India’s ambition to become a semiconductor hub gained momentum with the government’s $10 billion Production-Linked Incentive (PLI) scheme. Global foundries from Taiwan, the US, and Japan are evaluating sites in Gujarat and Karnataka to build fabrication plants and assembly units.
The US-China technology rivalry has accelerated India’s importance as a trusted manufacturing base. However, semiconductor fabrication is capital-intensive and complex, requiring reliable power, water supply, and a highly skilled workforce. India is addressing this through engineering education reforms, special economic zones with tax breaks, and partnerships with universities for semiconductor design training.
The proposed Semiconductor Research Consortium will link academia, industry, and government R&D efforts, while states compete to attract fabs with infrastructure subsidies. Success in this sector could reduce India’s import dependence on critical electronics and position it as a key player in global value chains for 5G, EVs, and AI chips.
