Hyderabad Emerging as Global Hub for Semiconductor Design, Says Sasken CEO
Hyderabad, June 8 (TNT): Hyderabad has emerged as a major centre for semiconductor design and intellectual property (IP) development, with complete chip design and related software engineering increasingly being carried out from the city, according to Rajiv C Mody, Chairman, Managing Director and CEO of Sasken Technologies.
Talking to reporters on the occasion of opening of its Centre of Excellence in Hyderabad, Mody said the city has developed a strong semiconductor ecosystem over the past decade and now hosts several leading global technology customers.
“Complete chip design is happening in Hyderabad. IP design predominantly is happening here. The only thing missing is large-scale semiconductor fabrication and silicon manufacturing, but in terms of IP creation and software development, Hyderabad is second to none globally,” he said.
He added that changing geopolitical dynamics are expected to further strengthen India’s position in semiconductor design and engineering.
Mody said Sasken currently holds a portfolio of around 200 patents and continues to invest significantly in research and development.
“We invest at least 4-5 per cent of our revenues in R&D every year. Innovation is critical to protecting and growing our intellectual property portfolio,” he said, adding that the company’s R&D investments are spread across its delivery and engineering centres rather than being restricted to a single location.
On expansion plans, Mody said Sasken continues to evaluate opportunities across emerging technology hubs.
While the company has no immediate plans for a facility in Andhra Pradesh, he noted that Visakhapatnam is emerging as an important destination, particularly with proposed investments in data centres and digital infrastructure.
Asked about future growth drivers, Mody said semiconductors would remain central to technological transformation across industries.
“Everything is getting impacted by semiconductors — automotive, industrial automation, robotics and smart homes. Advances in semiconductors will drive innovation across sectors over the next five to eight years,” he said.
Referring to the supply-chain disruptions witnessed during the COVID-19 pandemic, he said the crisis highlighted the strategic importance of semiconductors to the global economy.
“That is when everyone realised that semiconductors are as important to the economy as oil,” he remarked.
On the impact of geopolitical tensions, including the ongoing Iran-related conflict, Mody said the company has not experienced any direct business impact so far, though higher global oil prices remain a concern.
Regarding manufacturing ambitions, he said Sasken intends to continue with its asset-light business model and has no immediate plans to enter semiconductor manufacturing.
“Our strength lies in design, engineering and technology solutions. Manufacturing requires a different set of capabilities. We believe an asset-light approach allows us to focus on innovation and leverage global manufacturing ecosystems wherever it makes economic sense,” Mody said.
He added that in today’s interconnected world, semiconductor designs can be developed in India and manufactured anywhere globally, enabling customers to optimise supply chains and respond effectively to geopolitical developments.
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