Building India’s semiconductor ecosystem: policies, capabilities, and challenges in achieving technological self-reliance

Abstract India’s renewed push into semiconductor manufacturing marks a crucial step towards technological self-reliance and integration into global value chains. This paper reviews the evolution of India’s semiconductor policy framework. It highlights substantial private investments in fabrication and Outsourced Semiconductor Assembly and Test facilities, placing them within the broader semiconductor value chain. The analysis also considers recent patenting trends, which show a rise in filings by both multinational corporations and Indian institutions, indicating an increase in research and development capabilities. At the same time, the paper discusses structural challenges, including talent migration, reliance on foreign technology partners, and delays in operationalizing fabs. By evaluating progress in capability-building and India’s readiness across the assembly process, the paper provides a critical assessment of achievements to date and the risks associated with maintaining a focus on assembly rather than full-scale semiconductor manufacturing.