Electronics boom, policy push position India for semiconductor leadership

India's expanding electronics market, combined with targeted government support and a reconfiguration of global semiconductor supply chains, is creating a compelling opportunity for the country to establish a competitive chip manufacturing and design ecosystem, according to Ankush Wadhera, Managing Director and Partner at Boston Consulting Group. The convergence of these factors is attracting investment across the entire semiconductor value chain, extending well beyond fabrication plants and assembly facilities into higher-value segments of production and design.

Recent discussions around responsible artificial intelligence development are necessary guardrails but will not impede semiconductor sector growth, Wadhera said. Rather than serving as impediments, such regulatory conversations function as important speed-breakers to ensure sustainable industry practices. The semiconductor sector remains well-positioned to capture sustained demand from artificial intelligence applications across computing, graphics processing units, and memory components.

The AI-semiconductor nexus is expected to strengthen rather than weaken as the technology matures, with growing computational demands driving continued chip consumption. Multiple converging factors—from domestic consumption patterns to international supply chain realignment—are motivating investors to build capacity and capability across diverse semiconductor subsectors within India. This multi-faceted approach signals confidence in India's potential to graduate from component assembly to increasingly sophisticated manufacturing and innovation roles within the global semiconductor industry.