India building domestic capabilities from chip design to indigenous AI models - MorungExpress

India is rapidly building a comprehensive semiconductor value chain, spanning chip design, fabrication, packaging, equipment, materials, and indigenous AI model development. Official data shows that 1... Read original →

India is rapidly advancing its semiconductor ecosystem from chip design to indigenous AI model development, with policy-driven investments already showing tangible results. Technologically, the rollout of 12nm projects and 211 taped-out chips signal a growing domestic design capability, which will boost demand for upstream EDA tools, IP licensing, and advanced packaging. From a compliance standpoint, while government subsidies reduce operational costs, they may also increase supply chain fragmentation, particularly in high-end equipment and materials. In the global competitive landscape, India’s AI compute expansion could challenge the dominance of U.S. and China Taiwan/Hong Kong semiconductor hubs by offering lower-cost R&D infrastructure. Over the next 12 to 24 months, if Indian AI chips achieve commercial traction, it could reshape global AI compute distribution, accelerate local innovation ecosystems, and prompt international capital to reassess geopolitical risks and ROI in the semiconductor sector.