India is slowly but steadily making its mark in the global semiconductor world. The country already has strong expertise in chip design, and now it’s taking the first real steps into chip manufacturing. The Covid pandemic showed how fragile global supply chains can be, which gave India a strong reason to build its own capabilities.
India’s Strength in Chip Design
India is home to about 20 percent of the world’s semiconductor engineers, and nearly every major global chip company has a big design center in the country. Companies like Tejas Networks in Bangalore design chips that power mobile networks and broadband, handling huge amounts of data and ensuring networks never go down.
These telecom chips are very different from the ones in your smartphone. They need to process massive traffic reliably and support backup systems at all times. Indian engineers are already designing these complex chips, but the actual manufacturing still happens overseas.
The Manufacturing Gap and Covid Lessons
The big gap is manufacturing. Chips need to be etched onto silicon wafers in huge factories called fabs, most of which are in Taiwan. Then comes slicing, packaging, and testing—the steps that make the chips usable.
During Covid, chip shortages hit industries worldwide. It became clear that relying on a few countries was risky. This pushed India to build its own semiconductor ecosystem to reduce dependency and improve resilience.
Starting with Assembly and Testing
Instead of jumping straight into building expensive fabs, India is focusing on assembly, packaging, and testing, known as Osat. These steps are easier to start with but still crucial.
Companies like Kaynes Semicon in Gujarat are leading the way. Their facility, backed by government support, focuses on chips used in cars, telecom networks, and defense. These chips might not be the flashy AI or smartphone chips, but they are essential for India’s economy and security. By serving domestic demand first, India is laying the foundation for more advanced production later.
The Challenges Ahead
Building a semiconductor industry isn’t easy. India is training workers, setting up cleanrooms, and learning to use new equipment. Semiconductor manufacturing demands strict discipline, detailed documentation, and years of experience. Training skilled staff remains the biggest hurdle, and it takes time—there are no shortcuts.
Looking Ahead
Industry leaders believe India’s semiconductor manufacturing base will grow significantly over the next decade. Companies like Tejas Networks could soon source more components locally, reducing supply risks.
It’s a long journey, but India is taking the right steps. With steady investment and support, it could eventually design and produce complete chipsets, moving from assembly and testing to fully independent chip manufacturing.
