Weaving chip magic into tomorrow’s digital fabric

The semiconductor industry is transforming the global communications landscape, especially with the deployment of 5G technology. These chips provide the essential foundation for the functionality of high-speed networks, powering devices, and infrastructure that enable faster data transfer, reduced latency, and improved reliability. They play a pivotal role in advancing 5G networks and are increasingly shaping the future of emerging technologies beyond 5G.

Semiconductors: The Backbone of 5G Networks

Semiconductor chips are the foundation of 5G networks, enabling seamless data transmission, processing, and storage of massive data at unprecedented speeds. Key chip types include System-on-Chips (SoCs), Radio Frequency Integrated Circuits (RFICs), Application-Specific Integrated Circuits, and power management chips. These components collectively support 5G’s key capabilities, such as faster speeds, efficient spectrum utilisation, and reduced latency.

Rural connectivity remains a priority, and chipmakers are developing solutions that optimise power consumption for areas with limited infrastructure.

RFICs enhance connectivity by enabling devices to operate across multiple frequency bands, ensuring robust and reliable communication. SoCs integrate these functionalities with graphics processing, memory, and Artificial Intelligence (AI) capabilities, creating compact and cost-effective solutions for modern devices. As India’s 5G rollout accelerates, the demand for these advanced chips is projected to grow rapidly, with analysts estimating that the country could reach 900 million 5G subscribers by 2030. This growth is driven by increasing smartphone adoption and expanding industrial applications.

Advances in Chip Technology Driving 5G

The push for 5G has driven significant advancements in semiconductor manufacturing. Shrinking process nodes, such as 5nm and 3nm technologies, have enabled manufacturers to pack more transistors into smaller spaces. This improves energy efficiency and computational power, which is essential for supporting dense networks and devices.

For 6G, these chips must support terahertz frequencies and advanced beamforming techniques, which improve signal precision and energy efficiency.

Leading companies, including Qualcomm and MediaTek, are designing 5G chipsets tailored to diverse applications. MediaTek’s Dimensity series targets mid-range smartphones, while Qualcomm’s Snapdragon platforms power high-performance devices. These innovations are making 5G devices more accessible to Indian consumers, who prioritise affordability and reliability.

Additionally, semiconductor innovation is critical to addressing India’s unique 5G challenges. Rural connectivity remains a priority, and chipmakers are developing solutions that optimise power consumption for areas with limited infrastructure. These tailored designs ensure widespread 5G adoption, aligning with government initiatives to bridge the digital divide.

Economic Impact and

Government Initiatives

Semiconductors play a key role in India’s economic strategy. The government’s Production-Linked Incentive scheme, launched in 2021, aims to boost domestic semiconductor manufacturing by offering financial incentives to companies. Under this initiative, Rs 76,000 crore has been allocated to develop fabrication units, design facilities, and testing centres.

Foreign investments are also strengthening India’s semiconductor ecosystem. In 2024, Micron Technology began constructing a USD 2.75 billion assembly and testing plant in Gujarat. This facility is expected to create over 20,000 jobs and support India’s goal of meeting 25% of its semiconductor demand domestically by 2030. Currently, India imports over 90% of its semiconductors, underscoring the importance of local production for supply chain resilience and cost reduction.

Beyond 5G: Chips Powering

Future Technologies

The importance of semiconductors extends beyond 5G networks. As industries transition to 6G and integrate technologies like AI and quantum computing, semiconductor chips are evolving to meet these demands.

6G, anticipated by 2030, will require chips with even greater processing capabilities to achieve speeds 100 times faster than 5G. These chips must support terahertz frequencies and advanced beamforming techniques, which improve signal precision and energy efficiency. Companies are already investing in R&D to develop prototypes for these next-generation networks.

As 5G networks expand, the demand for semiconductor chips will continue to rise, creating opportunities for local manufacturers and startups.

AI accelerators, a growing segment within the semiconductor market, are critical for enabling AI-driven applications. These chips power machine learning models used in autonomous vehicles, healthcare diagnostics, and smart city management. For instance, Nvidia’s AI GPUs and Google’s Tensor Processing Units are setting benchmarks in processing speed and efficiency, paving the way for smarter infrastructure.

AI and 5G: A Transformative Convergence

The convergence of AI and 5G is driving new possibilities in automation and real-time analytics. AI-enabled 5G networks use predictive algorithms to optimise traffic flow and reduce latency. Semiconductor chips designed for these applications ensure that networks remain adaptive to varying user demands.

In India, AI-driven 5G applications are expected to enhance the manufacturing, agriculture, and logistics industries. Smart factories powered by connected IoT devices will benefit from 5G’s low latency and AI’s predictive maintenance capabilities. Semiconductor innovation will play a vital role in ensuring the reliability of these systems.

Addressing India’s

Semiconductor Challenges

Despite the rapid advancements, the semiconductor industry in India faces significant challenges. The lack of fabrication facilities, limited skilled labour, and high production costs remain barriers to growth. Establishing foundries requires substantial investment, advanced technology, and consistent water and power supply.

To address these gaps, the India Semiconductor Mission is promoting partnerships between academic institutions and industry players to develop a skilled workforce. Training programs in semiconductor design and manufacturing are expected to strengthen India’s position in the global supply chain.

Sustainability is another pressing issue. Semiconductor manufacturing consumes large amounts of energy and water, contributing to environmental concerns. Companies are adopting greener technologies, such as energy-efficient fabs and waste recycling, to reduce their ecological footprint. These practices are essential for maintaining growth while meeting sustainability goals.

India’s semiconductor journey is poised for transformative growth, driven by government support, industry investments, and technological innovation. As 5G networks expand, the demand for semiconductor chips will continue to rise, creating opportunities for local manufacturers and startups.

Looking ahead, the integration of AI, 6G, and quantum computing will define the next phase of semiconductor development. By focusing on research, skill-building, and sustainability, India can establish itself as a global hub for semiconductor innovation. This industry’s progress will not only enhance connectivity but also play a pivotal role in accelerating the country’s economic growth and digital transformation.

By Shetal Mehta

The author is the Co-Founder of Suchi Semicon.

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