Qualcomm is in talks with multiple suppliers, including the Tata Group, to utilise the country's chip packaging capacity and is open to engaging with new fab players, American chip major’s chief operating officer Akash Palkhiwala, who is also the chief financial officer, has said.
Qualcomm, which specialises in designing chips and is best known for its Snapdragon processors that power smartphones, tablets, and laptops, has been expanding its India presence through increased R&D and manufacturing. It is targeting a bigger role in India's digital ecosystem by closely aligning with the country's semiconductor and AI initiatives.
In an interview to Moneycontrol, Palkhiwala said the chip maker plans to expand its four engineering hubs in India, which is a key part of its global strategy, and will also increase investments in Indian startups. Edited excerpts of the interview:
How do you view India’s progress on semiconductor and AI missions and how will Qualcomm contribute beyond skilling initiatives?
First of all, we are incredibly encouraged. I think the government is launching very strong initiatives around semiconductors, “Made in India,” and digitising the country. We’re supporting these efforts in multiple ways. Our employee base here is one way, and our venture capital investments are another.
Additionally, on the manufacturing and chip-packaging side, we welcome diversification. We’re in discussions with various suppliers, and as they scale capacity and build the kind of manufacturing we need, we plan to tap into that. We’re also closely engaged with groups like the Tata Group and others.
With initiatives like ISM 2.0 and the latest fab proposals, do you think India will create an environment competitive enough for Qualcomm to consider fabrication?
Yes, absolutely. There are many types of fabrication—older nodes and leading-edge nodes. You’ve seen key fabs around the world expand globally, and new players are entering the picture. India clearly has the opportunity to develop new fabrication players.
One of Qualcomm’s strengths is our diversified supplier base for fabrication. As India begins to create those players, we’ll be ready to tap into them.
How does Qualcomm view India's AI mission and will the company work more closely with the government?
We see AI from two angles. First, it will be hybrid — running seamlessly in the cloud and on devices, where we have a strong position. Second, we’re entering the data centre space with CPUs and AI accelerator chips, presenting a major opportunity and focus for the next year or two.
How do you see India’s market prospects, given that the demand has plateaued at around 150 million units?
India is very significant for us, and I believe we’re just at the start of a major transformation. It’s not only about the large population — trends like premiumisation are driving consumers toward higher-end, more capable devices, which plays to our strengths. Indian consumers are also highly tech-aware, understanding brands and innovation, which aligns perfectly with what we offer.
Will this remain the dominant area for investment and revenue opportunity?
I think there’s tremendous opportunity. Over the next five to ten years, you’ll see Qualcomm grow very significantly.
What role do you see India playing in 6G standardisation, especially within the 3GPP, given your long support from 3G to 5G and now 6G?
There’s a tremendous opportunity here. One thing to keep in mind about standards is that you need to get involved early and influence decisions within the standards bodies. One advantage Qualcomm brings is our growing presence in India — both in engineering and products — so we have a strong understanding of what the Indian market needs.
We’re also collaborating with key players in India to define what 6G will require—in terms of spectrum, performance, and device costs. We’ll integrate those needs. And since the foundation of 6G will be built around AI, it aligns well with the broader conversation around artificial intelligence.
How do you assess the situation arising from tariff developments? Is there uncertainty in the semiconductor and chipset world where Qualcomm operates?
The way we see it, our business is about technology. You build the best products, lead in innovation, and work closely with customers to support them. That’s the part of the business we control, and that’s where our focus lies — on execution.
Are you setting steep targets for Qualcomm Ventures as far investment in Indian startups go?
There isn’t a specific target per se. It’s about identifying the right opportunities and investing in them. And when we invest, we don’t just provide capital — we also offer engineering support. We want these companies to succeed. That’s our model. So while there’s no fixed target, if you’re asking whether we’ll invest more in the future than we have in the past, the answer is absolutely yes.
Have you decided on an increased corpus for that?
Again, we don’t operate based on specific financial targets.
How do you balance investments between emerging markets sucha as India and other regions?
