New Delhi, Jan 28 (IANS): The demand for semiconductors in India in the artificial intelligence (AI) era is likely to increase to 28 per cent by the end of 2026, close to the global expected demand of 29 per cent, according to a report on Tuesday.

Majority of downstream organisations anticipate increased demand for AI chips, custom silicon chips, and memory-intensive chips over the next 12 months, said the report by the Capgemini Research Institute (CRI).

About 96 per cent of surveyed Indian downstream organisations are expecting an increase in demand for AI chips/chips designed for AI acceleration, as compared to 88 per cent global organisations.

Nearly 96 per cent of Indian downstream organisations are expecting an increase in demand for custom silicon chips (custom ASIC), as compared to 81 per cent global organisations, the report mentioned.

Similarly, 82 per cent of Indian firms are expecting an increase in demand for memory-intensive chips (HBM, GDDR6) as compared to 79 per cent global organisations.

Meanwhile, 54 per cent of Indian downstream organisations are already using custom silicon chips in their products, nearly at par with 56 per cent global organisations.

Downstream industries are the final stages of production and sale of goods, where raw materials are refined into finished products.

According to the report, 50 per cent of the Indian downstream firms believe that advancements in AI/ML acceleration is the most relevant semiconductor advancement for downstream industries, while 45 per cent of them say that it is advancements in GPU computing that can bring the most value.

‘Enhanced security’ is the top-ranked technology innovations desired by Indian downstream organisations, with 50 per cent respondents stating this, followed by 48 per cent of Indian firms selecting the ‘availability of more comprehensive APIs, SDKs, kits, boards, etc.’, and 46 per cent selecting ‘enhanced customisation’.

Moreover, 52 per cent of them are confident that the semiconductor industry will continue to innovate at a pace that meets the future needs.