Archive · 30 Oct 2025
Smaller Chip Firms Hit Hardest by Geopolitical Issues, Says embedUR CEO
Imagine the world of computer chips as a big playground.
Some companies make giant, super-fast slides (like Nvidia and AMD) that lots of people want to use, so they are doing great.
But other companies make smaller, simpler swings and see-saws.
These smaller companies are finding it harder to play because of world problems like disagreements between countries and rising prices.
This makes it tough for them to grow and make money.
The CEO of a company called embedUR systems thinks these problems will get better in about a year and a half.
His company makes software for chips in everyday things like smart medical devices and tractors and is growing, but he knows it's harder for smaller chip companies to survive these tough times.
He also thinks that while India will make a lot of chips, the really big profits will still be made in places like the US and Europe.
embedUR systems CEO Rajesh C. Subramaniam states smaller chip companies are disproportionately affected by geopolitical tensions and economic challenges.
Global chip market expected to stabilize by the quarter ending March 2026.
Large companies like Nvidia and AMD are thriving due to their hyperscale computing capabilities.
India's chip market is poised for volume growth but faces price sensitivity and lower margins compared to global peers.
embedUR systems, specializing in Edge AI and IoT, is experiencing growth and plans significant investment in India.
- Who
- Rajesh C. Subramaniam, Founder and CEO of embedUR systems
- What
- Discussed the impact of geopolitical tensions and economic headwinds on the chip market, especially for smaller players.
- When
- Published on October 29, 2025. Projections extend to Q1 2026.
- Where
- India's chip market, global markets (US and Europe)
- Why
- To highlight the disproportionate impact of global economic and geopolitical factors on smaller chip solution providers compared to hyperscale chipmakers.
Hyperscale Chipmakers
Smaller Chip Solutions Providers
Impact of Geopolitical Tensions & Economic Headwinds
Hyperscale Chipmakers
Thriving due to their ability to offer hyperscale compute.
Smaller Chip Solutions Providers
Going through a rough patch and are more impacted.
Profit Pools
Hyperscale Chipmakers
Concentrated in high-value markets (US and Europe).
Smaller Chip Solutions Providers
Margins are lower, and profit pools are expected to remain concentrated elsewhere.
- Company
- embedUR systems
- CEO
- Rajesh C. Subramaniam
- Location
- Silicon Valley and Chennai
- Specialization
- Edge AI, embedded systems, IoT solutions
- Projected Employee Strength
- 600-700 by end of year