India, Oct 15 : India must strengthen its domestic semiconductor capabilities to safeguard its technological independence and prepare for future conflicts increasingly shaped by artificial intelligence, cyber capabilities and space based systems, defence research experts have warned.
Experts associated with the Defence Research and Development Organisation (DRDO) have stressed that India needs to build expertise across semiconductor design, manufacturing, materials and deployment by 2047, the target year for the country’s Viksit Bharat vision.
Their assessment highlights a strategic challenge facing one of the world’s largest technology markets: India has a substantial pool of chip design professionals but continues to depend heavily on overseas suppliers for semiconductor products and manufacturing capabilities.
The concerns were outlined during discussions ahead of the Emerging Science, Technology and Innovation Conclave, where defence technology specialists examined India’s position in the global semiconductor industry and identified areas requiring sustained research and investment.
The experts argued that achieving complete leadership across every segment of the semiconductor supply chain may be unrealistic in the short term. However, developing internationally competitive capabilities in selected advanced technologies would allow India to play a more significant role in the global industry.
Dependence on imports poses a strategic challenge
Semiconductors are essential components in modern electronic systems, supporting everything from smartphones and telecommunications equipment to industrial machinery, satellites and defence platforms.
Their importance extends beyond consumer technology. Advanced chips are used in radar systems, communication networks, navigation equipment, surveillance platforms and computing systems that process large amounts of information.
As military operations become more dependent on digital infrastructure and automated analysis, access to reliable semiconductor supplies is increasingly connected to national security.
DRDO experts have warned that continued dependence on imported chips could leave India vulnerable if international supply chains are disrupted or access to strategically important technologies becomes restricted.
According to figures cited in the discussions, India accounts for around 20 per cent of the global workforce involved in chip design and contributes significantly to the data generated for artificial intelligence applications. However, the country imports approximately 90 per cent of its semiconductor requirements.
The contrast illustrates the difference between having strong engineering talent and possessing a complete domestic manufacturing ecosystem.
Chip design requires specialised knowledge and software, while fabrication depends on sophisticated production facilities, advanced equipment, high-purity materials and tightly controlled manufacturing conditions. Packaging, testing and integration are also essential stages in bringing a semiconductor product to market.
A country may develop expertise in one area while remaining dependent on foreign suppliers for other critical components of the process.
For India, the challenge is to expand domestic capabilities without overlooking the complexity and cost of competing in an industry dominated by established international manufacturers.
Building expertise in advanced chip manufacturing
Dr Anesh Sharma, director of DRDO’s Solid State Physics Laboratory, said India should identify specific areas where it can establish technological leadership and make meaningful contributions to the international semiconductor ecosystem.
The experts highlighted the importance of developing capabilities in advanced chip manufacturing, including two-nanometre technologies and three-dimensional chip structures.
Two-nanometre technology refers to an advanced semiconductor manufacturing generation. Such chips are associated with efforts to improve computing performance and energy efficiency, although actual results depend on the chip design, manufacturing process and intended application.
Three-dimensional chip structures can improve integration by arranging or connecting semiconductor components in multiple layers. These approaches may help address performance, power consumption and space constraints in specialised computing applications.
DRDO experts proposed that India work towards establishing at least two globally competitive fabrication facilities capable of contributing to advanced semiconductor production.
Achieving these objectives would require long-term investment, specialised equipment, advanced research facilities and collaboration among government institutions, universities and private manufacturers.
The country would also need to strengthen its ability to develop intellectual property and manufacturing processes that are not entirely dependent on external technology providers.
The experts cautioned that strategic independence cannot be achieved simply by establishing fabrication plants if the materials, equipment and essential technologies required to operate them continue to come from abroad.
Semiconductor mission seeks to expand the ecosystem
The Indian government has already introduced initiatives aimed at developing domestic chip manufacturing and attracting investment into the semiconductor industry.
The first phase of the India Semiconductor Mission received an allocation of Rs 76,000 crore and supported projects involving fabrication, assembly, packaging and related activities.
Approved projects include a semiconductor fabrication facility being developed by the Tata Group, along with packaging and assembly initiatives involving companies such as Micron Technology, Kaynes Semicon and CG Semi.
These projects are at different stages of development, with some facilities having begun commercial production.
The Union Cabinet subsequently approved the second phase of the India Semiconductor Mission in July 2026, with an outlay of Rs 1.27 lakh crore.
The expanded programme is intended to support a broader range of activities across the semiconductor value chain, including chip design, manufacturing, assembly and supply-chain development.
The objective is to create an environment in which companies can develop products domestically, establish manufacturing partnerships and gradually reduce dependence on imported components.
Government support is particularly important because semiconductor fabrication facilities require substantial capital investment and specialised infrastructure. Their commercial viability depends on production volumes, access to customers, reliable utilities and the availability of skilled personnel.
Developing a competitive industry will therefore require more than financial incentives. India must also build research capabilities, strengthen technical education and create dependable supply networks for materials and manufacturing equipment.
Quantum computing and photonic chips offer opportunities
The DRDO assessment identified several emerging technologies in which India could seek an early advantage.
