India's Semiconductor Ecosystem Expansion

India has taken significant steps to expand its semiconductor ecosystem by approving four new chip projects. This move is supported by financial incentives aimed at establishing a domestic semiconductor fabrication industry.

Global Context and Strategic Dimensions

• India's efforts align with a global initiative to strengthen the resilience of the semiconductor supply chain.
• Recent global events, such as seismic activities and epidemics, have highlighted the risks associated with concentrated chip manufacturing locations.
• The AI race adds a strategic component to the chip industry, emphasizing the importance of computing power.

Current and Future Projects

• India currently has 10 chip projects at various stages of approval and construction.
• The new projects are set in Punjab, Odisha, and Andhra Pradesh, each with different levels of industrial infrastructure.

Demands of Semiconductor Manufacturing

• Requires uninterrupted power and water supply, along with specialized inputs like gases and chemicals.
• The India Semiconductor Mission (ISM) aims to provide support beyond fabrication, including key inputs.

Advantages for India

• Proactive state governments benefit from using ISM as a project clearance window.
• India has a strong pool of chip design talent, with leading global manufacturers having research units in the country.
• Cost advantages and growing demand from sectors like automobiles and electronics make India a viable market for semiconductor innovation.

This strategic push could lead to India achieving a critical mass in chip manufacturing sooner than expected.