Inside India’s Bold Semiconductor Push

India is making bold moves to become a major force in the global semiconductor industry. This shift is driven by the country's desire for economic growth, technological independence, and stronger national security. Semiconductors, tiny chips that power everything from smartphones and cars to medical devices and data centers, are essential to modern life. As India's electronics and tech industries grow, so does the demand for these critical components. Why India Needs a Strong Semiconductor Sector Currently, India imports more than 90% of its semiconductor needs. This heavy dependence on imports creates several risks. It makes the country vulnerable to global supply chain disruptions, like the chip shortage during the COVID-19 pandemic. It also affects national security, limits innovation, and increases economic strain. To reduce these risks and keep up with growing demand, India is focusing on building a self-reliant semiconductor ecosystem. Government Push The Indian government is taking serious steps to change the country's semiconductor landscape. At the center of this effort is the India Semiconductor Mission (ISM), a $10 billion initiative aimed at building a strong ecosystem for chip manufacturing and design. This mission is supported by additional programs like the Production Linked Incentive (PLI) and Design Linked Incentive (DLI) schemes, which encourage companies to invest in India. The ISM is working to: Set up fabrication units (fabs) for chip production Build chip design and packaging capabilities Boost R&D and innovation Create skilled jobs in the semiconductor field Reduce dependency on imports Big Investments and Global Partnerships India's efforts are already showing results. Several major companies have announced big investments in semiconductor manufacturing and packaging. For example: The Tata Group, in partnership with Taiwan's PSMC, is building a ₹91,000 crore chip fab in Gujarat. Micron Technology is investing $2.75 billion in an assembly, testing, marking, and packaging (ATMP) facility. Other players like Adani Group, HCL-Foxconn, and Kaynes Technology are launching similar projects across India. In addition, global tech leaders such as Samsung, NXP, and LT are investing heavily in R&D in India, helping the country move forward in areas like advanced chip design, 2D materials, and AI-powered chips. India is also hosting major events like Semicon India 2025, inviting international experts and investors to explore business opportunities in the Indian semiconductor space. Opportunities Several global trends are helping India's semiconductor dream take shape: Rising demand for 5G smartphones, electric vehicles, and industrial automation Growth in AI, cloud computing, IoT, and automotive electronics Need for supply chain diversification due to global tensions and the US-China tech rivalry. As countries look for alternatives to China, India is positioning itself as a trusted partner, backed by a large talent pool and a fast-growing tech market. Challenges Despite this progress, India still faces significant challenges. The country lacks advanced chip fabs and a complete supply chain, especially in areas like silicon wafer production and photolithography. Infrastructure gaps, such as the need for ultra-pure water and steady power, also create hurdles. The high cost of building fabs makes private investment difficult, and there's a shortage of skilled professionals in microelectronics and materials science. Environmental concerns are another issue, as chip manufacturing uses a lot of energy and produces hazardous waste. On top of that, India still has a long way to go in hardware R&D and must work closely with global partners to bridge technology gaps. India's journey into the semiconductor world is just beginning. With strong government support, growing global interest, and major investments, the country is well on its way to becoming a key player in the global chip supply chain. Building a resilient, innovative, and self-reliant semiconductor ecosystem will not only boost India's economy but also secure its place in the future of global technology.