India's Strategic Push for Resilient Semiconductor Supply Chains

India has placed renewed emphasis on building resilient semiconductor and electronics supply chains as a central pillar of its digital transformation strategy, underlining plans to expand domestic manufacturing capacity, deepen international partnerships and promote trusted, secure technology infrastructure. Senior officials have framed semiconductor capability as critical not only for consumer electronics and telecommunications, but also for emerging domains such as artificial intelligence, strategic digital infrastructure and advanced manufacturing.

Context: Semiconductors at the core of digital transformation

Semiconductors power virtually every layer of India’s digital economy, from smartphones and laptops to 5G networks, cloud infrastructure, automotive systems, industrial automation and critical public digital platforms. The government has repeatedly signalled that resilient supply chains in this sector are essential to ensure continuity of services, reduce import dependence, and support the country’s objectives in electronics manufacturing and digital public infrastructure.

Over the past decade, India has rolled out flagship programmes in electronics manufacturing, including initiatives to support large-scale production of mobile phones, computers and other electronic goods, coupled with incentives for component and sub-assembly ecosystems. The focus has progressively shifted from end-product assembly to deeper value addition, including semiconductors, display technologies and high-value components required for advanced electronics.

Recent global disruptions in semiconductor supply have underscored systemic vulnerabilities in extended, highly concentrated supply chains. India’s policy response has aimed to align national digital ambitions with a more secure and diversified sourcing and manufacturing base, so that large-scale roll-out of digital services, infrastructure and emerging technologies is not constrained by external shocks.

Policy push for semiconductor and electronics supply chain resilience

The central government has positioned semiconductor supply chain resilience as a strategic public policy priority connected to manufacturing, innovation, skills, and secure digital infrastructure. This is being pursued through a combination of incentive schemes, infrastructure creation, regulatory facilitation and international engagement.

Key policy objectives have included the development of domestic semiconductor fabrication, assembly, testing, marking and packaging capabilities; expansion of electronics system design; strengthening of component and materials supply; and integration into trusted global value chains. The effort is framed as an enabler for India’s broader goals of becoming a major hub for electronics manufacturing, supporting large-scale employment and sustaining its digital public infrastructure.

Officials have repeatedly drawn the link between semiconductor resilience and uninterrupted delivery of public and private digital services, including platforms for payments, education, healthcare, agriculture and social protection. A secure and predictable supply chain is seen as necessary to maintain and upgrade these services, and to support the proliferation of connected devices and smart infrastructure in urban and rural settings.

Institutional and programmatic measures

The drive to strengthen semiconductor and electronics supply chains has been accompanied by the establishment or expansion of dedicated programmes and institutional mechanisms. These are intended to provide long-term policy continuity, streamline approvals, and coordinate among multiple ministries and agencies involved in industry, electronics, information technology, finance, trade, skills and research.

Specific measures have focused on providing fiscal and regulatory support for semiconductor manufacturing and packaging facilities, creating common infrastructure such as industrial parks and plug-and-play facilities, and backing research and development in chip design and advanced materials. Parallel efforts have sought to build a talent pipeline in semiconductor engineering, design and manufacturing through collaborations with higher education institutions and specialised training initiatives.

The government has also emphasised the importance of standards, quality and reliability frameworks for electronics and semiconductor products, in order to enable integration into global supply networks and meet the requirements of international buyers and technology partners. This includes strengthening testing, certification and calibration infrastructure and encouraging industry adoption of global best practices in manufacturing and supply chain management.

International collaboration and trusted supply chains

Resilient semiconductor and electronics supply chains inherently require cross-border cooperation, given the global distribution of design, fabrication, packaging, equipment and materials capabilities. India has therefore pursued partnerships with like-minded countries and regions that share an interest in building diversified and trusted semiconductor ecosystems.

These partnerships typically cover areas such as joint research, design collaboration, workforce development, sharing of best practices, and potential co-investment in manufacturing and packaging projects. They are also intended to facilitate access to critical semiconductor manufacturing equipment and materials, and to explore complementary roles in regional and global supply chains.

By positioning itself as a reliable and predictable partner, India seeks to attract long-term investments from global semiconductor and electronics firms and to integrate its domestic ecosystem with established hubs. The government has presented this approach as a contribution to globally resilient supply chains that are less vulnerable to concentration risks and disruptions.