Think of Qualcomm as a technology-first company. Our approach is: what are the technology investments needed to shape the future? Once we identify that, we decide where to invest to make it happen. So the first question isn’t about location or scale — it’s about technology. Everything else follows from that.
How is the diversification beyond smartphones panning out?
Our strategy is simple: smartphone technology powers other devices. Cars are becoming like connected phones with cloud and autonomous features, PCs now need communication-focused tech and wearables like smart glasses offer new interactive experiences. Qualcomm’s leadership in smartphones positions us to extend these capabilities across industries.
As CFO, how do you view acquisitions under the diversification strategy?
The approach we’ve taken is that when we decide to enter a new device category — for example, PCs— one of the things we needed was a more powerful CPU. So we ended up acquiring Nuvia, which had by far the leading team globally in CPU development. We took advantage of that. So it’s always within the same strategic framework I outlined, but we look for assets that are missing to make something happen.
Are India’s four R&D centres contributing enough globally or will you invest more here?
Yes, absolutely. We’ve grown very significantly in India over the last 20 years, and especially over the last five years. The reason is relatively simple: the talent pool is incredible. Secondly, we have many strong customers here and we want engineering to be close to customers to support them. I don’t see any of that changing. As we continue to grow as a company, we’re going to need different skill sets, and those are available in India, so we’ll tap into them.
Which means we can expect more investment?
Yes.
Despite India’s 4G and 5G scale, 200–250 million people still use older technologies. Qualcomm has worked with Jio on feature phone chipsets. Do you think more needs to be done to make encourage the switch?
As a technology company, we aim to make innovation accessible and affordable. Past efforts will continue, because once people start using data and smarter devices, they naturally upgrade. This isn’t just India — globally, technology creates new use cases, drives demand, and we must ensure no one is left behind.
Where does Qualcomm see itself in the Indian market over the next three years?
It’s one of the fastest-growing markets for us because it’s transforming so quickly. It has a very large consumer base under 30 years old, and that demographic wants the best experiences. They’re not looking to compromise or buy lower-tier devices. That’s great for us because it allows us to contribute to societal change while also benefiting financially.
With Starlink, OneWeb, and Jio-SES coming and Qualcomm showcasing satellite-enabled devices, how do you see a big SATCOM market?
It depends on the device type. For phones, the primary network will continue to be 5G, with satellite serving as a backup where 5G coverage isn’t available. For airplanes, for example, satellite is the primary network.
There’s tremendous opportunity, though it varies by device. But clearly satellite is one of the essential network types the world needs. Qualcomm is very supportive. As you know, we started with wireless-satellite interactions — it’s close to our heart. It’s a technology we’re passionate about, and we’ll continue to support it.
How soon can we expect a device capable of making regular direct calls over satellite?
I don’t see that happening. You’ll continue to use 5G networks for regular calls because it makes more sense financially and in terms of performance. Satellite will remain a backup network where coverage is lacking.
You spoke about personal, industrial, and physical AI — are India’s centres covering all three and could the country become a hub for them?
Our engineering teams in India are working on all three areas — and at scale. Importantly, they’re not just building for India but for global consumption and innovation. So there’s tremendous opportunity. From an end-market perspective as well, India will play a key role in all three domains.
How is your bet on PC space in India shaping up?
We’re excited. The PC industry hasn’t seen this level of innovation in years, and Qualcomm’s new chips have delivered massive performance gains. We believe this is just the beginning of a large market where we have the technology to become a top player.
Do you expect consolidation in the global semiconductor industry?
The market is already fairly consolidated. Qualcomm brings a different performance metric — better battery life, strong AI capabilities, and unmatched device experience — which we’re now extending to PCs.
Is smartphone innovation stuck?
Not at all. We’re at the start of a major transformation: phones are becoming AI-first, shifting interaction from touch to voice and AI assistants and 6G will redefine devices over the next few years, creating huge opportunities.
With most Indian phone brands gone, could a stronger local ecosystem have emerged? Should the government support local champions?
I think the government is already doing a lot of different things for the economy — and very successfully, I might add. I’m sure this will be one of their objectives as well. Qualcomm is ready to support whenever that happens.
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