
India’s Semiconductor Moment: From Chip Design Powerhouse to Global Manufacturing Hub For decades, India was exceptionally good at designing technology — but much of the physical hardware powering that technology was manufactured somewhere else. That equation is beginning to change. India’s semiconductor strategy is moving from design and engineering capability toward fabrication, assembly, testing, packaging and eventually a more complete domestic supply chain. The transition is being driven by government incentives, multinational investment, Indian companies, a large engineering talent base and a global effort to diversify semiconductor manufacturing. The timing is significant. Artificial intelligence, electric vehicles, smartphones, defence systems, data centres, telecom networks and industrial automation are all increasing demand for chips. At the same time, geopolitical tensions have exposed how vulnerable the world can be when critical components are concentrated in a relatively small number of manufacturing locations. India wants to become one of the places the world can turn to. But becoming a semiconductor power is considerably harder than announcing one. From consumer to creator A May 2026 NITI Aayog roadmap describes semiconductors as strategically important not only for economic growth but also for national security and technological autonomy. The report estimates that India’s semiconductor market could reach
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