How Al and IoT Are Reshaping Electronic System Design and Manufacturing

India’s electronic system design and manufacturing sector is in the midst of a profound transformation driven by artificial intelligence (AI) and the Internet of Things (IoT).

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The country’s ambition to reach a USD 400-billion electronics production target by 2025 underscores the strategic importance of the industry, but the real accelerants are intelligent technologies that compress design cycles, connect machines and unlock new efficiencies. These advances are turning India from a low-cost manufacturing hub into a centre of high-technology innovation and production.

India’s engineering community already plays a pivotal role in global semiconductor design. Roughly one-fifth of the world’s VLSI design engineers work in the country and about 250 semiconductor design companies operate here. Collectively, they employ around 24 000 engineers who have designed more than 2 000 chips, powering devices from smartphones to automotive control units.

AI-driven electronic design automation (EDA) tools have revolutionised this process. Where engineers once relied on iterative simulations and manual checks, AI algorithms now simulate millions of chips and circuit board permutations, identify potential bottlenecks and optimise power, performance and cost in a fraction of the time. This acceleration means that design teams can explore more complex architectures and innovate faster than competitors who still rely on largely manual processes.

Generative AI takes this a step further. Rather than simply automating existing workflows, generative models propose entirely new circuit layouts based on desired performance characteristics. Engineers then evaluate these proposals, acting more like curators of machine-generated ideas than draughtsmen. The impact of AI extends beyond design into the heart of manufacturing. Modern factories are no longer collections of isolated machines; they are interconnected ecosystems where every motor, sensor and the controller communicate in real time.