chip driving workload requirements, creating significant opportunities for semiconductor companies.
Meghal identified three major demand fronts for India's semiconductor sector: 'Made for India', 'Engineered in India', and 'Invent in India'. Under the 'Made for India' category, while mobile phone localization has begun, the market is expected to expand multifold in the next four to five years, with domestic content currently at only 23 per cent. The 'Engineered in India' front shows ER&D spending expected to grow by 1.8 times from current levels, building on the country's established capability of delivering engineering at scale.
According to Meghal's analysis, the highest value capture lies in 'Invent in India', driven by the global market for custom chips which is expected to surge as companies design application-specific silicon. As reported by The Economic Times, he stressed that India has been capturing only engineered-in-India value so far, but now has potential for global products to capture innovation value and start inventing in India itself. This represents a significant shift from traditional manufacturing to innovation-driven semiconductor development, where India can do justice to decades of investment in building the ecosystem.
Meghal urged the industry to develop 'strategic patience' for making large long-term bets, emphasizing the need for a product mindset rather than just engineering focus. He highlighted the importance of regulatory compliance and working towards owning the entire technology stack rather than focusing solely on silicon manufacturing. As reported by The Economic Times, this comprehensive approach aligns with India's goal of transitioning from 'Engineered in India' to 'Invent in India' by taking ownership of complete systems and products, building on the country's established engineering capabilities.
