“I would say 2026 is a year of convergence,” Mathew said, pointing to the growing intersection of edge AI, cloud intelligence, physical AI and agentic AI across industries.
According to him, AI is already reshaping semiconductor design and development. Verification cycles that once required significant engineering effort are becoming increasingly automated, while changing AI workloads are also altering demand patterns within the semiconductor industry.”Earlier, we were talking about CPUs, and then the data centre era came with GPUs. Now CPUs are coming back because of agentic AI. That’s a huge shift,” he said.
The resurgence of CPUs highlights how quickly technological assumptions can change, he noted, adding that semiconductor companies are well positioned to benefit from the expanding AI ecosystem.
Mathew said India enters this phase with advantages built over decades as a global technology and digital services hub. While the country may not have developed a large-scale semiconductor manufacturing ecosystem earlier, the current AI-driven technology cycle offers a fresh opportunity.
“We were known for IT, digital transformation and scale, and we reaped the benefits of that for multiple decades. But now is the era in which we want to move into AI and semiconductors,” he said.
The UST executive said India should focus on combining its engineering talent with emerging AI capabilities to build long-term competitiveness in semiconductor technologies.
He added that global interest in India’s technology ecosystem continues to grow. UST is working with governments, technology firms and partners across multiple countries to bring advanced AI capabilities and semiconductor expertise into the country.
According to Mathew, international collaborations will play an important role in accelerating India’s ambitions in advanced technologies, particularly as countries look for diversified supply chains and new innovation hubs.
“Scale is great, but we need to do it intelligently,” he said, stressing that execution and ecosystem development will determine how effectively India capitalises on the AI and semiconductor opportunity.
For the full interview, watch the accompanying video
