India's chip challenge: To build at home, we must invest abroad

We must mobilize private capital to invest in technology leaders and gain board influence globally

- NILESH JASANI

When Prime Minister Narendra Modi in his Independence Day address spoke of a Made-in-India semiconductor chip becoming a reality, he was articulating more than an industrial goal. He was defining a new pillar of national security. In a world fractured by geopolitics, the ability to not just use but to influence and control the technology that powers our future is a matter of sovereignty. He recalled how past efforts to build chip manufacturing were blocked. India has identified this as a challenge and committed itself to the arduous journey of semiconductor self-sufficiency.

Initial steps are underway. Across India, a concerted policy push is taking shape. The government launched the India Semiconductor Mission in 2021 to create a full ecosystem. Policies offer production-linked incentives and 50% capital aid for components and chips. To begin with, the plan is to make less advanced nodes, focusing on packaging and testing operations, where barriers are lower. While incentives were used to draw private firms, events were hosted to attract foreign companies with technology and funds, even as talent is being developed through educational and skilling plans. Now we must align the efforts of the Centre and states for fast action.

We have seen the foundation of a landmark fabrication plant by the Tata Group in Gujarat and a major packaging facility by Micron taking shape in Sanand. Each of these conventional steps is essential. They must all be pursued with relentless focus and flawless execution.