Key Points

The country is aiming to build capacity in the 28nm to 65nm range, which is widely used in sectors like automotive, telecom, and industrial electronics.

According to a detailed analysis by Bastion Research, India’s approach is a smart move, as it positions the country to fill a critical gap in the global chip supply chain.

While giants like TSMC and Samsung dominate the advanced nodes of 5nm and 3nm, India is building its strength in the mature nodes that are essential for high-demand industries.

The report compared India’s current stage to Taiwan and South Korea’s semiconductor journey in the 1970s to 1990s.

The analysis further pointed out that India’s role in system integration within the semiconductor value chain is evolving rapidly.

With a strong pool of talent and growing ecosystem, India is excelling in integrating semiconductor components into advanced systems for industries such as automotive electronics, consumer devices, telecommunications, and medical technologies.

The report noted that India already delivers world-class integration services and is steadily scaling up operations to meet global demand.

The global “China +1” strategy is also working in India’s favour.

As companies diversify their supply chains away from China, India is increasingly being seen as a reliable and cost-effective partner.

This trend is expected to help India capture a bigger share of the global semiconductor market.

To support this ambition, the Indian government launched the Rs 76,000-crore Semicon India Programme in 2021, offering incentives to attract global chipmakers, set up fabs, packaging units, and build a local supply chain.

The focus for now remains on mature-node fabs rather than the advanced bleeding-edge chips.

Progress on the ground is also picking up. Earlier this month, the government approved four new semiconductor projects worth Rs 4,600 crore in Odisha, Andhra Pradesh, and Punjab.

With these, the India Semiconductor Mission (ISM) now has 10 projects across six states, with a combined investment of Rs 1.6 lakh crore.

Prime Minister Narendra Modi, in his Independence Day address, reaffirmed the government’s commitment, announcing that made-in-India semiconductor chips will be available in the market by the end of this year.

So far, six semiconductor plants have already been approved, marking a significant milestone in the country’s technological journey.

Experts say India may not be competing with global leaders in advanced chipmaking just yet, but its focus on mature nodes and system integration is positioning it as an important player in the global supply chain, ready to serve industries with high-volume, essential chips.

- IANS