India’s semiconductor ambitions face obstacles

Significance

In September 2022, two seemingly coincidental developments appeared to boost India’s chances of seizing this opportunity: first, a decision by the central government to incentivise production and investment in the sector, and second, a tie-up between mining firm Vedanta and Taiwan’s Foxconn group for a semiconductor production plant in Gujarat.

Impacts

• Cyberattacks against India’s semiconductor firms will rise.
• Weakness in its electricity and water infrastructure will impede India’s ambition.
• Domestic semiconductor self-reliance will remain a central goal for several major players, including the United States, China and Japan.