How are GCCs powering next wave of semiconductor innovation through engineering talent?

As you probably already know, semiconductors have become the backbone of modern technology. Countries from China to the United States and other global powers  are all racing to develop their respective semiconductor capabilities.

According to the India Electronics and Semiconductor Association (IESA) report, the semiconductor market in India is projected to increase from Rs. 4,50,164 crore (US$ 52 billion) in 2024 to Rs. 8,95,134 crore (US$ 103.4 billion) by 2030. This huge growth makes India a very attractive place to set up Global Capability Centers (GCCs) in the semiconductor industry.

The sectors driving this growth—like mobile devices, IT, handsets, and more—are expanding rapidly. Because of this, many countries are looking to invest in semiconductor GCCs in India. When we talk about the next wave of semiconductor innovation, India stands out as one of the best places to set up a GCC. Why?

There are many reasons, but the biggest one is India’s advanced engineering talent pool. Indian engineers are breaking records wherever they go, though the world hasn’t fully recognized their potential yet.

Another big factor is India’s strong collaboration between GCCs and top educational institutions. India is known for its effective industry-academia partnerships. For example, the Bharat Semiconductor Research Centre was established in partnership with the Ministry of Electronics and Information Technology to push forward semiconductor research.

The Hypervelocity Expansion Tunnel Test Facility (S2) was developed to reproduce flight speeds from Mach 8 to 29 and to support India's hypersonic technology endeavours. Top institutes in the country such as the IITs, IISc, and IIITs are heavily engaged in research partnerships with GCCs, creating a regular pipeline of talent and ideas.

The third major strength for India is R&D. Companies have been investing heavily into R&D for advanced semiconductor solutions for newer technologies such as AI and IoT. This investment into R&D has generated a number of patent filings during the past few years.

Over 33 semiconductor patents granted to GCCs in India have come through in 2023 alone! This further confirms India's growing capabilities in semiconductor innovation.

Nevertheless, even though the prospects are excellent, things do not always look bright. Hiring activity has slowed somewhat and geopolitical factors continue to shape our industry. 

Another reason for this slowdown is the changing role of GCCs. Earlier, GCCs were mainly seen as cost centers, but now they’re becoming innovation centers. This global shift means companies expect their GCCs to lead in design and innovation, not just handle routine tasks.

With India’s strong engineering base and government support for research and development, the industry is now looking for hubs that can innovate across design modules and firmware. One area where India truly shines is Electronic Design Automation (EDA)—the software that powers semiconductor design.

While other low-cost regions know how to operate EDA tools for designing, simulating, verifying, and testing chips, India is taking it a step further. We see Indian engineers contributing to enhance and develop EDA tools at R&D centers in companies like Cadence and Synopsys.  So, India will not only be a consumer of these tools, it is becoming central to the global innovation engine behind them. 

India’s policy-driven push: Tailwind for semiconductor GCCs
Another big reason India stands out is the strong government backing behind its semiconductor ambitions. The Indian government isn’t just cheering from the sidelines — it’s actively stepping in to build a world-class semiconductor ecosystem.

Take the Semicon India Programme, for example. It offers financial support of up to 50% for companies setting up semiconductor fabs, packaging (ATMP) units, or design-led startups. That’s a massive boost for any company looking to scale quickly and smartly.

On top of that, India has rolled out schemes like the Design-Linked Incentive (DLI) and PLI for electronics manufacturing, which together cover nearly the entire semiconductor value chain — from chip design all the way to final assembly and testing.

What this really means for global companies is simple: lower risks, faster setup, and long-term stability. And perhaps more importantly, setting up a semiconductor GCC in India now aligns not just with business goals, but also with India’s national priorities and digital future. That kind of synergy — backed by policy and scale — is hard to find elsewhere.

-- Manoj Joshi, CEO, SA Technologies (SAT).