We have started. But India is a late starter.
Singapore was not bogged down by limitations. It has no adequate domestic market, but it has carved niches in chip design. India has a lot of catching up to do in Information Communication and Technology (ICT).
India is one of the world’s largest consumers of electronics, but it has no local chip industry and plays a minimal role in the global supply chain. New Delhi’s “Semiconductor Mission” aims to change that.
Hence, it is a high ambition and detractors may call it 'over' too.
China's State Administration for Market Regulation (SAMR) claimed authority over Intel’s proposed acquisition of Tower Semiconductor, withholding approval until the deal collapsed — retaliation for US sanctions. Japan is trying to reinvent its role in the technology era.
Australia has poured a billion dollars into PsiQuantum and seeded dozens of start-ups and South Korea is famous for Samsung and SK Hynix into semiconductor titans.
In India at least 10 semiconductor projects are currently underway across six states. A whopping investment of $18.2 billion is on cards. The country wants to reduce dependence on imports.
But experts say neither the country's investment nor talent pool is enough to make India's chip ambitions a reality.
The Govt will have to do something more to secure chips for strategic sectors, and capture a bigger share of the global electronics market shifting away from China.
The fact of the matter is until now the desi chipmakers had no local demand for their product as there are hardly any electronic component manufacturing companies.
Only in May-June 2025, the central government added a new element to its chip ambition:
--- A scheme to support electronic component manufacturing, addressing a critical bottleneck.
And the good news is Fab companies from Taiwan and the U.K., and semiconductor packaging companies from the U.S. and South Korea have all shown interest in aiding India’s semiconductor ambitions.
But analysts do point out the lapses and rightly so:
"Our IT services companies have outstanding master craftsmen and super-skilled builders for global businesses but we are seen as absent at the foundations — the semiconductors, systems and infrastructure that power the digital age,"
- noted former foreign secretary Nirupama Rao in a newspaper article.
****
Extra info:
In China, Huawei and Alibaba are developing AI chips to rival Nvidia and have stepped up domestic manufacturing in recent years. According to reports, Alibaba’s AI chip could rival the performance of Nvidia’s H20 chips designed for the Chinese market.
In the past year, at least two companies--C2i Semiconductors and Agrani Labs--have started developing AI computing chips in India, drawing investor interest.
The Journey ::: Under Modi Govt
2021: Union Cabinet approved the India Semiconductor Mission (ISM) with a ₹76,000 crore outlay to boost fabrication, design, and manufacturing.
2023–2025: Rapid setup of major facilities by domestic and foreign firms with significant investments. Total approved projects under ISM reaches to 10 with cumulative investments of around Rs.1.60 lakh crore in 6 states.
2025: India inaugurated its first centers for advanced 3-nanometer chip design in Noida and Bengaluru, an Indian first.
At the Global Investors Summit 2025, it was announced that India's first indigenous semiconductor chip would be ready for production this year. Five production units are under construction, signalling a significant milestone for domestic capability.
Madhya Pradesh has made a significant stride in the IT and electronics sector with the inauguration of its first IT campus, backed by an investment of ₹150 crore over the next six years.
In July 2025, Netrasemi, a startup supported under the government’s chip design scheme, has received Venture Capital (VC) investment of ₹107 crore. The company is working on making chips for smart vision, CCTV cameras, and Internet of Things (IoT) applications.
In fabrication, India is moving from traditional Silicon based semiconductors to the latest Silicon Carbide based semiconductors. In design, the roadmap is to introduce the more advanced 3D Glass packaging technology. Such technology is critical for sectors like defence systems, missiles, radars & rockets in space.
No comments:
Post a Comment