India's Semiconductor Ambitions: A Decades-Long Journey Ahead, Says 'Chip War' Author

India's Semiconductor Aspirations and Global Context

India's ambitious goal to become a major player in the global semiconductor industry has garnered significant attention worldwide. However, Chris Miller, author of 'Chip War: The Fight for the World's Most Critical Technology', suggests that this journey will be an "inevitably decades-long process" 1

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In an exclusive interview, Miller acknowledged India's potential, noting that the country is "now seeing more investment than ever in semiconductor manufacturing and design" 1

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. He emphasized the need to foster homegrown companies to create a robust domestic ecosystem, drawing comparisons to industry leaders like Taiwan and South Korea, whose chip industries took decades to develop since the 1970s 1

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The Global Semiconductor Landscape

The global semiconductor race is currently dominated by Taiwan Semiconductor Manufacturing Company (TSMC), which produces 99% of the world's AI accelerators 1

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. TSMC's chips are crucial for powering major AI systems, from generative models like ChatGPT to advanced data centers 1

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Miller highlighted the strategic importance of chips in the geopolitical landscape, noting that they now represent the largest flow of goods into China 1

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. This underscores the critical role of semiconductors in the ongoing technological competition between the United States and China.

India's Position and Challenges

While India aims to become a semiconductor powerhouse by 2047, aligning with its 'Viksit Bharat' mission, the country faces significant challenges 1

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. Miller identified talent and infrastructure as the two major hurdles to India's ambitions 2

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On the talent front, Miller stated, "India is arguably one of the world's top countries in chip design talent, second only to the United States" 1

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. However, expanding into manufacturing, testing, and packaging requires specialized skills across multiple disciplines, which will take time to develop 2

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Strategic Approach and Government Initiatives

Miller advised India to start with established technologies rather than immediately pursuing cutting-edge innovations like 2-nanometre or 3-nanometre nodes 1

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. This approach aligns with strategies adopted by European countries and Israel 2

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The Indian government has demonstrated its commitment to the sector by allocating ₹6,903 crore in the interim Budget, more than doubling the previous year's amount 1

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. However, experts argue that funding alone cannot bridge decades of technological and infrastructural deficits 1

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Future Outlook

While Miller expressed optimism about the current pace of progress, he reiterated that building full-scale capacity "will likely take a decade" 2

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. He emphasized the need for strategic planning and consistent investment, noting that "a single plant can take three or four years to build once you start construction, and there's usually a couple of years of planning beforehand" 1

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As India advances in semiconductor manufacturing, it must develop specialized infrastructure, including unique chemicals, materials, and tools 2

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. Despite the challenges, Miller concluded that "progress in this area is already visible, with ongoing efforts to establish the necessary infrastructure" 2

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