India’s Strategic Transition from Semiconductor Consumer to Producer: Policy, Infrastructure and Market Readiness Analysis

Abstract

India has embarked on a transformative journey to emerge as a major player in the global semiconductor value chain, shifting from a consumer market to a potential production hub. This paper analyzes the effectiveness of recent policy interventions, such as the India Semiconductor Mission(ISM) and Production Linked Incentives (PLI), evaluates infrastructure and supply chain developments, and critically assesses challenges related to import dependence, skilled labor, and R&D. Using a policy and industry trend analysis framework, it is compared semiconductor strategy of India with established producers like Taiwan and South Korea. Findings suggest that while strategic collaborations and state incentives have laid promising groundwork, gaps remain in talent development, raw material sourcing, and indigenous innovation capacity. The study concludes with strategic recommendations of producing the raw materials domestically, ensuring un-interrupted Supply of critical raw-materials from foreign Countries, creating the adequate skilled workforce to strengthen India’s global semiconductor competitiveness.