India pushes forward with semiconductor and “chips to ships” manufacturing drive

India is positioning itself as a major hub for semiconductor manufacturing, assembly, testing and related facilities. Government programmes such as the India Semiconductor Mission and Production Linked Incentive (PLI) schemes aim to reduce import dependence and attract multi‑billion‑dollar investments across states including Gujarat, Karnataka, Tamil Nadu, Telangana, Maharashtra and Uttar Pradesh. A feasibility study by a consulting firm highlights the capital intensity, technical complexity and supply‑chain challenges of setting up fabs, OSATs and design centres, while noting strong demand from automotive, AI, data‑center and defence sectors.

Prime Minister Narendra Modi reinforced the strategy during a visit to Melbourne, unveiling a “chips to ships” vision that links semiconductor production with broader manufacturing, emerging technologies such as 6G, and strategic defence and space initiatives. He cited the rapid growth of India’s startup ecosystem, private space launch efforts, the upcoming Gaganyaan crewed mission and plans for an Indian space station as evidence of the country’s expanding high‑tech capabilities. Modi credited the Indian diaspora for strengthening India‑Australia ties and underscored the government’s commitment to building an integrated industrial ecosystem.