India's Ambitious Leap into the Semiconductor Industry

Thu Jan 29 2026 20:17:56 GMT+0200 (Eastern European Standard Time)

Can India transform its vast talent pool in semiconductor design into a robust manufacturing sector? Experts weigh in on the challenges and ambitions driving this crucial technological shift.

India has the potential to establish itself as a competitive player in the semiconductor industry, leveraging its design expertise and a growing local supply chain. However, significant challenges remain in manufacturing capabilities and workforce training following supply chain disruptions during the COVID-19 pandemic. Companies like Tejas Networks and Kaynes Semicon are leading efforts to develop local semiconductor manufacturing, focusing initially on packaging and testing.

A reliable supply of computer chips is essential for Arnob Roy, the co-founder of Tejas Networks.

His company, based in Bangalore, India, supplies the equipment behind mobile phone networks and broadband connections, which relies on chips specifically designed for telecom tasks.

India boasts a significant pool of semiconductor experts, with an estimated 20% of the world's semiconductor engineers based there, yet the country's manufacturing capabilities remain underdeveloped.

The COVID-19 pandemic exposed the vulnerabilities in India's reliance on overseas semiconductor fabrication, prompting government initiatives to establish a local semiconductor ecosystem.

Efforts are underway to develop manufacturing facilities, such as Kaynes Semicon, which has launched a semiconductor assembly and testing plant in Gujarat. The Indian government's commitment to this sector aims to enhance self-reliance in technology.

While challenges exist in terms of skill development and capital investment, the outlook for India's semiconductor manufacturing industry appears promising as companies begin to establish a local supply chain.