TCS expands into chiplet engineering to back India’s $100 bn chip ambition

Tata Consultancy Services has announced chiplet-based system engineering services designed to help semiconductor firms build faster and more powerful processors. The IT services company said the offering will allow chipmakers to combine smaller integrated circuits into larger, more efficient chips. The Economic Times reported that TCS expects this modular approach to cut costs and shorten product launch cycles.

Building with chiplets

Chiplets are smaller, specialised chips that can be packaged together to deliver the performance of a monolithic processor. By enabling firms to “mix and match” components, the design approach provides greater flexibility at a time when semiconductor manufacturing costs are soaring.

TCS said its services will cover design and verification for Universal Chiplet Interconnect Express (UCIe), an open industry standard that allows high-bandwidth, low-latency communication between chiplets, and High Bandwidth Memory (HBM), which provides fast and efficient data access for processors used in artificial intelligence and high-performance computing.

“Semiconductors are the foundational technology driving digital innovation and powering differentiated experiences,” V Rajanna, president of technology, software and services at TCS, told the Economic Times. He said the chiplet-based services “will help semiconductor enterprises accelerate chiplets tapeout, driving flexibility and scalability.”

Market backdrop

India’s semiconductor market is currently valued at $45-50 billion for 2024-25 and is projected to grow to $100-110 billion by 2030, according to TCS figures cited by Business Standard. The expansion is underpinned by the government’s ₹76,000-crore India Semiconductor Mission, which seeks to attract global manufacturers and reduce dependence on imports.

Government officials have repeatedly highlighted India’s talent advantage, with 20% of the world’s chip design engineers based in the country. This pool has helped draw both domestic and international investment into design centres, assembly plants and packaging facilities.

TCS has been active in semiconductor engineering for more than two decades, offering services across product design, testing and lifecycle management. The company said its new chiplet offering builds on that base and reflects its strategy of supporting clients across the value chain.

Rajanna argued that TCS’s combination of industry knowledge and execution track record makes it “a preferred partner to drive innovation at scale.” By aligning its services to emerging standards such as UCIe, the firm is seeking to position itself as a bridge between design houses and manufacturers.

Global context

The Wall Street Journal has reported that chiplet design is increasingly seen as a way to sustain performance improvements in processors without prohibitive increases in cost. As transistor scaling becomes more expensive, modular approaches allow companies to reuse validated blocks while tailoring chips for specific functions.

Industry analysts suggest the approach will gain traction in markets ranging from data centres to consumer electronics, particularly as demand for AI accelerators surges. TCS’s entry reflects a wider trend of IT services firms stepping deeper into the semiconductor ecosystem, moving beyond software outsourcing into engineering services traditionally dominated by specialist design houses.

The launch comes at a time when India is trying to secure a place in global semiconductor supply chains. New Delhi has approved several proposals for fabrication and packaging facilities in recent months, while major international firms have announced design expansions in the country.

By unveiling chiplet engineering services now, TCS is aligning with both global industry trends and domestic policy priorities. Analysts quoted in the Economic Times said such offerings could help India move higher up the value chain, from providing talent to shaping standards and solutions.