Archive · 17 Sep 2026
India Poised to Build AI-Native Semiconductor Ecosystem Advantage
India is building more of its semiconductor industry at a time when artificial intelligence is becoming important.
UST says this gives India a chance to design factories and supply chains for AI from the beginning.
That could help India avoid changing older systems later.
UST is working with Kaynes Semicon on an AI-focused chip assembly and testing plant in Gujarat.
The company also says robots may help automate some operations.
Gilroy Mathew described AI as moving from simple tools to systems that help design and manage production.
In the future, products such as vehicles and devices may be created with AI built into them from the start.
He said companies will need reliable data, practical systems, skilled industry experts, and strong security rules.
UST says India can build an AI-native semiconductor ecosystem without retrofitting older designs.
The company says current investments in infrastructure and talent could support AI-enabled manufacturing and supply chains.
UST and Kaynes Semicon are developing an AI-native Outsourced Semiconductor Assembly and Test facility in Sanand, Gujarat.
UST Chief Operating Officer Gilroy Mathew said AI is progressing from a helpful feature to models and eventually AI-native products.
Mathew identified trusted data, operational systems, domain engineers, and strong governance as foundations for successful AI transformation.
- Who
- UST, its Chief Operating Officer Gilroy Mathew, and joint-venture partner Kaynes Semicon.
- What
- They are promoting an AI-native semiconductor ecosystem and developing an AI-native OSAT facility.
- When
- The remarks were made on Thursday at the SEMICON India 2026 conference.
- Where
- The planned OSAT facility is in Sanand, Gujarat, India.
- Why
- UST says India is building infrastructure and talent at a time that allows it to integrate AI from the outset.
- Company
- UST
- Joint-venture partner
- Kaynes Semicon
- Facility type
- Outsourced Semiconductor Assembly and Test (OSAT)
- Facility location
- Sanand, Gujarat
- Event
- SEMICON India 2026
- AI transformation fundamentals
- Trusted data, operational systems, domain engineers, and governance, security, and traceability