India is poised to make a significant leap into the semiconductor industry, aiming to produce its first homegrown chip by 2026-2027. This ambitious goal, announced by Commerce Minister Piyush Goyal during a recent interview in New York, underscores the country's determination to become a key player in the global chip market. The semiconductor push comes as major U.S. companies such as Nvidia, AMD, and Micron have expressed interest in expanding their operations in India.
Goyal highlighted that Indian conglomerates like Tata, along with other domestic companies, are actively working to make this vision a reality. He acknowledged that manufacturing the world’s most advanced chips would require the expertise of giants like Taiwan’s TSMC and South Korea’s Samsung but emphasized India’s strength in talent and skills. Goyal, reflecting on his recent visit to Silicon Valley, pointed out that Indians are already making an impact across various levels of the semiconductor industry in the U.S.
India’s journey into semiconductors is part of a broader effort to diversify its manufacturing capabilities and reduce reliance on China. Apple, for example, has already seen success in moving production to India. Goyal noted that 14% of the world’s iPhones are now produced in the country, with plans to increase that figure. Apple has ramped up production of iPads, AirPods, and Apple Watches in India, creating over 150,000 jobs across its manufacturing facilities. This has positioned Apple as the largest employer in India's electronics industry, marking a major win for the country’s tech sector.
While India’s progress is evident, Goyal dismissed any notion that the country’s success is tied to China’s ongoing economic challenges. He stressed that India stands on its own merit, with strong competencies that attract global players. This was further emphasized during meetings with Wall Street investors, including executives from BlackRock, Warburg Pincus, and KKR, who are eyeing opportunities in India's growing data center market.
In addition to semiconductors, companies like Google, Microsoft, and Nvidia are bringing their AI expertise to India, a development that has received enthusiastic support from Prime Minister Narendra Modi’s government. However, analysts caution that India must address significant obstacles such as poor infrastructure and bureaucratic red tape, which could hamper future growth.
India’s semiconductor ambitions signal a bold new chapter for the country’s tech industry. By leveraging its talent pool and fostering strong partnerships with global tech leaders, India is positioning itself as a formidable player in the tech world—one that is ready to compete on the global stage.
