Policy & funding must keep pace with our semiconductor ambitions

Domestic manufacturing of semiconductors has now entered the second phase, where the focus needs to be on design and innovation.

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Jai Chowdhry, co-founder of HCL and member, advisory committee, India Semiconductor Mission, speaks to Krishna Barot about why chip design would receive significantly more funding, how India can build an end-to-end semiconductor ecosystem, and the importance of addressing talent needs and long-term planning. Excerpts:

What is the most urgent requirement for India's semiconductor sector right now?

We must prioritize semiconductor design in Phase 2 of the mission. India has shown it can set up manufacturing and fabrication units, but our real strength lies in design. That's where we can differentiate ourselves globally. To support this, we need to ensure financial backing. I believe anything between ₹10,000 crore and ₹15,000 crore is necessary to enable startups, MSMEs (micro, small and medium enterprises), and design-focused firms to scale up. The government is upgrading institutions like the Semiconductor Laboratory in Mohali with ₹10,000 crore, which is a good step. But smaller firms don't have the support they need to take their designs forward. If we don't address this gap now, we will lose momentum.