Government may anchor market for India-designed semiconductor chips

The government could use its buying power and national security requirements to create a market for India-designed semiconductor processors, potentially becoming an anchor customer for startups struggling to find commercial clients, a senior official told Livemint. The official cited CCTV cameras as an example, where security concerns over foreign equipment created demand for Indian chips. The plan comes as India awaits the framework for the Rs 1.28 lakh crore Semicon 2.0 scheme, which seeks to incentivise chip fabrication and supply chain development.

Separately, an IEEE executive cautioned that India's semiconductor ambitions may face challenges with equipment and talent when transitioning to advanced node chips. Santhosh Sivasubramani told ETTelecom that fabrication challenges are significant for advanced nodes and that building a skilled workforce is essential. India's first fab is scheduled for 2028, and the government aspires to develop more advanced nodes in collaboration with innovation centres.