Unveiling the Inflection Point: The Fusion of AI and Silicon with Lessons for Enterprises | Tech Mahindra

Unveiling the Inflection Point: The Fusion of AI and Silicon with Lessons for Enterprises

Semiconductor chips, purpose-built for AI, are veritable workhorses. They help benchmark the highest standards of business performance. In fact, AI algorithm-driven digital transformation, built on silicon, can potentially impact all aspects of human life. Not surprisingly, the AI chips market is projected to be valued at over 60+ billion by 2024. This growth is fueled by the increasing demand for smart homes, autonomous vehicles, and personalized healthcare, all of which rely on AI chips to process vast amounts of data in real-time. As industries continue to harness the power of AI, the efficiency and capabilities of these chips are expected to evolve, leading to more sophisticated applications. From enhancing cybersecurity to advancing robotics, AI chips are at the forefront of innovation, driving progress in ways previously unimaginable. By 2024, it's anticipated that AI chips will not only be more powerful but also more accessible, paving the way for widespread adoption in various sectors and making technology more inclusive.

AI-Silicon Integration: Empowering Communities and Enterprises

Because AI-silicon technology stacks have garnered immense value, companies go to extraordinary lengths to safeguard them. But why exactly are these chips deemed so valuable? What distinguishes them in today's technological landscape?

The answer lies in the ability of AI chips to unlock multiple benefits to communities and enterprises.

1. Uphold sustainability through chip design optimization: Data centers consume significant energy. A hyperscaler's data center uses power equivalent to that of 80,000 households. Tightly stacked servers can help to optimize square footage usage, but this can result in overheating and downtime. Organizations circumvent this issue by using massive quantities of water for cooling purposes. In fact, about 40% of a data center's energy consumption is attributed to cooling.

Sustainability is both a business and ethical imperative that has become central to how enterprise leaders make decisions. As AI processing advances rapidly and silicon becomes increasingly integrated into data center infrastructure, companies are investing their intellectual and monetary resources looking for ways to minimize power consumption metrics while maximizing performance.

In the US alone, the demand for data centers, measured by power consumption related to server capacity, is expected to reach 35 gigawatts (GW) by 2030. This is where AI-chip design optimization comes into play. Employing ML and AI algorithms, our design initiatives are centered on reducing chip nanometer pitches. If the focus was previously on shrinking data center size by reducing racks, the attention has now shifted to sustainably optimizing processing power. In terms of design optimization, our engineers come with decades of deep domain knowledge. Thousands drive our design advancements with a single-minded focus: Optimizing chip design for energy efficiency and next-gen computing.

2. Enhance manufacturing precision: Consumer use of complex semiconductor chips has surged in the past decade. This rising use of electronics has triggered significant transformations in the automotive, industrial, and healthcare sectors. Within the automotive industry, AI chipsets have a critical role to play. They support precision manufacturing, notably in developing driverless cars with L5 autonomous technology. Here too, Tech Mahindra acts as an intermediary between silicon companies and such enterprises. We facilitate the creation of use cases for emerging technologies. By implementing well-trained algorithms, such as temperature and pressure control and material consumption, we improve precision in manufacturing operations.

3. Facilitate predictive maintenance: Rising chip prices can render defect management expensive. Reports indicate that in 2024, 12-inch wafer prices will exceed $200 for the first time. The industry anticipates a further price hike of 20-25% till 2025. Employing AI algorithms for the predictive maintenance of sophisticated manufacturing equipment ensures the integrity of the value stream for equipment manufacturers, fabricators, and silicon companies. It provides indications well in advance through changes in performance, power surges, and equipment movements. Tech Mahindra’s proof of concepts (POCs) and AI-led frameworks can analyze these parameters through image processing and sensor technologies. We build them into your underlying systems.

4. Support supply chain management: Addressing supply chain complexities—including seasonal fluctuations and demand forecasting—through ML algorithms enhances supply chain resilience and inventory management. However, supply-and-demand imbalances in the semiconductor industry have created production challenges for enterprises. Studies reveal that a staggering 80% of companies are ill-equipped to address chip shortages. In response, Tech Mahindra is spearheading the design of new chips at the architecture level. We are well-positioned to meet the dynamic demands of the evolving semiconductor landscape.

5. Enable quality control: Leveraging AI algorithms for quality control purposes, including image processing and sensor analytics, supports defect detection at various stages of chip development. From design to shipment, AI chips can monitor and manage these production processes. Unsurprisingly, chip production is projected to surge. Every three years, new semiconductor chips are expected in the market. This indicates that AI technologies are not eliminating positions. Contrary to popular perception, they are expanding the need for skilled human talent for chip development. Here too, Tech Mahindra is investing in its greatest asset: its people. Our upskilling-as-a-service (UaaS) platform offers personalized training opportunities in self-service mode with AI-based features.


The fusion of artificial intelligence with semiconductor technology heralds a new era of innovation and efficiency across industries. As AI-silicon integration becomes increasingly pervasive, its impact on communities and enterprises is profound and far-reaching. From optimizing chip design for energy efficiency to facilitating predictive maintenance and enhancing supply chain management, the transformative potential of AI-driven solutions knows no bounds. Tech Mahindra stands at the forefront of this technological revolution, leveraging decades of expertise to empower organizations worldwide.AI-embedded semiconductor chips are reshaping the future of business. They are fueling digital transformation by boosting efficiency, optimizing decision-making, and fostering innovation across industries. Looking ahead, the trajectory of AI-silicon integration promises continued advancements and opportunities for growth. As Tech Mahindra remains dedicated to pushing the boundaries of innovation, we are poised to lead the charge in harnessing the full potential of AI-driven semiconductor solutions. By investing in our people and leveraging cutting-edge technologies, we will continue to drive value for our partners and stakeholders, shaping a future where intelligence and efficiency converge seamlessly to address the challenges of tomorrow.

About the Author
Ateet Dhawan
Ateet Dhawan
Senior Vice President and Business Head - Semicon and Hi-Tech, Tech Mahindra

Ateet Dhawan, is the Senior Vice President and Business Head - SemiCon and Hi-Tech at Tech Mahindra, boasts a rich professional journey spanning over 22+ years in the industry. With a robust background in navigating diverse geographies and spearheading strategic initiatives, Ateet’s expertise is widely recognized.


Ateet Dhawan, is the Senior Vice President and Business Head - SemiCon and Hi-Tech at Tech Mahindra, boasts a rich professional journey spanning over 22+ years in the industry. With a robust background in navigating diverse geographies and spearheading strategic initiatives, Ateet’s expertise is widely recognized.

At present, Ateet leads growth initiatives for practice build-up for the semiconductor vertical and strategic accounts at Tech Mahindra. Based in the Bay Area, US, he strategically strengthens partnerships across the value chain of semiconductors, driving innovation and fostering collaboration. Additionally, Ateet will be actively strengthening Tech Mahindra’s association with key industry forums globally.

In his previous role as Chief Transformation Officer at Tech Mahindra, Ateet distinguished himself by orchestrating impactful business transformations, optimizing processes, and driving sustainable growth. His strategic acumen and visionary leadership have been pivotal in steering the organization towards success.

Ateet is also an avid reader, and some of the books that have left a high impact on him include “Wings of Fire”, an autobiography by APJ Abdul Kalam, “It Worked for Me - In Life and Leadership” by Colin Powell, and “Extreme Ownership” by Jocko Willink and Leif Babin. Ateet’s academic credentials, including an MBA from the University of East London and a Business Management Certification from Harvard Business School (HBS), further validate his strategic prowess and leadership capabilities.