India's chipmaking push faces its real test after initial wafers: yield

India's semiconductor industry has entered the production phase, but yield issues will be the key determinant of its ability to compete. Technologically, early production setbacks will severely impact upstream equipment and material suppliers, especially in EUV and advanced nodes, causing global supply chain misallocation. From a compliance standpoint, policy uncertainties and export controls will increase operational costs, particularly in design and manufacturing sectors. In response, global leaders may accelerate investments in Southeast Asia or Mexico to mitigate geopolitical risks. Over the next 12 to 24 months, if India fails to achieve stable output, its chip strategy risks becoming an empty promise. The global semiconductor landscape may shift accordingly, with India potentially focusing on low-power and specialized chips for survival.