The global semiconductor hierarchy is clear. Taiwan, through TSMC, leads in advanced chip manufacturing. The US maintains its edge in innovation and design, bolstered by the recent US$ 11 billion allocation for R&D via the CHIPS Act. South Korea, powered by Samsung and SK Hynix, excels in memory chips and cutting-edge packaging, while China's massive US$ 47 billion investment demonstrates its determination to achieve technological self-reliance, despite facing Western export controls.

India's current position in this landscape is both promising and precarious. The country's strength lies in semiconductor design, where it commands an impressive 20 per cent of the global workforce. The government's US$ 10 billion Production-Linked Incentive (PLI) scheme and the establishment of the India Semiconductor Research Centre signal serious intent. However, these initiatives, while laudable, pale in comparison to China's US$ 47 billion commitment, or the established technological ecosystems of Taiwan and South Korea.

India's Challenges

The challenges facing India's semiconductor ambitions are formidable. While other nations worry about advancing their technological edge, India must first address fundamental infrastructure gaps. The country struggles with basic requirements like uninterrupted power supply and clean water access — essential elements for semiconductor manufacturing. This is akin to trying to build a high-tech house without first laying proper foundations.

The talent equation presents another paradox. Despite India's large engineering workforce, the country faces a critical shortage of specialised manufacturing skills. While Indian engineers excel in chip design, the leap to manufacturing requires a different expertise altogether. The contrast with Taiwan and South Korea is stark — these countries have spent decades building specialised semiconductor talent pipelines through focused education and industry collaboration.

Moreover, India's semiconductor aspirations face a chicken-and-egg problem in supply chain development. Without a robust domestic manufacturing base, building a reliable supply chain becomes difficult. Yet, without a reliable supply chain, attracting manufacturing investments remains challenging. The established players face no such dilemma — Taiwan, South Korea, and the United States benefit from decades of ecosystem development and close-knit industry collaborations.

Overcoming Technological Challenges

However, it would be premature to dismiss India's semiconductor ambitions. The country's success in software development and space technology demonstrates its capacity to overcome technological challenges. The recent commitment to establish a dedicated Semiconductor Research Centre  and initiatives like the Chips to Startup programme show a strategic shift from mere policy announcements to concrete action.

To truly compete in the global semiconductor arena, India must make several critical pivots. First, infrastructure development needs to be prioritised with the same urgency as technological advancement. Second, bureaucratic processes must be streamlined to match the efficiency of competing nations. Third, India should leverage its existing strength in chip design to build bridges with global manufacturing leaders, creating pathways for knowledge transfer and ecosystem development.

The global semiconductor landscape is also evolving in ways that could benefit India. Geopolitical tensions have highlighted the risks of concentrated manufacturing bases, creating opportunities for new players. India's democratic credentials, large market, and skilled workforce make it an attractive alternative for companies looking to diversify their semiconductor operations.

Yet, success in the semiconductor sector requires more than just opportunity — it demands patience, persistence, and astronomical investments. While India has demonstrated commitment through its various initiatives, the real test lies in sustaining these efforts over the long term. The country must be prepared for a marathon, not a sprint.

Economic Security, Strategic Autonomy

The global semiconductor race is not just about technological superiority; it's about economic security and strategic autonomy. For India, the path to semiconductor success requires balancing ambitious goals with realistic expectations. Rather than attempting to replicate Taiwan's manufacturing prowess or America's innovation ecosystem overnight, India should focus on leveraging its unique strengths while systematically addressing its weaknesses.

The question isn't whether India can catch up to current semiconductor leaders — it's whether India can chart its own path to semiconductor relevance. With the right mix of policy support, infrastructure development and ecosystem building, India could emerge as a significant player in the global semiconductor landscape. But this transformation will require more than just government initiatives and capital investment — it demands a fundamental rethinking of how India approaches industrial development and technological innovation.

The global semiconductor race is on, and India has joined the track. Whether it can convert its potential into performance will depend on its ability to learn from global leaders while crafting solutions unique to its circumstances. The next decade will be crucial in determining if India can transform from a semiconductor design hub to a comprehensive semiconductor powerhouse.

(The writer is a fellow at the Pacific Forum. Views are personal)