India’s push to secure place in global chip supply has ‘secret weapon’: its people
AI-summarised brief · reviewed before publication
India has launched the second phase of its semiconductor mission with a US$13 billion budget, aiming to build a comprehensive industrial ecosystem spanning chip design to manufacturing. This initiative expands upon the first phase, which focused on foundational infrastructure, by prioritizing the development of a large manpower pool. The government seeks to leverage its human capital as a strategic advantage, shifting the national narrative from “Make in India” to “Engineer in India.” Currently, twelve manufacturing projects have been approved across six states, with three facilities already in commercial production. These existing plants primarily handle assembly, testing, and packaging rather than advanced wafer fabrication. The move aligns with regional efforts by Japan and Singapore to reduce dependency on East Asian manufacturers following pandemic-era supply chain disruptions. By mobilizing its talent pool, New Delhi aims to secure a higher position in the global value chain, reducing import reliance while strengthening domestic capabilities in critical electronics powering AI and automotive sectors.
💡 Why It Matters
- · India’s pivot toward engineering talent challenges the traditional manufacturing-centric model of emerging semiconductor hubs.
- · This strategy positions the country to capture higher-margin design work rather than remaining confined to lower-value assembly tasks.