India’s Semiconductor Ecosystem in 2026 ISM 2.0

My interest in semiconductors did not begin with fabs or government announcements. It began with a simple question I kept hearing again and again in different rooms:

Can India really build a semiconductor ecosystem—or are we too late?

That question stayed with me through different phases of my own journey. I was first exposed to the semiconductor world during my time at the National University of Singapore, where I saw how deeply semiconductors were woven into national strategy, industry, and research. It was there that I began to understand that chips were not just a technology story—they were an ecosystem story.

Later, at GlobalFoundries, 3rd largest foundry of the world, I saw semiconductor manufacturing up close. I saw the complexity, the discipline, the precision, and the sheer scale required to make fabs work. More importantly, I saw how fabs depend on a vast upstream network—materials suppliers, equipment vendors, process engineers, software tools, and logistics—most of which are invisible from the outside.

My time at IIT Bombay further strengthened this perspective. Working closely on India’s 1st memory chip with researchers and students, I saw the depth of technical talent India already has, and also the gap between academic capability and industrial execution. The potential was real—but it needed structure, direction, and connection to industry.

Over the years, I have since worked on more than half a dozen semiconductor-related projects, engaging with investors, manufacturers, policymakers, and ecosystem players. Across these experiences, one thing stood out clearly: the conversation around semiconductors in India was fragmented. Everyone was looking at one part of the puzzle—fabs, incentives, talent, geopolitics—but very few were looking at the system as a whole.

Most discussions inevitably came back to fabs. But the more I studied global semiconductor success stories—Japan, Taiwan, South Korea, and the United States—the clearer it became that fabs alone never created leadership. Real strength came from decades of work in materials, equipment, packaging, design tools, services, and accumulated know-how, built patiently alongside manufacturing.

At the same time, I saw something genuinely different happening in India. Domestic demand for electronics, EVs, power, and defense was rising rapidly. Indian engineers were already designing chips used across the world. Policy intent was becoming serious through programs like ISM. And yet, many capable companies and investors still did not know where to start—or what was truly realistic.

I wrote this report to bring clarity.

Not to sell a dream, and not to dismiss the challenges—but to lay out, in simple terms, where India has real advantages, where the numbers actually work, and which paths are worth pursuing. The intent is to connect global lessons with Indian realities, put data where opinions usually dominate, and help decision-makers see the ecosystem as a whole.

This report reflects my attempt to step back and answer one practical question:

If you are an investor, an operator, or a policymaker today—where should you place your bets in India’s semiconductor journey?

If this work helps even a few people make better decisions, avoid obvious mistakes, and build something durable, then it has done what I hoped it would.