India roundup: India broadens semiconductor and AI ambitions across manufacturing, design, materials and data centers

India's broadening semiconductor ambitions are reshaping global supply chain dynamics. By expanding beyond packaging and testing into design, materials, and data centers, India aims to build an end-to-end domestic ecosystem. This shift pressures upstream sectors like EDA and IP licensing to relocate, undermining reliance on Taiwan, China and Hong Kong, China. While policy incentives attract foreign investment, skill gaps and regulatory bottlenecks are likely to increase operational costs and hinder short-term competitiveness. Major players such as Foxconn, Samsung, and LG are leveraging India to diversify production and mitigate geopolitical risks, accelerating global semiconductor fragmentation. In the next 12–24 months, if India fails to rapidly scale infrastructure and human capital, its manufacturing appeal will wane, further pushing the global semiconductor landscape toward multi-center development.