Cadence urges India to develop domestic EDA sector to boost chip ambitions

Cadence Design Systems is lobbying the Indian government to foster a domestic electronic design automation (EDA) industry as part of a broader push to strengthen the country's semiconductor capabilities. Managing Director Alok Jain told reporters that a balanced ecosystem—covering design, verification, talent, manufacturing and packaging—requires indigenous EDA tools, noting that the worldwide market is currently worth $16-21 billion and could reach $43 billion by 2035.

He said India can launch such an industry without massive capital, citing existing startups worldwide, and proposed support models such as consultancy, pay-per-use, or cloud-based tools to make them affordable for small firms. Jain pointed out that only about 11 % of the 370 Indian semiconductor design startups have funding, and that high tool costs and a shortage of senior talent are major hurdles. He also emphasized the need for startups to adopt a product-centric approach and improve market readiness. Cadence relies heavily on Indian engineers, with 30-40 % of its global workforce based there, but sees a gap in senior-level expertise that must be addressed.