A New Chapter for India’s Tech Ambitions
The semiconductor landscape in India is undergoing a structural shift. While the nation has long served as a powerhouse for global semiconductor design—housing nearly 20% of the world’s chip design workforce—industry experts are now pushing for a more ambitious goal: moving from service-based engineering to owning the final product.
Speaking at SEMICON India 2026, Vikram Meghal, Senior Vice President and Service Offering Head at Infosys, emphasized that while India has proven its capability in complex chip engineering, the next phase of growth requires a transition toward capturing the full value of innovation. For India to ascend from an engineering hub to a global semiconductor giant, the focus must expand beyond components and into integrated product ownership.
Why Product Ownership Matters
The global semiconductor industry is currently facing a 'once in a generation' demand window. As supply chains realign and advanced electronics become central to economic competitiveness, India’s current strength in 'fabless' design is a solid foundation—but it isn't enough to capture the lion's share of market value.
- Capturing higher profit margins by controlling the end product rather than just providing engineering hours.
- Reducing dependency on foreign manufacturing by building local capabilities in mature and compound nodes.
- Leveraging the 'Semicon 2.0' incentive plan, which provides INR 1.275 trillion in government support.
- Moving toward the NITI Aayog goal of achieving 35-50% chip self-sufficiency by 2035.
The Path to Self-Sufficiency
The government's 'Semicon 2.0' initiative, announced in July 2026, signals a comprehensive push that spans fabrication, display manufacturing, and advanced packaging. By aligning research-heavy institutions like the IITs and IISc with private sector ambitions, India aims to build an ecosystem that is indispensable to the global market.
Winning the semiconductor race will not be easy if India continues to run the existing race; instead, it should shift gears and target becoming the ecosystem player that the global semiconductor industry cannot run without.
— NITI Aayog, Future of India's Semiconductor Industry Report