India Pitches Itself as 'Lighthouse of Stability' for Global Semiconductor Investment
At the Semicon India 2025 conference, Union Minister Ashwini Vaishnaw invited global industry leaders to invest in India's expanding semiconductor ecosystem, calling the nation a "lighthouse of stability and growth" amid global turmoil. He highlighted that five semiconductor units are already under construction and noted India's stable policies and growing talent pool. A separate report revealed that India is already home to approximately 20% of the world's chip design engineers, cementing its crucial role in the global semiconductor value chain.
Unpacked:
India offers significant incentives, including over INR 629 billion (about US$7.17 billion) in subsidies for chip production, funding for modernizing existing labs, and design-linked incentive schemes, as part of its Semiconductor Mission to attract both foreign and domestic investors to the sector.
India faces challenges such as an underdeveloped supply chain, shortage of specialized manufacturing talent, limited domestic production of key raw materials, and strong global competition from established players like Taiwan and China.
India excels in semiconductor design, with about 20% of the world’s chip design engineers, and a thriving fabless ecosystem. However, its manufacturing capabilities are still nascent, with only a handful of fabrication plants under construction and most chips still imported.
Geopolitical tensions, especially U.S.-China trade issues, have prompted global supply chain diversification. India is positioning itself as a stable alternative for semiconductor production, aiming to reduce dependency on traditional hubs like China and Taiwan and attract companies seeking resilient supply chains.