These include quantum computing, photonic integrated circuits and neuromorphic computing, each of which offers different approaches to addressing complex technological challenges.
Quantum computing uses principles of quantum mechanics to process information. Although the technology remains at an evolving stage, it could eventually support specialised applications in areas such as scientific simulation, materials research and certain complex optimisation problems.
Photonic integrated circuits use light to perform or support functions traditionally handled by electronic components. They are being explored for applications requiring high-speed data transmission, optical communication and efficient processing of information.
Neuromorphic computing takes inspiration from the organisation and operation of biological neural systems. It aims to develop computing architectures that can process information in ways suited to certain forms of pattern recognition and low-power intelligent systems.
The experts suggested that India could benefit by concentrating research resources on such specialised fields rather than attempting to replicate every capability already established by global semiconductor leaders.
Developing intellectual property in these areas could give Indian institutions and companies opportunities to create products for both domestic and international markets.
However, translating laboratory research into commercially viable technologies requires sustained funding, access to advanced equipment and partnerships with manufacturers able to produce systems at scale.
Global supply chains remain highly specialised
The semiconductor industry depends on an international network of companies and research institutions, with different countries holding expertise in specific segments.
The United States has major strengths in chip design, computing architectures and semiconductor intellectual property. Taiwan and South Korea are important centres of advanced fabrication, while Japan and several European countries supply specialised materials, equipment and other critical technologies.
China has also developed significant manufacturing capabilities in several semiconductor segments.
This division of expertise means that building a complete semiconductor ecosystem is a long-term undertaking even for countries with substantial financial and technological resources.
For India, a practical strategy would involve identifying areas where domestic capabilities can become internationally competitive while building partnerships that support the development of the wider industry.
At the same time, access to essential materials and manufacturing technologies remains a strategic concern. If domestic production depends on imported inputs that become unavailable during a crisis, the resulting facilities may not provide the level of resilience policymakers seek.
Developing indigenous expertise in materials science, specialised equipment and manufacturing processes will therefore be important alongside investment in fabrication plants.
Chips are becoming central to defence preparedness
DRDO experts have linked semiconductor development to India’s ability to maintain technological readiness in future conflicts.
Modern defence systems increasingly rely on electronic sensors, secure communications, data processing and advanced computing. These capabilities help military organisations gather information, coordinate operations and respond to rapidly changing conditions.
A reliable domestic semiconductor base could support the development and maintenance of specialised equipment while reducing exposure to external supply restrictions.
It could also improve India’s ability to modify hardware for specific operational requirements and maintain critical systems over extended periods.
However, semiconductor independence alone would not guarantee defence readiness. Research, software development, systems integration, skilled personnel and testing facilities are equally important.
The objective is to ensure that Indian institutions can design, produce and maintain essential technologies without facing avoidable bottlenecks in critical supply chains.
DRDO Director General for Technology Management Anupam Sharma emphasised the growing importance of science, industrial capability, algorithms and data in determining outcomes in future conflicts.
The assessment reflects a broader shift in defence planning, where technological innovation is becoming increasingly important alongside conventional military equipment and personnel.
Skilled workforce and research investment will be essential
India’s established strength in chip design provides a foundation for further growth, but advanced manufacturing requires additional specialised expertise.
Universities, research laboratories and companies will need to work together to train engineers and scientists in fabrication processes, semiconductor materials, equipment maintenance, packaging and quality control.
Research institutions will also require access to advanced facilities where new materials and manufacturing techniques can be tested before commercial deployment.
Industry collaboration can help ensure that research addresses practical production challenges rather than remaining limited to laboratory demonstrations.
Stable policy support will be important because semiconductor projects often involve long development periods and significant financial risks. Companies need confidence that infrastructure, incentives and technical support will remain available as projects move from construction to commercial operation.
Domestic demand could provide another source of support. India’s semiconductor requirements are expected to exceed $200 billion by the financial year 2035, according to estimates cited in the discussions.
Demand from electronics manufacturers, telecommunications providers, automotive companies, data centres and defence organisations could create opportunities for Indian suppliers if domestic products meet requirements for cost, performance and reliability.
Long-term ambition requires measurable progress
India’s semiconductor ambitions will depend on the ability to convert policy commitments into sustainable manufacturing capacity, commercially successful products and advanced research outcomes.
The government has expanded financial support for the sector, while DRDO experts have called for a more focused strategy built around technological independence and leadership in selected fields.
Progress will need to be assessed through practical indicators, including the development of domestic intellectual property, the availability of critical materials, manufacturing yields, workforce skills and the ability of Indian companies to supply advanced products reliably.
Collaboration with international partners can help India acquire experience and integrate into global supply chains, while domestic research and production capabilities can strengthen long-term resilience.
The 2047 target provides a broad timeframe for developing these capabilities, but achieving meaningful progress will require consistent implementation well before that deadline.
For India, the central challenge is not simply to manufacture more chips. It is to develop the scientific knowledge, industrial infrastructure and specialised technologies needed to remain competitive in a world increasingly dependent on semiconductors.