India’s Techade drive: Five key moves in chips, electronics, AI and global competition

New Delhi has pledged over US$20 billion in government support to reduce India's dependence on foreign microchips by 2025. Five assembly, testing, and packaging plants are now operational, involving US firms such as Micron, as well as Indian and Thai firms. Seven more projects are in the pipeline, including a chip factory in Gujarat built in partnership with Taiwan's PSMC.

The Indian semiconductor market, valued at roughly US$50 billion in 2026, is expected to soar to US$200 billion by 2035. Electronics production in India has surged from US$31 billion in 2014-15 to US$133 billion in 2024-25. Global manufacturers, including Apple and Samsung, have been expanding their operations in the country as they seek alternatives to China.

The government is incentivizing local supply chains through incentives for component makers. India currently contributes about three percent of global data-center capacity, and nearly US$70 billion worth of projects are under construction, with a further US$90 billion announced. Investors include Indian conglomerates like Reliance and Adani, as well as US tech giants such as Amazon, Microsoft, and Meta.

Google is constructing a US$15 billion AI hub in Visakhapatnam. India boasts nearly 20 percent of the global chip-design workforce, with about 70,000 design engineers trained over the past four years. The government has expanded semiconductor-related courses and programs across hundreds of engineering colleges. However, experts question whether India can translate its ambitious plans into a competitive technology ecosystem, citing challenges such as access to global capital, attracting and retaining top talent, and sourcing hardware resources.