Semiconductors – India Moves Toward Design-Driven Chip Manufacturing Ecosystem
Semiconductors – India’s semiconductor industry is preparing to enter a new phase where chips designed in the country will also be manufactured domestically before being supplied to international markets. According to Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA) and SEMI India, the country is gradually building the foundation for a design-led manufacturing ecosystem.
India already plays a significant role in semiconductor design services worldwide. However, industry leaders believe the next crucial step is strengthening manufacturing infrastructure so that both design and production can take place within the country.
Strength in Design Capabilities
Chandak explained that India has developed strong expertise in semiconductor design over the years. Many global technology companies rely on Indian engineers and research teams for designing complex chips used in electronic devices.
He noted that moving toward design-led manufacturing means the entire value chain—from chip design to production—can operate within India. Once produced, these chips can then be exported and used across global markets.
Industry experts say such a model would strengthen India’s role in the semiconductor supply chain and reduce dependence on overseas manufacturing hubs.
Policy Support Boosts Industry Confidence
Government initiatives have played a key role in accelerating the development of India’s semiconductor ecosystem. Chandak highlighted that multiple policy measures have helped transform the country from an emerging aspirant to a credible investment destination in the global chip industry.
Several programmes, including the India Semiconductor Mission (ISM), Production Linked Incentive scheme, Design Linked Incentive initiative, and the Chips to Start-up programme, have encouraged investments in semiconductor and electronics manufacturing.
According to Chandak, consistent policy backing has helped build trust among global investors. As a result, the industry is expected to move from early groundwork to execution and scaling over the next few years.
Expansion of India Semiconductor Mission
The India Semiconductor Mission, initially launched in 2021, has evolved to include a wider scope of activities. While early efforts focused primarily on semiconductor fabrication plants, the programme now covers a broader ecosystem.
The expanded framework supports development across multiple segments such as semiconductor materials, specialty chemicals, industrial gases, and design tools. These upstream components are considered essential for building a sustainable semiconductor manufacturing environment.
Chandak said this broader approach ensures that India’s semiconductor growth is not limited to chip fabrication alone but includes all critical supply chain elements.
Manufacturing Projects Begin Taking Shape
Several semiconductor-related projects have already been approved as part of the mission. Chandak indicated that around ten facilities have received approvals under the first phase of the programme, while additional projects have also been cleared by various state governments.
He added that the country has already begun producing packaged semiconductor chips through assembly and testing operations. This marks an early milestone in India’s manufacturing journey.
Industry observers note that these developments indicate steady progress toward establishing full-scale semiconductor production capabilities.
Assembly and Testing as the First Step
India’s strategy follows a global pattern seen in many countries that entered the semiconductor industry over the past five decades. Instead of beginning with wafer fabrication, several nations initially focused on assembly, testing, and packaging operations.
Chandak explained that this approach involves lower financial risk and requires a workforce skill set that is easier to scale in the early stages of industry development.
India has already started building capacity in this area. One facility has been completed, and several more are expected to begin operations within the year.
Growing Talent Pool Strengthens Design Ecosystem
Semiconductor design remains one of the most technically demanding areas of the electronics industry. While the physical chips appear small inside devices, the architecture and logic embedded in them involve extremely complex engineering.
India currently hosts one of the largest semiconductor design workforces in the world. Industry estimates suggest that the talent pool has grown significantly in recent years, expanding from about 120,000 professionals two years ago to nearly 160,000 today.
A significant share of this work takes place in captive design centres run by global technology companies operating in India. These facilities, commonly known as Global Capability Centres, support chip design for multinational firms.
Rise of Domestic Startups and Innovation
While multinational companies still account for a large portion of semiconductor design activity in India, a new wave of domestic startups is beginning to emerge.
Many professionals with experience in global design centres are launching their own ventures, aiming to build indigenous semiconductor products and solutions. Industry leaders believe this trend will help ensure that the expertise developed in India also contributes to the growth of local technology companies.
As manufacturing capacity expands alongside the design ecosystem, experts expect India to strengthen its role across the global semiconductor value chain in the coming years.