Chip Talk > Synopsys and India's AI Ambitions: Building the World's First AI-Based Chip Foundry
Published July 22, 2025
The semiconductor industry is on the cusp of a significant transformation, driven largely by advancements in artificial intelligence (AI). At the heart of this revolution is Synopsys, a leading company in the electronic design automation (EDA) sector, which is now spearheading efforts to build the world's first AI-based chip foundry in collaboration with Tata Electronics in India. This initiative forms part of a broader plan to position India as a key player in the global semiconductor ecosystem, leveraging both local talents and government incentives.
Synopsys' partnership with Tata Electronics aims to establish an advanced semiconductor manufacturing facility in Dholera, Gujarat. The proposed foundry aspires to be the first of its kind to fully integrate AI into the manufacturing processes. According to Shankar Krishnamoorthy, Chief Product Development Officer at Synopsys, the project will deploy AI technologies to automate and enhance various phases of the semiconductor manufacturing workflow, including process control, defect detection, and production scheduling.
This collaboration is part of the Indian Government's Design Linked Incentive (DLI) program and the US$10 billion semiconductor incentive package designed to boost the local semiconductor industry. The initiative seeks not only to establish India as a hub for semiconductor manufacturing but also to drive innovation through advanced R&D capabilities. Read more about Synopsys and Tata's plans here.
The integration of AI in semiconductor manufacturing presents an opportunity to revolutionize the way chips are designed and produced. Through its collaboration with Microsoft, Synopsys is developing AI-driven agents capable of autonomously executing complex design tasks. The company's approach focuses on creating building-block components for task-level agents and underlying AI infrastructure.
This innovative use of AI could lead to significant reductions in design cycle times, enhance accuracy, and lower costs. By leveraging AI in the foundry, Synopsys aims to optimize various manufacturing stages, reduce defects, and improve overall efficiency.
Beyond its manufacturing ambitions, Synopsys is heavily invested in expanding India's semiconductor ecosystem. The company supports startups like Calligo Tech and Mindgrove Technologies by providing access to flexible, cloud-based design tools, enabling them to innovate without the constraints of physical compute infrastructure. Moreover, Synopsys collaborates with premier academic institutions, including IIT Bombay and IIT Kerala, to develop a specialized talent pipeline focused on semiconductor R&D.
India, already home to an estimated 20–25% of global semiconductor professionals, is viewed by Synopsys as a critical innovation hub. With substantial investment in local R&D centers, the company is poised to support over 100 global companies, positioning India as a key contributor to the global semiconductor industry's evolution.
The Indian semiconductor market is expected to more than double from US$52 billion in 2024 to US$103.4 billion by 2030, according to the India Electronics and Semiconductor Association (IESA). As Synopsys continues to drive forward with AI-driven manufacturing and strategic partnerships, it is well-positioned to be a central figure in this transformation. The company's recent acquisition of ANSYS further bolsters its capabilities, widening its market reach and enhancing its potential to offer comprehensive solutions from silicon to systems engineering.
Synopsys' long-term commitment to India, through strategic relationships and investments, is set to reshape the global semiconductor landscape. By integrating cutting-edge AI technologies into manufacturing and design processes, the company is advancing the capabilities of the semiconductor industry, with India poised to emerge as a leading force in this new AI-driven era.
For a deeper dive into Synopsys' initiatives and its impact on the semiconductor sector, visit their press release.
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