Global AI Conclave: Tens of thousands of Bengaluru's chip designers give India an edge in semiconductor industry, says Chip War author

Tens of thousands of chip designers in Bengaluru give India an extraordinary base to build on for its goal of becoming a significant part of the global value chain of semiconductors, Chip War author Chris Miller said on December 16.

"For a big chip design or fabless firm you need two things: a capital market and a VC ecosystem willing to take the bet and a large user base," Miller said at the CNBC-TV18 and Moneycontrol Global AI Conclave.

While India has launched a $10 billion chip subsidy scheme to attract semiconductor makers to the country, the noted author said that pursuing chip design holds more promise as a strategy.

"I think it's very understandable to focus on chip design as it has a large value addition. But if you want to give a lot of jobs to low-paid workers, then chip packaging seems a good way to go. Politicians in every country love manufacturing facilities because they can cut a ribbon and get a photo op," he said.

"If you look at the chip industry today, most of the value still lies in chip design. If you speak to TSMC, they might say we would rather be like Nvidia," he explained.

Chip War, authored by Miller and published in October 2022, is an epic account of the decades-long battle to control microchip technology — something that is indispensable to the modern world, from missiles to microwaves, smartphones to the stock market.