India is gaining renewed attention as global firms in the US, Japan, and Europe are urged to exclude Chinese chips from their non-China supply chains. This will open a significant market for Indian chipmakers. Best-selling tech author Chris Miller notes, “They need to find new capacity. That’s a role India can play.”
Miller, the author of Chip War: The Fight for the World’s Most Critical Technology, speaking in Bengaluru, highlighted the challenges Indian semiconductor manufacturers face in turning announcements into commercially viable projects. He emphasized the importance of building infrastructure and securing reliable suppliers of materials, chemicals, and tools. Once this ecosystem is established, it could create a snowball effect, attracting more global players.
“The broader electronics ecosystem in Bengaluru and Tamil Nadu is growing at an unprecedented rate,” Miller observed. However, he cautioned that establishing semiconductor facilities is a complex, costly endeavor. Referring to India’s plans for one semiconductor fabrication plant and four chip packaging facilities, he remarked, “These projects require specialized infrastructure, and it took Taiwan 30 years to become a major player. The timelines are long.”
Miller also pointed to the growing technology partnership between the United States and India, with semiconductors playing a pivotal role. “This relationship has deepened over the past few years and is unlikely to change, even with shifts in US administrations,” he said.
India’s efforts align with the government’s push to invest in the semiconductor ecosystem, focusing on integrating with global supply chains and boosting domestic production. “This complements India’s Make in India initiative and the US’ desire for closer partnerships with India,” Miller added.
He acknowledged the impressive progress India has made over the last three years, particularly in manufacturing and OSATs (Outsourced Semiconductor Assembly and Test). However, he cautioned that the journey from investment announcements to execution remains challenging worldwide.
“For leading-edge semiconductor manufacturing, investments are being concentrated in Taiwan, South Korea, and the US. India’s focus, however, lies in lagging-edge or foundational semiconductors,” Miller said. He also noted that China’s investment in foundational semiconductors surpasses the rest of the world combined.
Addressing the reshaping of the semiconductor industry, Miller identified two dominant trends: supply chain shifts driven by geopolitical factors and the transformative impact of artificial intelligence (AI). “AI is visibly influencing the chip industry, particularly in the production of AI processors. This ripple effect will extend to edge devices and persist for at least a decade,” he said.
Miller stressed that no country is entirely self-sufficient in semiconductors. “The global semiconductor supply chain is deeply interconnected. Countries rely on each other, whether for lithography machines from ASML or advanced fabrication in Taiwan,” he concluded.
Miller shared these insights during the 38th International Conference on VLSI Design, which focused on the theme Silicon Meets AI: Sustainable Innovations in Accelerated Computing, Secure Connectivity, and Intelligent Mobility.
