India aims to enter the Global chip business, but the competition is intense, and its entry is somewhat delayed, as compared to other countries. In 2022, the US restrained the export of its state-of-the-art AI chips to China to prevent Beijing’s access to advanced chips, marking the beginning of the actual semiconductor race.
For India, it’s an opportunity to lower its dependence on imports, gain a bigger share in the market, and move away from China while securing chips for strategic sectors. India does not have a local chip industry, but it has always been the largest consumer of electronics items. New Delhi’s ‘semiconductor mission’ is most likely to change it. The plan is clear and solid, indicating that India aims to establish a full supply chain from design to fabrication, testing, and packaging on Indian soil.
Until this month, India has accepted 10 semiconductor projects with a 1.6 trillion Rupees or $18 billion investment, including two semiconductor fabrication plants and multiple testing and packaging factories.
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However, progress so far has been inconsistent, and neither the investments nor the talent pool is big enough to make India’s chip ambitions a reality, say experts.
