Why India’s semiconductor manufacturing industry is yet to take off

India was making significant strides to establish itself as a notable player in the global semiconductor manufacturing industry in 2024. The semiconductor sector has been pivotal in powering various technological advancements across industries, including telecommunications, automotive, healthcare, and more. India’s efforts to bolster its semiconductor manufacturing capabilities were primarily driven by both domestic and global factors.
Several key elements contribute to India’s emergence in this industry:

Government Initiatives:
Electronics Manufacturing Policies: The Indian government launched initiatives like the National Policy on Electronics to promote electronics manufacturing, including semiconductors, to reduce import dependency and enhance domestic production.
Production-Linked Incentive (PLI) Scheme: India introduced schemes offering financial incentives to companies engaged in semiconductor manufacturing, aiming to attract foreign investments and facilitate the growth of semiconductor fabrication plants within the country.
Growing Demand:
Rising Domestic Demand: India’s burgeoning consumer electronics market, along with the increasing adoption of digital technologies across various sectors, has led to a surge in demand for semiconductors within the country.
Global Supply Chain Shift: The global semiconductor shortage highlighted the vulnerabilities of depending solely on a few manufacturing hubs. This encouraged India and other countries to invest in semiconductor manufacturing to diversify the supply chain and reduce dependency on a handful of regions.
Collaborations and Partnerships:
International Collaborations: Indian semiconductor firms and the government have been actively seeking collaborations and partnerships with international semiconductor companies and technology giants to leverage expertise, technology, and investment in this sector.
Academic and Industry Partnerships: Collaborations between academia and industry players have been fostering research, skill development, and innovation in semiconductor technology within India.
Investment and Infrastructure Development:
Infrastructural Development: India has been investing in creating specialized semiconductor manufacturing zones and infrastructure to support the establishment and growth of semiconductor fabrication units.
Foreign Direct Investment (FDI): The Indian government has been actively encouraging FDI in the semiconductor sector, offering incentives and ease of doing business to attract global semiconductor manufacturers to set up operations in the country.
Skilled Manpower and Talent Development:
Skill Enhancement Programs: India has been focusing on developing a skilled workforce by initiating specialized training programs and collaborations with educational institutions to produce a talent pool proficient in semiconductor technologies.
While India has shown significant potential and commitment to becoming a prominent player in semiconductor manufacturing, establishing a robust semiconductor ecosystem takes time and involves overcoming various challenges. Some of these challenges include:

High Capital Investment: Semiconductor fabrication facilities require massive investments, which can pose a challenge in attracting significant investments, especially for newer entrants in the field.
Technological Expertise: Building a talent pool with expertise in semiconductor technology, design, and fabrication processes is crucial and requires continuous efforts in education and skill development.
Global Competition: Competing with established semiconductor manufacturing giants in countries like Taiwan, South Korea, the United States, and China poses a competitive challenge for India.
, India was making global hub strides, but the semiconductor manufacturing landscape is dynamic and continuously evolving. For the most current information on India’s self-dependence on the semiconductor industry in 2026,

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