India may be a late entrant to the global semiconductor race, but its ambitions are as broad as they are achievable. Armed with a strategic mix of policy reforms, innovation and a growing talent pool, the country is gearing up to position itself as a key player in the global semiconductor ecosystem. This sentiment dominated the 38th International Conference on VLSI Design held in Bangalore recently.
Speaking to Business Today on the sidelines of the event, Professor Satya Gupta, President, VLSI Society of India, admitted that India's immediate contribution to the global semiconductor market may be modest. However, he emphasized the long-term vision that aligns with the India@2047 mission. “We are targeting a 20-25 percent share in the global semiconductor value chain,” Gupta said, underlining the country's ambitious targets.
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 not only placed 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 local and global players to lay the foundation for a robust semiconductor manufacturing ecosystem.
Hitesh Garg, vice president and country manager for India at NXP Semiconductors, noted that while the manufacturing ecosystem is shaping up, setting up and running fabs remains a significant hurdle. “Fabs are capital intensive and India is still in the early stages of developing its first major fabs. Several ATMP (Assembly, Inspection, Marking and Packaging) facilities are underway, scaling them up to global standards is still a work in progress,” he explained.
Garg also emphasized the need for a broader focus beyond manufacturing. “India should focus on developing use cases and integrating semiconductor innovations into electronic systems for global markets,” he said, pointing out 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 technological complexities, high capital requirements and intense competition. Chris Miller, professor of international history at Tufts University's Fletcher School and author of Chip War, pointed out that these challenges are not unique to India. “The sector is characterized by extraordinary technological complexity, high capital intensity and relentless competition,” he said, calling for sustained investment and effort over decades to build a comprehensive ecosystem.
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 lies in chip design, a critical component of the semiconductor value chain,” he said. Miller also pointed to advances in AI that are expected to speed up 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 fraught with both challenges and opportunities. With the right mix of policies, global partnerships and a focus on design excellence, the country can well realize its ambitious vision for 2047.