India reportedly plans to launch fresh chip incentive in fiscal 2027

India’s planned ₹71 billion semiconductor incentive for FY2027 will spur localization in packaging, testing, and materials—but without a mature process ecosystem or skilled workforce, firms face steep compliance costs and yield risks. If TSMC or Samsung delay investments, New Delhi may fast-track second-tier foundries from Taiwan, China to fill the void, disrupting global capacity allocation. Over the next 12–24 months, policy-driven fabs may emerge, yet without deep integration with Japanese/Korean equipment vendors and U.S.-based EDA tools, their long-tail impact will likely be confined to low-end MCUs and power management ICs, leaving East Asia’s supply chain dominance intact.