India’s Semiconductor Ambitions Gain Momentum Amid Global Investments and Domestic Challenges

India’s manufacturing and technology sectors are making headlines as the nation advances its semiconductor ambitions. A landmark development comes from Andhra Pradesh, where Indichip Semiconductors Ltd and Japan’s Yitoa Micro Technology are launching India’s first private semiconductor facility with a ₹14,000 crore ($1.7 billion) investment. The plant will produce cutting-edge Silicon Carbide (SiC) chips, critical for electric vehicles and renewable energy systems, aligning with India’s sustainability goals and push for self-reliance. This project follows the U.S. Commerce Department’s $4.7 billion CHIPS Act award to Samsung and others, underscoring a global race to secure semiconductor supply chains. While India’s progress is notable, experts warn that reliance on foreign partnerships highlights lingering gaps in domestic technological expertise.

Despite these strides, barriers persist. A recent report by Analytics India Magazine notes that startups face daunting entry challenges, including high capital costs and dependence on global collaborations. Ashok Chandak, president of the India Electronics and Semiconductor Association, emphasized, “We have no foundational technology—our progress hinges on international cooperation.” These hurdles clash with India’s vision to become a $32 trillion economy by 2047, as articulated by G20 Sherpa Amitabh Kant, who urged prioritizing “sunrise sectors” like advanced manufacturing and clean energy.

Amid these dynamics, global players are betting on India’s growth. Japanese tech giant NTT DATA plans to double its investments in AI and cloud solutions, targeting India’s banking and automotive sectors. Meanwhile, innovations like Avid Bioservices’ iHP decontamination technology showcase cross-industry advancements. For India, balancing foreign partnerships with indigenous R&D will be key to transforming its semiconductor aspirations into a manufacturing reality.