New Delhi, Sep 21: India has warned that the country’s rapidly expanding semiconductor industry could face growing risks from cyberattacks, misinformation campaigns and physical disruption as the government pushes ahead with plans to build a stronger domestic chip ecosystem.
Electronics and Information Technology Minister Ashwini Vaishnaw said semiconductor companies would need to prepare for a range of threats as India’s importance in global electronics and chip manufacturing increases. His comments come as the country seeks to expand domestic production and reduce dependence on overseas semiconductor supply chains.
Vaishnaw highlighted the possibility of cyberattacks targeting semiconductor facilities as well as attempts to disrupt operations through misinformation or physical interference. He said the industry should strengthen its preparedness as new manufacturing capabilities are established across the country.
The warning comes at a significant stage in India’s semiconductor programme. The government has been encouraging investments in chip fabrication, packaging, testing and other parts of the semiconductor supply chain. The objective is to create a broader domestic ecosystem that can support electronics manufacturing and improve the resilience of India’s technology sector.
Semiconductors are critical components used in smartphones, computers, automobiles, telecommunications equipment, industrial machinery and a wide range of other products. Any disruption to the supply of chips can therefore affect multiple industries simultaneously.
The minister’s comments underline the security challenges associated with developing such a strategically important sector. Semiconductor plants rely on highly automated systems, specialised equipment, digital networks and complex supply chains. Disruption to any of these areas could affect production.
Cybersecurity is particularly important because modern semiconductor facilities depend heavily on connected industrial systems. An attack against operational technology could potentially interfere with manufacturing processes, while attacks on corporate networks could compromise sensitive information or disrupt business operations.
Misinformation represents another potential risk. False reports concerning production problems, supply shortages or security incidents could create uncertainty among customers and investors. Companies may therefore need systems capable of identifying and responding quickly to misleading information.
Physical security will also remain important as India develops large-scale semiconductor facilities. Manufacturing plants contain sophisticated equipment and require uninterrupted access to electricity, water, specialised materials and other infrastructure. Protecting these facilities is consequently part of maintaining the reliability of the wider supply chain.
Vaishnaw’s warning also reflects the geopolitical importance of semiconductors. Countries across the world are investing heavily in domestic chip production as governments seek greater control over critical technology and reduce vulnerabilities created by concentrated supply chains.
India has been seeking to position itself as an alternative manufacturing destination as companies diversify production across different countries. The government’s semiconductor programme is intended to support this effort by providing financial assistance and developing the infrastructure required by chipmakers.
The country’s ambitions extend beyond semiconductor fabrication. A complete ecosystem requires packaging and testing facilities, equipment suppliers, materials companies, design firms and a skilled workforce. Building these capabilities simultaneously could help India establish a more integrated electronics manufacturing base.
The government is also preparing for additional investment under its semiconductor programme. IT Minister Ashwini Vaishnaw has said the next wave of investments under India’s semiconductor scheme is expected to begin within the next six months.
That expansion makes the question of security increasingly important. As more facilities become operational, the number of systems and organisations that need protection will also increase. Companies will have to coordinate cybersecurity measures with physical security and supply-chain monitoring.
The semiconductor industry faces a particularly complex security environment because production depends on specialised suppliers located across different countries. A disruption at one stage can have consequences elsewhere in the manufacturing chain.
India’s push also comes amid a broader global race to strengthen semiconductor capabilities. China, the United States, Taiwan, South Korea, Japan and European countries are investing in chip manufacturing and advanced packaging as demand for artificial intelligence and other computing technologies increases.
The rapid growth of AI is adding another layer of pressure. Advanced AI systems require large quantities of high-performance computing hardware, increasing demand for sophisticated processors and memory products. This has encouraged technology companies and governments to invest more heavily in semiconductor capacity.
Recent developments demonstrate the scale of that demand. Chinese memory-chip manufacturer CXMT has said its fifth-generation technology platform has entered mass production, while companies in the United States and Taiwan are also expanding their semiconductor capabilities.
India’s semiconductor strategy is therefore unfolding against a rapidly changing global technology landscape. Building domestic capacity could provide greater resilience, but protecting that capacity will require sustained investment in cybersecurity, infrastructure and skilled personnel.
For chip manufacturers, security cannot be treated solely as an information-technology issue. Production systems, suppliers, employees and physical facilities all form part of the same operational network. A weakness in one area could potentially affect the entire manufacturing process.
The government is consequently encouraging companies to consider security risks while expanding their operations rather than addressing them only after facilities become targets.
The warning also highlights how India’s growing role in semiconductor manufacturing could attract greater attention from actors seeking to disrupt critical technology infrastructure. Companies entering the sector are therefore likely to face increasing pressure to demonstrate that their facilities can withstand both digital and physical threats.
As India moves forward with new semiconductor investments, the ability to maintain secure and uninterrupted production will become an important part of the country’s broader technology ambitions. The government’s latest message makes clear that expanding chip manufacturing will need to go hand in hand with stronger protection against cyber, information and physical threats.