‘We don’t have to repeat the 30 years’: India taps Asia’s chip hubs to fast-track semiconductor ambitions

India is rapidly developing its semiconductor industry by tapping into Asia's established chip hubs and learning from their experiences. Industry leaders believe India can leapfrog the 30 years it took other nations to reach this stage by leveraging existing expertise and forming partnerships. Kaynes Semiconductor, led by general manager of operations Nanie Torres, has begun commercial production of chip packaging in Gujarat.

This facility is part of a wave of semiconductor projects approved by the Indian government, with a total investment of over 1.64 trillion rupees. Industry experts note that while India has a wealth of semiconductor designers, its manufacturing and packaging capabilities are still limited. To address this, Kaynes has recruited experienced professionals from the Philippines and Malaysia, while building an Indian team around them.

Currently, India's semiconductor plants focus on back-end stages like assembly, testing, and packaging. However, the industry's next challenge lies in building the supply chain around these fabrication plants and developing local expertise. Experts suggest that India should focus on building a complete ecosystem around semiconductor manufacturing plants rather than localizing every aspect of the supply chain.

For instance, a single fab requires about 50 different gases for chip production, many of which must be sourced from overseas. Despite this, India is beginning to develop specialized capabilities locally. US chip toolmaker Lam Research plans to invest over 100 billion rupees in its first Indian plant, which will produce specialized silicon parts used in semiconductor manufacturing equipment.

Industry leaders emphasize the importance of resilient supply chains, even as India seeks to build its own capacity and learn from established semiconductor economies.