Major technology boost: India emerges as a key player in the global chip supply chain shift

New Delhi: India is fast emerging as a semiconductor design hub in the evolving global chip supply chain, driven by its deep engineering talent pool and expanding chip design capabilities, according to a report by Directus.

While countries such as Taiwan and South Korea continue to dominate advanced semiconductor manufacturing through large-scale fabrication plants, and Japan leads in materials and equipment, India is carving out a strong position in the chip design and engineering segment of the semiconductor ecosystem.

India’s strength in semiconductor design talent

India’s competitive advantage lies in its human capital, particularly in integrated circuit (IC) design and semiconductor engineering. The country accounts for nearly 20 per cent of the global IC design workforce, making it a critical node in the global semiconductor value chain.

This strength is reinforced by a steady pipeline of engineering graduates and a growing base of skilled professionals in VLSI design, embedded systems and chip verification.

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Global technology firms, including Intel, NVIDIA and Qualcomm, have already established large research and development (R&D) centres in India, employing thousands of engineers. These centres focus on chip design, testing and embedded solutions, enabling cost-efficient scaling of operations.

Focus shifts to semiconductor assembly and packaging

Although India is still at an early stage in building high-end semiconductor fabrication plants, it is accelerating its presence in the midstream semiconductor supply chain, particularly in assembly, testing, marking and packaging (ATMP).

A key development is Micron Technology setting up a $2.75 billion semiconductor facility in Gujarat, marking a major step in India’s chip manufacturing ecosystem.

This phased approach allows India to integrate into the global semiconductor supply chain more quickly while gradually building capabilities for advanced fabrication.

Government push under the India Semiconductor Mission

The government is strengthening the sector through initiatives such as the India Semiconductor Mission 2.0, aimed at boosting semiconductor design, innovation and manufacturing resilience.

A central component is the Design Linked Incentive Scheme, which provides financial incentives, infrastructure support and access to design tools for startups and companies working in chip design and development.

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Global partnerships boost India’s semiconductor ambitions

Global confidence in India’s semiconductor strategy is also rising. Powerchip Semiconductor Manufacturing Corporation has partnered with Tata Electronics to establish the country’s first commercial semiconductor wafer fabrication plant in Gujarat, with an investment of around $11 billion.

As global supply chains diversify, India’s growing role in semiconductor design, ATMP services and policy support positions it as a key player in the future of the global chip industry.

IANS