Chips are not down

Despite Adani and Zoho's decision, India is on track to be embedded in the global semiconductor ecosystem

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The recent decisions by Adani Group and Zoho Corporation to call off their semiconductor manufacturing projects have sparked concern among critics, some of whom have prematurely concluded that India's ambitious ₹76,000-crore semiconductor incentive programme is floundering.

The truth is that rather than a sign of systemic failure, these decisions reflect the natural shake-out in a nascent but rapidly evolving industry, one that requires strategic depth, technological partnerships, and long-term vision. It is crucial to note that neither the Adani project nor the Zoho one had even reached the formal approval stage under the government's programme. There is a special committee tasked with evaluating semiconductor proposals as they require critical tie-ups with global technology partners, an indispensable component for success in this complex sector. The inability to secure technology partnerships was a core reason for their withdrawal, not a reflection of government policy or industry potential.