SILICON DREAMS: India's Semiconductor Journey from Design to Fab

India's plans for semiconductors are at a turning point, with policy initiatives, private investment, and international partnerships coming together to transform its electronics landscape.

- Kaushal Dighavkar Associate Editor

From design leadership to nascent ATMP (Assembly, Testing, Marking and Packaging) prospects, the country is positioning itself to shift from being an import-based market to becoming a fulcrum in the global chip ecosystem.

Semiconductors, often called the “new oil”, form the invisible backbone of modern life. From smartphones and laptops to electric vehicles and defence systems, no technology runs without them. Yet, despite being one of the world's fastest-growing digital economies, India has historically depended almost entirely on imports to meet its semiconductor needs.

India already has strengths in chip design and electronics manufacturing. Global tech giants like Qualcomm, Intel, NVIDIA, and Broadcom rely heavily on Indian design engineers for core Intellectual Property (IP) and Electronic Design Automation (EDA). However, the country's dependence on foreign fabs for actual chip production leaves its supply chains vulnerable.

The global semiconductor shortage triggered by the COVID-19 pandemic underscored this vulnerability. Industries from automotive to telecom faced disruptions, forcing governments worldwide to rethink their reliance on concentrated chip manufacturing hubs. For India, this served as a wake-up call.

The year 2025 marks a critical inflection point. With the India Semiconductor Mission (ISM) driving policy initiatives, Tata Group announcing fab ambitions, and state governments offering incentives, the groundwork for India's semiconductor revolution is being laid. The coming decade could redefine India's role in the global electronics value chain.

India’s Semiconductor Landscape: Past and Present

India's semiconductor story has been marked by both ambition and missed opportunities. Efforts in the 1980s and 1990s to establish fabrication plants faltered due to high capital costs, lack of infrastructure, and policy inertia.