India may have been a late entrant to the global semiconductor race, but its ambitions are as expansive as they are achievable. Armed with a strategic combination of policy reforms, innovation and a growing talent pool, the country is poised to position itself as a key player in the global semiconductor ecosystem. This sentiment dominated discussions at the 38th International Conference on VLSI Design, held in Bangalore recently.

Speaking to Business Today on the sidelines of the event, Professor Satya Gupta, president of the VLSI Society of India, acknowledged that India’s immediate contribution to the global semiconductor market could be modest. However, he highlighted the long-term vision, which aligns with the India@2047 mission. “We are aiming for a 20-25 percent share in the global semiconductor value chain,” Gupta said, underscoring the country’s ambitious targets.

The transformation of India’s semiconductor landscape began in earnest in early 2022 when the government launched a comprehensive semiconductor policy. Backed by strong political will, the policy not only put semiconductors at the center of India’s economic agenda, but also ensured clarity and support across the ecosystem, from manufacturing to talent development.

Currently, five major manufacturing projects have been given the green light, including collaborations between Tata Group, Kaynes Semicon Pvt Ltd, CG Power, Micron and TSMC. These projects bring together a mix of national and global players to lay the foundation for a robust semiconductor manufacturing ecosystem.

Hitesh Garg, Vice President and Country Director, India, NXP Semiconductors, noted that while the manufacturing ecosystem is taking shape, setting up and operating wafer fabrication plants (fabs) remains a major hurdle. “Fabs are capital intensive and India is still in the early stages of developing its first large fabs. Although several ATMP (assembly, testing, marking and packaging) facilities are underway , scaling them up to global standards is still a work in progress,” he explained.

Garg also emphasized the need for a broader focus beyond manufacturing. “India needs to focus on developing use cases and integrating semiconductor innovations into electronic systems for global markets,” he added, noting the importance of creating end-to-end solutions.

India’s semiconductor ambitions come at a time when the global chip industry is struggling with technical complexities, high capital requirements and intense competition. Chris Miller, professor of international history at Tufts University’s Fletcher School and author of the book Chip War, noted that these challenges are not unique to India. “The sector is characterized by extraordinary technical complexity, high capital intensity and relentless competition,” he said, adding that building a comprehensive ecosystem requires sustained investment and effort over decades.

Drawing parallels with Taiwan, Miller noted that it took the island nation more than 50 years to establish itself as a world leader in semiconductors. “India’s strongest base is in chip design, which is a critical component of the semiconductor value chain,” he said. Miller also pointed to advances in AI, which are expected to accelerate chip design processes and position India as a hub for design innovation.

As India charts its course in the semiconductor sector, the road ahead is fraught with challenges and opportunities. With the right mix of policies, global partnerships and a focus on design excellence, the country can make its ambitious vision for 2047 a reality.