BS EDIT: Why India must incentivise domestic chip R&D

By Business StandardPublished On Sep 3, 2024

New semiconductor ventures

Union Cabinet approved Kaynes Semicon’s semiconductor unit in Gujarat, part of a Rs 1.5 trillion investment in chip manufacturing

Government support

Capital subsidies amounting to Rs 50,000 crore are backing chip manufacturing and OSAT ventures, aiming to boost India’s semiconductor base

Shifting demand

By 2032, 60% of India’s chip demand will be for cutting-edge chips below 10 nm, while new plants focus on 28-48 nm chips

Future challenges

India may need to rely on imports for advanced chips and export legacy products, questioning the long-term value of current investments

Leverage domestic talent

India’s growing GCCs and expertise in chip design offer an opportunity to lead in R&D rather than focusing solely on manufacturing

Strategic R&D focus

Incentivising domestic R&D could position India as a global leader in chip technology, leveraging its talent and intellectual property