Micron opens $2.75B India facility, eyes scaling chip production to hundreds of millions

India's Semicon 2.0 strategy should expand its focus beyond chip fabrication, according to Chris Miller, a renowned semiconductor expert and author of Chip War. The nation should prioritize chip design, equipment, and advanced packaging to create more value throughout the semiconductor ecosystem, Miller stated in an exclusive interview with ANI. The global chip industry is undergoing significant changes due to the rapid growth of artificial intelligence (AI), making India's multi-stage strategy timely, Miller added.

While fabrication remains crucial in semiconductor manufacturing, governments often place too much emphasis on this stage, overlooking other segments that generate substantial value, Miller argued. Many governments focus excessively on only the fabrication step, but the actual value in the chip industry is created by other stages, particularly design, he said.

India possesses a strong foundation in chip design, with hubs like Hyderabad and Bengaluru already home to thousands of chip designers working for both Indian and multinational companies, Miller noted. The surge in investment in AI has brought about a significant shift in the industry, pushing companies like NVIDIA to become major players and altering investment patterns across the semiconductor sector.

The AI boom has shifted the industry's focus from smartphones and computers to data centre applications, better architectures, and packaging solutions tailored to AI workloads, Miller explained. Advanced packaging, traditionally considered low-margin and less research-intensive, is experiencing a rapid transformation as companies increasingly utilize advanced packaging to enhance semiconductor performance.

Consequently, India should consider developing capabilities in this area, given the potential for significant innovation in semiconductors.

Moreover, India's integration into international semiconductor value chains is essential for success, Miller emphasized. Drawing parallels with South Korea and Taiwan, he pointed out that successful semiconductor economies first integrated deeply into the global value chain before investing in specific niches where they could develop technological differentiation.

For India, this approach could involve combining existing design talent with investments in manufacturing, equipment, and advanced packaging, while simultaneously developing specialized capabilities to strengthen its position in the global semiconductor ecosystem.