India may have been a late entrant into the global semiconductor race, but its ambitions are as expansive as they are achievable. Armed with a strategic mix of policy reforms, innovation, and a burgeoning talent pool, the country is gearing up to position itself as a key player in the global semiconductor ecosystem. This sentiment dominated discussions at the 38th International Conference on VLSI Design, held recently in Bengaluru.
Speaking to Business Today on the sidelines of the event, Prof. Satya Gupta, President of the VLSI Society of India, acknowledged that India’s immediate contribution to the global semiconductor market might be modest. However, he emphasized the long-term vision, which aligns with the India@2047 mission. “We are targeting a 20-25 per cent share in the global semiconductor value chain,” Gupta said, underscoring 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, the policy not only put semiconductors at the heart of India’s economic agenda but also ensured clarity and support across the ecosystem—from manufacturing to talent development.
Currently, five major manufacturing projects have been greenlit, 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 groundwork for a robust semiconductor manufacturing ecosystem.
Hitesh Garg, Vice President and India Country Manager at NXP Semiconductors, noted that while the manufacturing ecosystem is taking shape, establishing and operating wafer fabrication plants (fabs) remains a significant hurdle. “Fabs are capital-intensive, and India is still in the early stages of developing its first major fabs. While several ATMP (Assembly, Testing, Marking, and Packaging) facilities are underway, scaling them to global standards is still a work in progress,” he explained.
Garg also highlighted the need for a broader focus beyond manufacturing. “India must focus on developing use cases and integrating semiconductor innovations into electronic systems for global markets,” he added, pointing to the importance of creating end-to-end solutions.
India’s ambitions in semiconductors 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, pointed out 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 demands sustained investment and effort over decades.
Drawing parallels with Taiwan, Miller noted that it took over 50 years for the island nation to establish itself as a global leader in semiconductors. “India’s strongest foothold lies in chip design, which is a critical component of the semiconductor value chain,” he said. Miller also pointed to advancements in AI, which are expected to accelerate chip design processes and position India as a hub for design innovation.
As India charts its course in the semiconductor sector, the road ahead is laden with both challenges and opportunities. With the right mix of policy, global partnerships, and a focus on design excellence, the country may well realise its ambitious vision for 2047.