India’s Semiconductor Moment: From Dependence to Self-Reliance

For years, India has been called the software capital of the world. Our engineers, IT firms, and start-ups have made us a global force in information technology. But there has always been one missing piece in this puzzle—the hardware that powers this digital revolution. Semiconductors, the tiny chips that drive our smartphones, cars, laptops, satellites, medical devices, and even household appliances, have largely been imported. For a nation of 1.4 billion people aiming to be a $5 trillion economy, this dependence is both a risk and a lost opportunity. Today, however, India finds itself at a turning point where semiconductors are no longer a distant dream, but a serious priority shaping our future.

Semiconductors are often called the “oil of the digital age.” Just as oil powered industries in the last century, chips power everything in today’s world. Without them, no country can claim true technological independence. The COVID-19 pandemic made this clearer than ever before. When supply chains broke down and chip shortages hit the auto and electronics industries, India felt the heat. Car manufacturers had to slow production, mobile companies delayed launches, and prices of electronics soared. At that moment, it became obvious that India could not continue to depend only on Taiwan, South Korea, and China for semiconductors. If India wants to be a leader in the 21st century, we must have our own capacity to design, manufacture, and innovate in this field.

The Indian government has already begun moving in this direction. Under the “India Semiconductor Mission” launched in 2021, nearly $10 billion in incentives have been announced to attract global chipmakers and to build a semiconductor ecosystem at home. This is not just about one factory or one company—it is about creating an entire chain from design to manufacturing to packaging. Global giants like Foxconn, Vedanta, and Micron have already shown interest. Micron, for example, announced a large assembly and test facility in Gujarat, a move that signals confidence in India’s potential. For decades, India was only a consumer of chips. Now, for the first time, the country is positioning itself as a producer.

But why is this so important right now? The answer lies in the changing global order. The world is moving towards “friend-shoring”—a term that means countries prefer to build critical supply chains with trusted partners rather than depend on rivals. With rising tensions between the US and China, and with Taiwan’s vulnerability in global politics, the world is looking for a stable, democratic, and skilled partner. India fits that role perfectly. We have a large pool of engineers, strong IT talent, a fast-growing electronics market, and a government that is willing to invest big in the sector.

Of course, building a semiconductor industry is not as easy as writing code. It is one of the most complex industries in the world, requiring precision, huge capital, and advanced research. A single fab (fabrication plant) can cost anywhere between $7 to $20 billion and takes years to build. Moreover, India does not yet have the deep infrastructure, steady power supply, or water resources that these fabs demand. But this does not mean we cannot succeed. Every global power in semiconductors—whether it is Taiwan or South Korea—started with government support, patience, and persistence. India, too, has to see this as a long-term mission, not a short-term race.

One strength India already has is in chip design. Many of the world’s top semiconductor firms—Intel, Qualcomm, Texas Instruments, AMD—run large design centers in India. In fact, nearly 20 percent of the world’s chip design engineers are based in India. This is a huge advantage because it means our engineers are already shaping the brains of modern technology. If we can now combine this design expertise with manufacturing capacity, India can become a true global hub.

Semiconductors are not just about gadgets; they are about national security. Modern warfare depends on advanced chips that power missiles, drones, communication systems, and satellites. No country that wants to be a global power can rely only on imports for such a critical need. This is why India’s semiconductor push is not just about the economy—it is also about sovereignty. Having our own semiconductor capacity will make us less vulnerable to external pressures and give us more control over our future.

In recent months, we have seen India actively working with partners like the United States, Japan, and Europe in the field of semiconductors. Under the Quad partnership, India is being seen as a crucial link in diversifying supply chains away from China. The US has also signed agreements with India to boost cooperation in semiconductor research and development. These are not small steps; they represent a major shift in how the world views India’s role in the global technology map.

At the same time, challenges remain. Building fabs requires not just money but also trained manpower, strong supply chains of chemicals and equipment, and world-class research institutions. India will need to train thousands of engineers specifically in semiconductor manufacturing, not just in IT coding. Universities and private industry will have to collaborate to create a strong research base. There is also the challenge of global competition—every country today wants to attract chipmakers. From the United States with its CHIPS Act to Europe with its funding programs, India will have to prove that it can offer not just incentives but also stability, skilled manpower, and long-term commitment.

Despite these hurdles, the mood in India is one of optimism. If we could once build a space program from scratch and now send missions to the Moon and Mars at a fraction of the global cost, we can also build a semiconductor ecosystem with the right vision. The next decade is crucial. Whether it is artificial intelligence, 5G and 6G networks, electric vehicles, or renewable energy systems, semiconductors will be the foundation. If India can establish itself in this field, the benefits will be enormous—not just in terms of self-reliance, but also in creating jobs, boosting exports, and cementing our place as a global technology leader.

India has missed some opportunities in the past, but the semiconductor revolution is one we cannot afford to miss. It is not just about chips; it is about the future of India’s economy, security, and global standing. This is our semiconductor moment. The question is whether we will seize it with determination and foresight.