AI, data centres drive chip demand
AI-driven data centres are reshaping global semiconductor demand, with automotive and “physical AI” emerging as the next major growth frontiers, says Cadence India MD Alok Jain.
AI and data centres have become the dominant force behind rising semiconductor demand, according to Alok Jain, corporate vice-president and India managing director at Cadence Design Systems.
In an interview, Jain said the surge in AI workloads is fundamentally changing chip design requirements, especially around performance, power efficiency, memory bandwidth and advanced packaging.
He said hyperscale data centres currently account for the bulk of demand, alongside growing use of edge AI in industrial systems and consumer devices.
He added that the next phase of growth will come from “physical AI” including robotics, autonomous systems and intelligent mobility which will significantly expand semiconductor requirements.
Automotive, he said, is becoming a key growth sector as vehicles evolve into AI-powered computing platforms.
Jain also highlighted India’s growing role in global chip design, noting that more than 40% of Cadence’s R&D is now based in the country, spanning electronic design automation, IP development and system-level engineering.
However, he said India must move beyond execution-led work and strengthen capabilities in system architecture and product innovation to move up the value chain.
On AI in chip design, Jain said it is increasingly being embedded across workflows to speed up verification, implementation and optimisation, but stressed that human expertise remains essential for architectural and system-level decisions.
