TCS Launches Chiplet-Based Services to Power India’s Semiconductor Revolution
Introduction
Imagine a future where chips that power your smartphone, electric vehicle, or AI assistant are designed faster, cheaper, and smarter — all made in India. Tata Consultancy Services (TCS), one of the world’s leading IT services firms, has just taken a bold step toward this future. The company has launched Chiplet-Based System Engineering Services, a move that could not only reshape global semiconductor innovation but also accelerate India’s ambition to become a major hub for chip design and manufacturing.
This development comes at a pivotal moment: India’s semiconductor market, valued at $45–50 billion in 2024–25, is expected to more than double by 2030. With strong government backing and global demand for chips soaring, TCS’s initiative could be the missing piece of the puzzle.
What Are Chiplets and Why Do They Matter?
For decades, the semiconductor industry followed a simple principle: make chips smaller by squeezing more transistors onto them. But as we reach the limits of physics, this “shrink to fit” model is no longer sustainable. Enter chiplets.
Chiplets are small, modular integrated circuits that can be combined like Lego blocks to form larger, more powerful chips.
Instead of designing one massive, complex chip, engineers can build different chiplets — each optimized for a specific function (AI, memory, graphics, etc.) — and integrate them into a single system.
This approach reduces costs, shortens development cycles, and increases flexibility.
Think of it like assembling a high-performance car: instead of building the entire engine from scratch every time, you pick ready-made components — turbocharger, gearbox, fuel system — and fine-tune them to work together.
Why TCS’s Entry Into Chiplet-Based Services Is Big News
TCS has long been known as an IT services powerhouse. But with this new offering, the company is positioning itself as a serious player in semiconductor design and engineering services. Here’s why this matters:
Global Demand Surge: AI, cloud computing, 5G, electric vehicles, and connected devices are driving unprecedented demand for advanced chips.
Industry Bottlenecks: Traditional chip design is expensive, slow, and nearing physical limits. Chiplet-based design offers a solution.
India’s Timing: With the government’s ₹76,000 crore India Semiconductor Mission (ISM), the ecosystem is primed for growth.
TCS’s Capabilities: From advanced package design (2.5D/3D interposers) to UCIe (Universal Chiplet Interconnect Express) and HBM (High Bandwidth Memory), TCS brings a full suite of expertise to the table.
India’s Semiconductor Push: A National Mission
The Indian government isn’t just watching from the sidelines. Through the India Semiconductor Mission (ISM), New Delhi is pouring billions into attracting global chipmakers, building fabs, and nurturing local talent.
Funding Outlay: ₹76,000 crore allocated to boost design and manufacturing.
Talent Advantage: India already has 20% of the world’s chip design engineers.
Global Investment: Major players are setting up manufacturing and assembly facilities in India.
TCS’s move complements this effort by providing the design-to-system expertise that both Indian and international firms need to succeed.
Inside TCS’s Chiplet-Based Services
So, what exactly is TCS offering? Here’s a breakdown:
🔹 System-Level Design & Verification
Support for UCIe and HBM standards, ensuring compatibility and performance.
Tools to accelerate chiplet tape-out (the process of finalizing chip design before manufacturing).
🔹 Advanced Packaging Solutions
2.5D and 3D interposers for high-density connections.
Multi-layer organic substrates that provide durability and flexibility.
Focus on compact designs with low latency and strong signal integrity.
🔹 Real-World Impact
Faster product launches for chipmakers.
Lower development costs and improved scalability.
More innovative solutions for industries from AI to automotive.
In one recent collaboration, TCS partnered with a North American semiconductor company to modernize its design process. Using chiplet-based methods, TCS helped integrate different types of chips into a unified system — speeding up the launch of next-generation AI processors.
Industry Impact: A Turning Point for Semiconductors
The shift toward chiplets represents more than just a technical evolution. It’s an industry turning point.
For Chipmakers: Faster innovation and reduced risk.
For Businesses: More powerful chips tailored to specific applications.
For India: A chance to move from being a back-office IT hub to a front-line semiconductor leader.
As V Rajanna, President of Technology, Software and Services at TCS, puts it:
“Semiconductors are the foundational technology driving digital innovation. TCS Chiplet-based System Engineering services will help enterprises accelerate flexibility, scalability, and faster time to market.”
The Benefits and Challenges Ahead
Like any innovation, chiplet-based design brings both opportunities and hurdles.
✅ Benefits
Faster product cycles.
Cost savings through modularity.
Flexibility to mix and match chiplets for different needs.
Stronger performance for AI, cloud, and mobility applications.
⚠️ Challenges
Standardization is still evolving (UCIe adoption takes time).
Complex supply chain coordination.
High upfront investment in R&D and tooling.
TCS’s Broader Role in India’s Tech Journey
For nearly six decades, TCS has been a silent force behind India’s digital transformation — from enabling stock exchanges and passport services to improving healthcare and pensions. Its foray into semiconductors marks a new chapter in this journey.
By combining global partnerships, deep technical expertise, and government support, TCS could help India leapfrog into the league of semiconductor powerhouses like Taiwan, South Korea, and the U.S.
FAQ: TCS’s Chiplet-Based Services
Q1. What is chiplet-based design?
Chiplet-based design involves using smaller, modular chips that can be integrated into a larger system, offering flexibility, cost savings, and faster development compared to traditional monolithic chips.
Q2. Why is this important for India?
It aligns with India’s ₹76,000 crore Semiconductor Mission and supports the country’s ambition to become a global hub for chip design and manufacturing.
Q3. What industries will benefit the most?
AI, cloud computing, smartphones, electric vehicles, and IoT will see the biggest gains from faster, more efficient chip designs.
Q4. How is TCS different from traditional chipmakers?
TCS isn’t manufacturing chips itself but providing system engineering services — design, verification, packaging — that help chipmakers innovate faster.
Q5. Does this mean India will build its own chips soon?
India is building capabilities step by step. With global investments, government backing, and services like TCS’s, the ecosystem is rapidly strengthening.
Conclusion: A Defining Moment for India’s Chip Future
The semiconductor industry is at a crossroads, and India has a rare opportunity to shape its future. With chiplet-based services, TCS is not just adding a new business line — it’s helping lay the foundation for India’s rise as a global semiconductor hub.
The coming years will determine whether India can turn its talent pool and government push into lasting global leadership. But one thing is clear: with initiatives like this, the country is no longer a spectator in the chip race — it’s getting ready to lead it.
👉 What do you think? Can India truly become the next semiconductor powerhouse? Share your thoughts in the comments below and explore more insights on our tech section.
👉 If you want to understand why scientists are calling it a game-changer, check out this detailed article on the India–US NISAR Mission 2025 and its historic role in climate research and exam preparation, where you’ll learn how this satellite will track Earth’s changes and why it’s a must-know topic for competitive exams.