Semiconductor and IoT GCCs: The New Frontier for India’s IT Ecosystem

Over the past 20 years, Global Capability Centers in India have experienced a tremendous transformation.

Global Capability Centers (GCCs) specialized in the semiconductor industry in India represent 7% of the total GCC count globally. These facilities employ approximately 20% of the world’s semiconductor design workforce. More than 50 Global Capability Centers (GCCs) carry out fabless semiconductor design efforts. India’s semiconductor ecosystem includes 55–80 global companies, 80–100+ design centers, and over 250,000 engineers. Most of these semiconductor-focused Global Capability Centers (GCCs) are located in places like Bengaluru and Hyderabad.

India’s IoT Global Capability Centers serve as the engineering backbone that connects billions of sensors, machines, and gadgets to intelligent cloud platforms, transforming raw physical information into real-world decisions

How IoT GCCs bridge the gap

Smart manufacturing & Industry 4.0

IoT GCCs power predictive maintenance systems, real-time machine monitoring, and smart factory automation. Factories using IIoT solutions report 15–30% productivity gains from reduced unplanned downtime.

Leading IoT GCC players in India

IoT GCCs are especially useful because of their capacity to combine data, software, and hardware to produce end-to-end solutions with practical applications.

Several converging factors fuel the rise of semiconductor and IoT GCCs in India.

1. Government Policy &  initiatives

According to India’s National Policy on GCCs, the country’s GCC footprint will grow from 1,800 to 5,000 centers, creating 20 to 25 million jobs by 2030 and increasing the sector’s GDP contribution to $470 to $600 billion. States like Maharashtra, Telangana, and Karnataka are reportedly competing on plug-and-play infrastructure, AI missions, and semiconductor policy rather than waiting.

2. Talent that leads, not just executes

Over the last five years, the number of Indian global leadership positions has increased at a CAGR of 40%, reaching more than 6,500 positions in 2024. By 2030, that number is expected to exceed 30,000. GCCs are developing targeted, high-value use cases with the support of a talent pool of more than 120,000 AI/ML experts and more than 185 specialized AI/ML Centers of Excellence.

3. Supply chains didn’t just break—they redirected to India

Approximately 110 new GCCs were founded in India between early 2024 and late 2025, with businesses from the UK, Germany, Japan, and Denmark expanding their presence in the country due to its capabilities and speed rather than its cost. Through 2024, one new GCC launched per week.

4. Cost to innovation—the most misunderstood advantage

Top talent in India is still 40–60% pricier on average than in any other market. However, these positions are not commodities. Currently, more than half of GCCs are in charge of portfolio and transformation projects. The growth rate of ER&D GCCs has been 1.3 times greater than that of the GCC as a whole, demonstrating a clear shift towards higher-value activity.

5. Every industry going digital created infinite demand

In 2024, more than 78% of newly opened GCC centers gave priority to digital capabilities. India is currently the world’s largest AI engineering base outside of Silicon Valley, with more than 500 centers devoted to AI and machine learning.

Semiconductor and IoT GCCs are rewriting India’s economic identity and producing jobs. From IP ownership to innovation leadership, the opportunity is generational.

For two decades, brilliant work inside someone else’s product built India’s tech economy. That chapter is closing. Patent filings in India reached 110,375 in FY 2024–25, a 19.75% year-on-year increase, with Indian applicants now accounting for nearly 62% of all filings, up from 56% the previous year.

First, it makes it possible for the nation to advance up the value chain from service provision to product manufacturing and intellectual property ownership. Long-term economic growth depends on this shift.

Secondly, it promotes the establishment of high-skill jobs. In addition to being lucrative, positions in chip design, embedded systems, IoT architecture, and AI integration are strategically significant.

The availability of talent is another important consideration. Every year, India generates a sizable number of engineers, many of whom are experts in embedded systems, electronics, and cutting-edge technologies like artificial intelligence and machine learning.

India also has a strong cost-to-innovation advantage. Businesses are gaining access to high-quality innovation at scale in addition to cutting expenses. Finally, the fast speed of digital change across industries is driving the exceptional need for linked, intelligent systems and the expansion of these GCCs.

Despite the momentum, several challenges remain.

1. Talent gap in highly specialized areas

Only a small percentage of India’s annual engineering graduates possess the specialist abilities needed for advanced IoT engineering or semiconductor design fabrication support. There are shortages in fields including advanced packaging, embedded systems work, and chip design verification. Professionals at the mid- to senior level with 5 to 12 years of experience show greater attrition rates. Competition for these profiles prolongs hiring timeframes and increases compensation expenses. Global Capability of Semiconductor Design Throughout the majority of 2025, centers saw reduced hiring, with a slight rebound in the last quarter.

2. Semiconductor fabrication infrastructure

Infrastructure gaps affect both design and potential manufacturing-linked activities. 

Water and a dependable, high-quality electricity supply are still unreliable in several places. Cleanroom-quality facilities and reliable, continuous utilities are essential for semiconductor processing. Numerous projects are located in Tier 1 cities, where utility strain and traffic occur. There is a limited enabling ecology, such as transportation and high-speed internet, for expansion into Tier 2 and Tier 3 areas. These variables cause the construction and setup of specialist facilities to take longer than anticipated.

3. Supply chain

Supply chain dependencies create additional pressure. The semiconductor industry imports the majority of specialty gases and chemicals used in its activities. This increases expenses and leaves enterprises vulnerable to trade restrictions and worldwide disruptions. Geopolitical developments and export restrictions on technology and equipment make long-term planning for global capability centers and their parent corporations more unclear.

4. Cost

Cost pressures might take many different shapes. Establishing or expanding specialized centers requires a substantial initial investment. Operating costs rise in high-demand skill areas due to wage inflation. When new hires are trained to meet project standards, they increase timelines and budgets. Because of these combined circumstances, several Global Capability Centers report a slower ramp-up of new mandates.

In addition, well-known semiconductor hubs like Taiwan, South Korea, and the US pose a serious threat to India. Government, business, and academics must work together to address these issues.

The Road Ahead: India’s Deep-Tech Future

India’s semiconductor and Internet of Things GCCs appear to have a bright future. Experts expect IoT innovation hubs and chip design centers to grow quickly in the near future. The ecosystem will be further strengthened in the medium term by investments in semiconductor manufacturing and more industry-academia cooperation.

In the long run, India has the potential to become a global hub for end-to-end electronics innovation, spanning design, development, and manufacturing.

The emergence of semiconductor and IoT GCCs signals a turning point in India’s tech evolution, not a continuation of the IT services legacy but a reinvention of it. India is no longer just a nation that writes code; it is becoming one that architects the very silicon powering the modern world. As connectivity and chip-driven innovation reshape every industry, India is stepping into the center of that transformation. The conversation has shifted. It is no longer about whether India belongs in the deep-tech revolution but how decisively it will lead it.