NEW DELHI — India is increasingly positioning itself as a key player in the global semiconductor ecosystem, leveraging its deep engineering talent and expanding chip design capabilities even as advanced manufacturing remains concentrated in other parts of Asia, according to a new industry report.
While countries such as Taiwan and South Korea continue to dominate semiconductor fabrication, and Japan remains a leader in materials and equipment, India is gaining traction in the design and engineering segments of the chip value chain.
Experts say the country’s competitive advantage lies in its human capital, particularly in integrated circuit design and related engineering disciplines. India is estimated to account for nearly 20 percent of the world’s IC design workforce, supported by a steady pipeline of engineering graduates each year.
Global technology companies including Intel, NVIDIA, and Qualcomm have established major research and development centers across India, employing thousands of engineers. These teams focus on chip design, verification, and embedded systems, enabling companies to scale operations efficiently while managing costs.
Although India is still in the early stages of developing high-end semiconductor fabrication capabilities, it has begun targeting midstream segments of the supply chain, including assembly, testing, marking, and packaging (ATMP). This strategy allows the country to integrate more quickly into the global semiconductor ecosystem while laying the groundwork for more advanced manufacturing in the future.
One notable example is Micron Technology, which is investing $2.75 billion to build an ATMP facility in the western state of Gujarat.
The Indian government is also accelerating efforts to strengthen the sector through policy initiatives. Under the India Semiconductor Mission 2.0, authorities are working to expand design capabilities, support startups, and build a more resilient semiconductor ecosystem.
A key component of the initiative is the Design Linked Incentive (DLI) Scheme, which provides financial support along with access to critical tools and infrastructure for chip design and development.
At the same time, global companies are showing growing confidence in India’s semiconductor ambitions. Taiwan-based Powerchip Semiconductor Manufacturing Corporation has partnered with Tata Electronics to develop the country’s first commercial wafer fabrication plant in Gujarat, with a planned investment of approximately $11 billion.
As global supply chains continue to diversify, India’s focus on design and midstream capabilities is positioning it as an increasingly important node in the evolving semiconductor landscape. (Source: IANS)
