India attracts 30% of global capability centers in semiconductor industry in 4Q23

Jingyue Hsiao, DIGITIMES Asia, Taipei 0

Credit: AFP

As India strives to develop its semiconductor ecosystem, international chip companies are establishing global capability centers in the country to harness local talent.

According to the Economic Times and Times of India, the National Association of Software and Service Companies (NASSCOM) and Zinnov released an analysis of the trend of global capability centers (GCC) for the fourth quarter of 2023. The report shows that during the quarter, ten companies set up their GCCs in India, with three of them in the semiconductor area, including US-based network-on-chip developer Signature IP, EdgeCortix, a Japan-based fabless semiconductor firm focused on energy-efficient AI processing, and Taiwan-based silicon IP provider M31 Technology.

According to the Economic Times, over two-thirds of India's GCCs in the semiconductor industry are located in Bengaluru and Hyderabad. Among the ten new GCCs set up in India in the fourth quarter of 2023, half of them are based in the US.

GCCs are offshore branches created by multinational firms to execute diverse strategic tasks, capitalizing on specialized skills, cost advantages, and operational streamlining across global sites. The types of GCCs include shared service centers, R&D centers, knowledge centers, innovation centers, and customer service centers. According to NASSCOM, India accounts for over 45% of multinationals' GCCs outside their home country.

A Deloitte study indicated that India hosts over 1,600 GCCs, foreseeing a market worth $100 billion by 2030. The projection suggests 2,500 GCCs nationwide, engaging approximately 4.5 million workers, reports PTI.

In January 2024, Qualcomm India announced an investment of INR1.77 billion (US$21.39 million) in setting up a design center in Chennai. In November 2023, AMD inaugurated its largest global design center in Bengaluru.

Source: NASSCOM, March 2024

Source: NASSCOM, March 2024