India's Growing Role in the Global Semiconductor Landscape

India is rapidly emerging as a pivotal player in the global semiconductor landscape, driven by its engineering talent and design capabilities. While traditionally overshadowed by countries like Taiwan and South Korea, India's strength lies in its skilled workforce, which constitutes a significant portion of the global integrated circuit design sector. With major investments from global tech giants and government initiatives like the India Semiconductor Mission 2.0, the country is poised to enhance its role in the semiconductor supply chain. This article delves into India's strategic advancements and partnerships that are shaping its future in this critical industry.

By Narendra Chaudhary Mar 18, 2026, 14:32 IST

India's Semiconductor Potential

New Delhi, March 18: India is positioning itself as a significant contributor to the global semiconductor industry, not primarily through massive chip manufacturing facilities, but rather through its robust engineering talent and advancing design capabilities, according to a recent report.

Historically, nations like Taiwan and South Korea have been at the forefront of semiconductor discussions due to their sophisticated fabrication plants, while Japan has been recognized for its expertise in materials and equipment.

In contrast, India has often been perceived as a minor player. However, experts now highlight that India's true advantage lies in its skilled workforce, particularly in chip design and engineering, as noted in the Directus report.

Currently, India is estimated to represent nearly 20% of the global integrated circuit (IC) design workforce.

This is bolstered by a substantial influx of engineering graduates each year. Major global tech firms like Intel, NVIDIA, and Qualcomm have established significant research and development centers in India, employing thousands of engineers.

These teams are engaged in chip design, verification, and embedded systems, enabling companies to enhance their operations efficiently and cost-effectively.

While India is still in the nascent phase of developing high-end chip fabrication units, it is increasingly focusing on the mid-stages of the supply chain, which includes assembly, testing, marking, and packaging (ATMP).

A notable example is Micron Technology, which is investing $2.75 billion to establish a facility in Gujarat.

This strategy allows India to integrate into the semiconductor value chain more swiftly while gradually enhancing its manufacturing capabilities, as per the report.

The government is also intensifying its efforts to bolster the sector. Through the India Semiconductor Mission 2.0, authorities are aiming to enhance design talent, support startups, and foster a more resilient chip ecosystem.

A crucial component of this initiative is the Design Linked Incentive (DLI) Scheme, which provides financial assistance and access to essential tools and infrastructure for chip design and development.

International companies are increasingly expressing confidence in India's policy direction.

Taiwan's Powerchip Semiconductor Manufacturing Corporation has teamed up with Tata Electronics to establish the country's first commercial wafer fabrication plant in Gujarat, with an investment of approximately $11 billion.