Modi says India's chip mission has reached commercial production as Semicon 2.0 lifts the purse to US$13.5 billion

India's shift from infrastructure development to commercial production marks a pivotal phase in its semiconductor strategy. This transition will accelerate upstream supply chain investments, particularly in EUV lithography and advanced packaging technologies. Increased government funding and private capital involvement are reshaping global supply chains, compelling Western firms to reassess the cost-benefit of setting up operations in India. In the short term, Taiwan, China and Hong Kong, China-based manufacturers may expedite investments to capture market share. Over 12-24 months, India could emerge as a significant player in global chip dynamics, especially in 5G and AI applications. However, policy volatility and localization mandates may raise operational costs and heighten supply chain risks.