Piecing Together the Indian Electronics and Semiconductor Ecosystem

India's electronics and semiconductor industry is gradually coalescing like a puzzle, with some key components already in place, but the overall ecosystem still faces significant challenges. 2026 has ... Read original →

India’s semiconductor ecosystem is gradually assembling, with 2026 marking a pivotal moment as production commences at the Sanand facility. Yet, current capabilities remain limited to legacy processes, with advanced packaging like 2.5D and Flip-chip still dependent on foreign technology, exposing supply chain vulnerabilities. Despite government ambitions for vertical integration, reliance on imported equipment and specialty chemicals undermines self-reliance. Startups such as Vimag Labs and NoPo Technologies are pioneering rare-earth-free motors and scalable carbon nanotube production, offering potential breakthroughs. IBM’s Quantum System Two and academic collaborations at IIT Bombay and IISc Bangalore advance frontier research, but the overall ecosystem remains in a catch-up phase. Without systemic support for core technology development, India risks hollow manufacturing. In the next 12–24 months, failure to overcome material and equipment bottlenecks will hinder participation in global supply chain shifts.