India aims for a seat at the global chip table
India is signaling a decisive push to become a cornerstone of the global semiconductor supply chain. At the World Economic Forum in Davos, government officials and industry leaders showcased India’s ambitions to move from a growing market for electronics to a strategic hub for chip design, manufacturing, and packaging. The objective is clear: secure a more influential voice in global chip governance, attract investment, and reduce dependence on external suppliers for critical technologies.
What the goal looks like in practice
India’s chip ambitions are not just about producing chips but about building an end-to-end ecosystem. This means advancing design and IP, expanding local wafer fabrication capacity, improving packaging and testing capabilities, and creating a robust supply chain that can weather global shocks. The government has rolled out incentives, backed by schemes intended to attract investment and accelerate research, with a policy framework that envisions India not merely as a consumer of technology but as a producer and innovator.
Key hurdles in the way
1) Scale and capital intensity
Semiconductor fabs require enormous upfront investment and long payback periods. While India has shown political will, securing the multi-billion-dollar commitments needed to build fabrication plants and advanced packaging facilities remains a critical challenge. Private partners must be persuaded that returns justify the risk in a market where chip manufacturing is concentrated in a few global hubs.
2) Talent and ecosystem maturity
The country has a large pool of engineering talent, but chip design, process engineering, and advanced manufacturing demand decades of specialized experience. India needs to deepen its talent pipeline, expand design houses, and foster collaboration between universities, research labs, and industry to cultivate end-to-end expertise that can compete with established ecosystems in Taiwan, Korea, and the United States.
3) Global partnerships and geopolitics
Beyond domestic capacity, India’s strategy hinges on securing reliable partnerships with global chipmakers and material suppliers. Trade frictions, export controls, and the evolving geopolitical landscape can complicate long-term commitments. A successful approach will likely require a diversified supplier base and attractive terms for global collaborators seeking to coexist with India’s growing market power.
4) Supply chain resilience and policy continuity
Building a resilient chip supply chain means not just manufacturing in India but ensuring raw materials, equipment, and know-how flow smoothly. Consistency in policy support, predictable regulatory environments, and stable fiscal incentives are essential to keep long-term investments from moving elsewhere during policy shifts or market downturns.
Progress to watch
India has already launched programs to boost local electronics manufacturing, from incentives for assembly, testing, and packaging to efforts focused on research and development in semiconductors. The broader goal is to convert policy statements into real projects—fabs that produce wafers, domestic design houses exporting IP, and a thriving ecosystem that can attract global players to set up regional hubs within India.
What success could look like
Success would be measured not only by chip output in India but by strengthened resilience of global supply chains and a more balanced distribution of semiconductor activity worldwide. A robust Indian semiconductor ecosystem could attract international investment, create high-skilled jobs, and provide a testing ground for new materials and manufacturing techniques. If India can bridge the gaps in scale, talent, and partnerships, it could increasingly influence how chips are designed, manufactured, and sourced on a global stage.
Bottom line
India’s bid for a seat at the global chip table is ambitious and timely. The path forward will demand coordinated action across government, industry, and academia to overcome the capital, capability, and geopolitical hurdles. With sustained commitment, India could emerge as a meaningful and enduring player in the semiconductor world, reshaping who controls critical electronics infrastructure in the next decade.
