India's Semiconductor Strategy: Ambitious Goals Amidst Execution Hurdles

India's semiconductor strategy blends successful elements from leading Asian nations but faces execution challenges. The country focuses on chip packaging and testing, seeking to increase domestic capabilities. However, dependence on imports, workforce gaps, and limited sub-28nm prospects pose significant challenges to achieving competitive global standards quickly.

India is ambitiously bolstering its semiconductor capabilities, integrating strategies from leading Asian chip-making nations, according to Equirus Securities. While India's strategic blend avoids China's approach, emphasizing research from Taiwan and manufacturing insights from Malaysia, execution remains a significant hurdle due to heavy reliance on imported equipment and supply chain gaps.

The report underscores India's strategy, focusing on areas with competitive advantages, backed by its substantial talent pool of nearly three lakh chip designers. Core to its strategy are mature nodes between 28nm and 110nm for automotive, industrial, and consumer applications. Despite demand-led import substitution driving the market, India is expected to continue importing over 90% of its semiconductor equipment and specialized materials.

Though India boasts a strong base of chip designers, the lack of process engineers and cleanroom technicians hampers progress. The goal of expanding its workforce by 85,000 engineers by 2027 is seen as challenging yet attainable, inspired by the swift operational success of Micron's facility. However, the absence of a robust equipment ecosystem and limited sub-28nm prospects hinder full-scale advancement.