“2025 has been a year where the semiconductor industry stopped reacting and started reflecting. From where I sit, working closely with OEMs, chip companies, and system teams, the conversation has clearly moved beyond shortages and fabs. The real challenge today is complexity. Chips are expected to do more, interact with more software, meet tighter safety and security requirements, and still get to market faster. What we consistently see is that teams are struggling not because of lack of ideas, but because the traditional ways of building and validating silicon-centric systems simply aren’t scaling anymore.
Another very real issue in 2025 has been the talent gap—not in numbers, but in depth. There is no shortage of engineers, but there is a shortage of people who truly understand systems: how silicon behaviour, embedded software, safety, and usage all come together. This is especially visible in automotive and industrial programs, where verification effort is growing faster than feature content.
Looking into 2026, I believe the winners will be those who move upstream—investing earlier in virtualisation and software-first thinking. Digital twins, virtual ECUs, and AI-assisted verification are no longer optional. We are already seeing budgets shift toward early validation, because that’s where risk can still be shaped.
India, in this context, has a unique opportunity. While manufacturing will evolve over time, India’s real strength today lies in semiconductor R&D and system engineering. If we build deep silicon-to-system capability rather than chase scale alone, India can influence how global products are designed—not just where they are built.”