Linkages with wider electronics manufacturing initiatives

The focus on semiconductors is closely linked to broader electronics manufacturing policies, under which India has emerged as a significant producer of mobile phones and other electronic devices. Building resilience in semiconductor and component supply is intended to deepen local value addition in these sectors and to gradually reduce dependence on imported high-value parts.

Authorities see a clear connection between a stronger component and semiconductor base and the sustainability of large-scale production of devices for domestic consumption and export. As product lifecycles shorten and technology generations evolve rapidly, timely access to advanced chips and components becomes essential for manufacturers operating in India.

The policy push also aims to support the localisation of critical sub-systems used in key sectors such as telecommunications, power, transport, defence-related electronics, medical devices and industrial equipment. Strengthening upstream capabilities in semiconductors and electronics components is projected to help domestic firms compete in these sectors and to meet national requirements for secure, trusted hardware.

Support for innovation, design and research

Supply chain resilience is being approached not only from a manufacturing standpoint but also through support for design and innovation. The government has highlighted the importance of nurturing domestic capabilities in chip design, embedded systems and electronics system design and manufacturing, complementing fabrication and packaging efforts.

Public initiatives have broadened support for start-ups, academic institutions and research organisations working on semiconductor and electronics technologies. Access to design tools, prototyping facilities and specialised training is being expanded through dedicated programmes. These efforts are designed to create a pipeline of indigenous intellectual property that can be manufactured either within India or in partnership with global foundries.

The official view is that a robust design ecosystem can improve the country’s position in global value chains by contributing unique solutions tailored to local needs in sectors such as agriculture technology, healthcare devices, industrial automation, mobility and smart infrastructure. Over time, this is expected to reduce technology dependence and increase the share of domestic firms in high-value segments.

Emphasis on secure and trusted digital infrastructure

Semiconductor supply chains are also being addressed from the standpoint of cyber security and trust. As India’s digital public infrastructure expands, there is heightened attention on ensuring that underlying hardware and components meet security and reliability expectations, particularly in critical information infrastructure and strategic sectors.

Authorities have therefore linked semiconductor resilience with broader initiatives on trusted telecommunications and networking equipment, secure devices and supply chain assurance. This approach recognises that vulnerabilities in hardware supply chains can have wide-ranging implications for citizens, enterprises and government platforms that depend on seamless and secure digital connectivity.

Initiatives in this space typically involve norms, standards and evaluation mechanisms for imported and domestically manufactured equipment, as well as guidelines for procurement and deployment in critical networks. In parallel, support for domestic manufacturing and design is framed as a means of increasing transparency and control over key components within the ecosystem.

Statements highlighting India’s intent

In public forums, senior representatives of the Government of India have emphasised that semiconductor and electronics supply chain resilience is integral to the country’s long-term digital and economic roadmap. The messaging consistently links supply chain goals with inclusive digital growth, industrial development, innovation and national capacity-building.

“We are committed to building a resilient and trusted semiconductor and electronics ecosystem that can support India’s digital transformation for decades to come. This includes strengthening domestic capabilities, fostering international partnerships and ensuring that our supply chains remain secure and diversified.”

Such statements underline the government’s intention to address the entire lifecycle of semiconductor and electronics production, from design and fabrication to assembly, packaging, testing and end-product integration. They also reflect an understanding that supply chain resilience requires long-term institution-building, policy stability and close engagement with industry and research stakeholders.

Implementation channels and coordination

The implementation of India’s semiconductor and electronics supply chain agenda is routed through multiple ministries, departments and specialised agencies, coordinated under overarching policy frameworks. This includes entities responsible for electronics and information technology, heavy industry, commerce and trade, science and technology, higher education, skills development and standardisation.

Dedicated programme management structures have been instituted to handle application processing for incentive schemes, project appraisal and monitoring, and engagement with prospective investors. Single-window mechanisms, wherever provided, are designed to reduce procedural delays and offer clarity on regulatory requirements across land, environment, utilities, import of equipment and other approvals.

Coordination with state governments forms an important element of implementation, as semiconductor and electronics facilities typically require significant land, power, water, logistics connectivity and skilled workforce availability. States with existing electronics clusters or strong engineering and manufacturing capabilities are positioning themselves to host new investments, often aligning their policies and infrastructure support with central initiatives.

