India may be a latecomer to the global semiconductor race, but its ambitions are as vast as they are achievable. With a strategic mix of policy reforms, innovation and a burgeoning talent pool, the country is preparing to position itself as a key player in the global semiconductor ecosystem. This sentiment dominated discussions at the 38th International VLSI Design Conference, held recently in Bangalore.
Speaking to Business Today on the sidelines of the event, Professor Satya Gupta, President, VLSI Society of India, acknowledged that India’s immediate contribution to the global semiconductor market could be modest. However, he highlighted the long-term vision, which aligns with the India@2047 mission. “We are targeting a 20-25% share in the global semiconductor value chain,” Gupta said, highlighting the country’s ambitious goals.
The transformation of India’s semiconductor landscape began in earnest in early 2022, when the government launched a comprehensive semiconductor policy. Backed by strong political will, this policy has not only placed semiconductors at the heart of India’s economic agenda, but also provided clarity and support to the entire ecosystem, from manufacturing to talent development.
Currently, five major manufacturing projects have been given the green light, including collaborations involving Tata Group, Kaynes Semicon Pvt Ltd, CG Power, Micron and TSMC. These projects bring together a mix of domestic and global players to lay the foundation for a robust semiconductor manufacturing ecosystem.
Hitesh Garg, vice president and country head of NXP Semiconductors for India, noted that even as the manufacturing ecosystem takes shape, establishing and operating wafer fabs (fabs) remains a significant hurdle . “Manufacturing plants are capital intensive, and India is still in the early stages of developing its first large manufacturing plants. Although several ATMP (Assembly, Testing, Marking and Packaging) installations are underway, bringing them up to global standards is still a work in progress,” he explained.
Garg also highlighted the need for a broader vision beyond manufacturing. “India needs to focus on developing use cases and integrating semiconductor innovations into electronic systems for global markets,” he added, emphasizing the importance of creating end-to-end solutions.
India’s ambitions in the semiconductor sector come at a time when the global chip industry is grappling with technical complexities, high capital requirements and intense competition. Chris Miller, professor of international history at the Fletcher School at Tufts University and author of the book Chip War, emphasized that these challenges are not unique to India. “The sector is characterized by extraordinary technical complexity, high capital intensity and relentless competition,” he said, adding that building a comprehensive ecosystem requires sustained investment and effort over decades.
Drawing parallels with Taiwan, Miller noted that it took more than 50 years for the island nation to establish itself as a global leader in semiconductors. “India’s strongest foothold is in chip design, which is a critical part of the semiconductor value chain,” he said. Miller also highlighted advances in AI, which are expected to accelerate chip design processes and position India as a hub of design innovation.
As India charts its course in the semiconductor sector, the road ahead is fraught with both challenges and opportunities. With the right combination of policies, global partnerships and focus on design excellence, the country could well achieve its ambitious vision for 2047.
