India's Semiconductor Aspirations: Can It Compete Globally?

Sun Feb 01 2026 12:01:16 GMT+0200 (Eastern European Standard Time)

As the demand for computer chips surges, India seeks to establish itself in the semiconductor industry, moving beyond design to local manufacturing.

India, home to a significant portion of the world's semiconductor engineers, is looking to shift from merely designing chips to establishing a robust semiconductor manufacturing ecosystem. Tejas Networks' experience highlights the need for India's self-sufficiency in chip production, especially following vulnerabilities exposed during the Covid pandemic. The government is supporting initiatives like Kaynes Semicon, aiming to enhance local production capabilities for essential chips in various sectors such as telecom, automotive, and defense.

A reliable supply of computer chips is essential for Arnob Roy, the co-founder of Tejas Networks, a company based in Bangalore, India, which supplies equipment for mobile phone networks and broadband connections.

Tejas Networks designs many specialized chips required for telecom tasks, capable of handling massive data volumes and ensuring network reliability. Although India boasts expertise in chip design—housing about 20% of the world’s semiconductor engineers—it relies on overseas manufacturing for its semiconductor needs.

The disruption during the Covid pandemic highlighted the vulnerabilities of a global supply chain overly dependent on external sources. Recognizing this risk, India is actively developing its semiconductor industry to enhance resilience.

Several initiatives are underway, including the establishment of facilities to manufacture and test chips. Kaynes Semicon, the first company to open a semiconductor plant with government support, started production in Gujarat, primarily focusing on chips used in automotive and defense rather than the latest AI tech.

Amidst these developments, experts note that while India has a strong design background, significant challenges remain in training skilled personnel and maintaining production standards necessary for semiconductor fabrication.

Moving forward, Indian firms like Tejas Networks hope to increasingly source chips locally, thereby fostering a sustainable semiconductor ecosystem that can cater to domestic needs while gradually advancing toward more complex chip technologies.