Skill development and human capital

A critical factor for the resilience of semiconductor and electronics supply chains is the availability of adequately trained engineers, technicians and operators. Recognising this, the government has encouraged collaboration between ministries, universities, technical institutions, industry associations and global partners to align curricula, expand specialised courses, and promote practical training in semiconductor-related disciplines.

New and expanded programmes in areas such as microelectronics, VLSI design, semiconductor process engineering, packaging technologies and electronics manufacturing services are being introduced in higher education institutions. Industry-linked training modules and apprenticeships are intended to accelerate workforce readiness and provide enterprises with access to suitably skilled personnel for both greenfield and brownfield projects.

In parallel, capacity-building initiatives aim to upskill the existing electronics manufacturing workforce in advanced process control, quality management, automation and data-driven production. This is expected to improve productivity, reduce defect rates and support the transition towards higher-value manufacturing activities across the sector.

Potential administrative impact

The efforts to build resilient semiconductor and electronics supply chains have several implications for public administration and governance. Implementation requires coordinated regulatory facilitation, monitoring of large incentive-linked projects, and continuous engagement with domestic and international stakeholders.

Administratively, this is leading to:

• Strengthening of project appraisal and monitoring systems for high-value manufacturing investments in semiconductors and electronics.
• Greater use of digital platforms for application processing, compliance submissions and performance tracking under incentive and support schemes.
• Enhanced inter-ministerial and centre–state coordination frameworks dedicated to advanced manufacturing and technology infrastructure.
• Development of specialised units within departments to handle issues related to semiconductor technology, standards, security and international cooperation.

These steps are expected to improve the overall capacity of public institutions to manage complex, technology-intensive industrial projects and to respond more rapidly to global shifts in supply chains and technological standards.

Potential public and economic impact

For citizens and the broader economy, resilient semiconductor and electronics supply chains can influence multiple dimensions of everyday life and long-term development. While many of the initiatives are medium to long term in nature, their anticipated impacts include improved availability of digital devices and services, more reliable connectivity, and expanded employment opportunities.

Potential public-facing outcomes include:

• Increased domestic manufacturing of consumer electronics and connected devices, which may support wider access to digital tools for education, healthcare, commerce and public services.
• Greater resilience of digital public infrastructure used for payments, identity, social protection, agriculture and governance platforms, due to more secure and predictable supply of critical hardware.
• Creation of high-skilled and semi-skilled employment opportunities in semiconductor manufacturing, packaging, testing, design and supporting services, particularly in emerging technology clusters.
• Stimulus for ancillary sectors such as logistics, utilities, cleanroom equipment, chemicals, specialty gases and precision engineering, which are integral to semiconductor and electronics ecosystems.

Over time, success in these initiatives could enhance India’s position in global value chains and potentially contribute to export earnings in high-technology sectors. It may also offer domestic enterprises better access to advanced components for innovation in products and services targeted at both Indian and international markets.

Challenges and considerations

Building resilient semiconductor and electronics supply chains is complex and capital intensive. It requires sustained policy support, significant investments, technological partnerships and continuous skill development. Global competition for semiconductor investment is intense, and supply chains are characterised by rapid technological change and long payback horizons.

Public authorities therefore need to continuously monitor global trends in technology nodes, demand patterns, equipment availability and regulatory standards, while aligning domestic policies to remain attractive and competitive. Equally, careful design and oversight of incentive frameworks are important to ensure efficient use of public resources, timely project execution and alignment with long-term strategic objectives.

Environmental and sustainability considerations are another important factor, as semiconductor and electronics manufacturing require substantial water, energy and specialised materials. Planning for resource-efficient facilities, adoption of clean technologies and adherence to environmental norms will be central to the long-term viability and social acceptance of such projects.

Outlook

India’s articulation of its semiconductor and electronics supply chain agenda reflects a convergence of industrial policy, digital strategy and strategic technology considerations. The emphasis on resilience recognises both the opportunities and the vulnerabilities associated with rapidly expanding digital infrastructure and services.

As implementation progresses, the effectiveness of the initiatives will depend on the pace at which planned facilities materialise, the depth of integration achieved with global partners, the strength of the domestic design and innovation ecosystem, and the capacity of public institutions to support and regulate a complex, technology-intensive sector.

For now, the government’s repeated emphasis on resilient semiconductor and electronics supply chains signals that this area will remain a high administrative priority, closely linked to the broader goal of enabling secure, inclusive and sustainable digital transformation across the country.