India emerges as design hub in global chip supply chain shift

New Delhi — India is steadily carving out a key role in the global semiconductor landscape, not through large-scale chip manufacturing yet, but by leveraging its strong engineering talent and expanding chip design capabilities, according to a report by Directus.

While countries like Taiwan and South Korea dominate semiconductor manufacturing with advanced fabrication facilities, and Japan leads in materials and equipment, India is gaining ground through its human capital—particularly in integrated circuit (IC) design and engineering.

India is estimated to account for nearly 20 per cent of the global IC design workforce, backed by a steady stream of engineering graduates each year. Major global tech firms such as Intel, NVIDIA, and Qualcomm have already established large research and development centres in the country, employing thousands of engineers working on chip design, verification, and embedded systems.

Although India is still in the early stages of setting up advanced chip fabrication units, it is focusing on the mid-segment of the supply chain—assembly, testing, marking, and packaging (ATMP). A key example is Micron Technology, which is investing $2.75 billion to set up a facility in Gujarat.

This strategy allows India to integrate into the semiconductor value chain more quickly while gradually building capabilities for high-end manufacturing.

The government is also ramping up efforts under the India Semiconductor Mission 2.0 to strengthen the ecosystem. Initiatives like the Design Linked Incentive Scheme aim to support startups, boost design innovation, and provide access to tools and infrastructure.

Global confidence in India’s semiconductor push is also growing. Powerchip Semiconductor Manufacturing Corporation has partnered with Tata Electronics to establish the country’s first commercial wafer fabrication plant in Gujarat, with an estimated investment of around $11 billion.

With inputs from IANS