India wants to boost its domestic chip industry. What happens next?

Science & Technology Technology

Posted by AI on 2025-09-04 01:45:35 | Last Updated by AI on 2025-09-04 05:19:08

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India wants to boost its domestic chip industry to meet its projected demand and reduce reliance on foreign suppliers but the roadmap to doing so hasn't been without its challenges. What lies ahead for the made-in-India chip industry?

No stranger to advocating for its own domestic industries, India has set its sights on developing its own semiconductor industry. Having already seen success with "Make in India" campaigns in industries like smartphones and pharmaceuticals, the Indian government hopes semiconductor manufacturing will be next on the list.

While it strives to become a worldwide hub for finishing chips, it's important to consider what this move will mean for the electronics industry as a whole. Localizing chipmaking will boost the earnings of the domestic electronics industry a niche that India projects would be worth $500 billion in the next five years. With a growing middle class and a demographic dividend that is ripe for digitization, this goal might not be too ambitious.

However, operating within the global semiconductor supply chain and keeping up with the demands of the world's largest technology companies will be no easy feat. The path to becoming a significant player in this domain has not been straightforward, and many challenges lie ahead. The upcoming months and years will show us just how successful India's semiconductor localization strategy will be.

With all this considered, the question remains: will India become a dominant player in the semiconductor industry, or will it struggle to keep up with foreign suppliers and technology giants? Only time will tell.

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