Tata Consultancy Services (TCS) has introduced its Chiplet-based System Engineering Services, aimed at enabling semiconductor companies to design advanced chips using modular chiplet technology. This approach involves integrating smaller, specialized chips to create more efficient and powerful processors, addressing the growing global demand for high-performance semiconductors.
The announcement aligns with India's ambition to become a global semiconductor hub, supported by significant government investment through the Rs. 76,000 crore India Semiconductor Mission. India's semiconductor market, valued at $45–50 billion in 2024-2025, is expected to reach $100–110 billion by 2030, with the country already hosting 20 percent of the world's chip design engineers. The shift toward chiplet-based designs, which allows for faster production and cost efficiencies by combining pre-tested chiplets, is seen as a response to the limitations of traditional chip scaling.
At Semicon India 2025, held recently, the government outlined key initiatives to strengthen the domestic semiconductor ecosystem. These include incentives for chip manufacturing, the establishment of semiconductor fabrication units, and partnerships with global firms to enhance research and production capabilities. A notable announcement was the collaboration with IBM to establish a semiconductor research center focused on advanced packaging and heterogeneous integration, critical for chiplet technology. Additionally, the government highlighted plans for a fabrication plant in Gujarat, in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corp, set to be operational by 2026, and an assembly and testing facility in Assam.
TCS's new services, which include design and verification of industry standards like Universal Chiplet Interconnect Express (UCIe) and High Bandwidth Memory (HBM), as well as advanced packaging solutions, come at a time when these government efforts are gaining momentum. The company, with over 20 years of experience in the semiconductor sector, has also collaborated with a North American firm to streamline heterogeneous chip integration for AI processors. TCS's move is positioned to leverage India's growing infrastructure and talent pool in chip design, as the nation seeks to reduce reliance on imported semiconductors.
The launch coincides with increasing global demand for chips driven by AI, cloud computing, and electric vehicles, making chiplet-based designs a focal point for innovation.
