The computer chip industry, a complex global ecosystem valued at half a trillion dollars, relies on a handful of fabrication foundries (fabs) that play a pivotal role. Amid a severe chip shortage, these fabs are under renewed focus. As India aspires to become a $5 trillion economy and strives for self-reliance, it seeks to integrate into the semiconductor industry. With a robust ecosystem of fabless companies excelling in chip design, India is positioning itself in the intricate landscape of semiconductor manufacturing. The semiconductor industry comprises companies that design, fabricate, assemble, test, and supply semiconductors that are suitable for various applications. While India has been strong in design, the country would be making strides in fab manufacturing. In December 2021, the Indian government earmarked INR 2,30,000 crore to position India as global hub for electronics manufacturing with semiconductors as the foundational building block. An outlay of INR 76,000 crore was allocated for the development of semiconductors and display manufacturing ecosystem in India.
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