Semiconductors power everything from smartphones to AI servers to electric vehicles. Global supply chains are under stress, and India aims to play a bigger role in this trillion-dollar industry.
Growth Drivers
- Government support: $10B+ semiconductor mission to boost local manufacturing
- Rising demand: Electronics, EVs, and AI data centers need local supply
- Strategic advantage: India’s scale and geopolitical shifts make it an attractive destination
Challenges
- High capital costs: Setting up fabs requires billions with uncertain returns
- Skill gaps: Strong design talent exists, but manufacturing expertise is limited
- Infrastructure needs: Reliable power, water, and logistics are essential
Long-Term Outlook
- India will likely start with assembly, testing, and packaging (ATMP) before moving into advanced fabs
- Partnerships with global players like TSMC and Micron will be key
- Success could position India as a regional semiconductor hub within a decade
Why it matters
Chips are the backbone of the digital economy. India’s success is not just about technology, but supply chain security, jobs, and global competitiveness.
Can India realistically become a global semiconductor player? Share your thoughts in comments.