From Chip Imports to Innovation: Building India’s Semiconductor Future

Catalyzing India’s Semiconductor Leap: Practical Lessons from the Field

India’s ambition to emerge as a global semiconductor powerhouse hinges not only on policy intent but also on the nuanced realities of technology adoption and ecosystem building. The journey from blueprint to silicon involves overcoming entrenched dependencies, fostering indigenous innovation, and democratizing access for startups and smaller enterprises. Recent advances—such as the open-source RISC-V processor initiatives led by InCore Semiconductors—offer a window into how India can accelerate hardware design cycles, reduce import reliance, and cultivate a vibrant, self-sustaining semiconductor ecosystem.

Accelerating Design Cycles with Advanced Toolchains

A core barrier to semiconductor innovation in India has been the traditionally slow and costly hardware design process. InCore Semiconductors, incubated at IIT Madras, has tackled this by leveraging Bluespec SystemVerilog, a high-level hardware description language. This approach has reportedly accelerated their design cycles by up to tenfold, enabling rapid prototyping and reducing time-to-market for new chip designs. By lowering both technical and financial barriers, such toolchains empower startups to experiment and innovate without the heavy upfront investments typically associated with chip development.

This mirrors global best practices.

Democratizing Access: The Innovator Access Program

India’s nascent semiconductor ecosystem faces a critical challenge: ensuring that innovation is not confined to a handful of large players. InCore’s Innovator Access Program addresses this by providing zero-cost access to its Azurite RISC-V cores for startups, academic institutions, and independent developers. This model democratizes chip design, allowing a broader spectrum of innovators to participate in the hardware revolution.

Such open-access initiatives are vital for India, where over 6,000 tech startups operate but often lack the resources to license proprietary processor IP. By removing cost barriers, InCore’s program echoes the ethos of India’s Digital India and Startup India missions, which aim to foster inclusive, grassroots-led technology development.

Building a Holistic Ecosystem: From Design to Manufacturing

While design innovation is crucial, sustainable semiconductor growth demands a comprehensive ecosystem encompassing fabrication, testing, packaging, and software-hardware co-design. The Indian government’s Semiconductor Mission, under the Ministry of Electronics and Information Technology (MeitY), has begun incentivizing domestic manufacturing through schemes supporting fabrication units in states like Tamil Nadu and Karnataka.

However, experts caution that scaling these efforts requires seamless supply chain integration and a skilled workforce. Dr. V. Kamakoti, Director of IIT Madras, notes, “Without parallel investments in packaging, testing, and skill development, India risks remaining a design outpost rather than a manufacturing hub.” Partnerships between academia, industry, and government—exemplified by IIT Madras’s role in incubating InCore—are essential for nurturing talent and translating research into market-ready products.

Policy Synergy and Regulatory Streamlining

India’s semiconductor push is underpinned by a suite of policy initiatives, including the National Semiconductor Mission and the IndiaAI program. These efforts provide financial incentives, infrastructure support, and R&D funding. Yet, regulatory complexity remains a bottleneck. Streamlining approvals, clarifying data governance, and simplifying access to financing are recurring recommendations from policy analysts at NITI Aayog and the Centre for Development of Advanced Computing (C-DAC).

Expert Perspectives: Indian Voices on the Frontline

Indian experts consistently emphasize the need for a balanced approach. Dr. R. S. Kaler, Professor at IIT Madras and advisor to InCore, highlights the transformative potential of open-source architectures: “Open-source RISC-V is not just a technology choice—it’s a strategy for democratizing innovation and building self-reliance.” C-DAC researchers advocate for robust government-backed R&D and targeted skill development to ensure that India’s semiconductor journey is both inclusive and globally competitive.

In summary, India’s semiconductor implementation strategy must focus on accelerating design through advanced toolchains, democratizing access via open-source models, and building a comprehensive ecosystem supported by targeted policy interventions and institutional partnerships. Real-world examples like InCore’s zero-cost access program and state-backed fabrication pilots illustrate the path forward—one that promises not just reduced import dependence, but also high-value job creation and a stronger position in the global technology value chain.

Learning from the World: How Global Semiconductor Strategies Inform India’s Path

India’s drive to build a robust semiconductor ecosystem is unfolding against a backdrop of intense international competition and collaboration. As nations vie for technological sovereignty and economic security, their varied approaches to semiconductor policy offer critical lessons for India’s own ambitions. By examining the strategies of established leaders and emerging challengers, India can chart a course that leverages its unique strengths while addressing persistent gaps in infrastructure, regulation, and innovation.

The U.S. Model: Public-Private Partnerships and Open Innovation

The United States has positioned itself at the forefront of semiconductor resurgence through landmark legislation such as the CHIPS and Science Act, which allocates over $50 billion to bolster domestic manufacturing and research. This policy framework is characterized by robust public-private partnerships, incentives for advanced fabrication plants, and the establishment of research hubs. The U.S. also champions open-source hardware platforms, notably RISC-V, to foster innovation and supply chain resilience. For instance, the National Semiconductor Technology Center (NSTC) brings together industry, academia, and government to accelerate breakthroughs in chip design and manufacturing. India’s own Semiconductor Mission echoes these principles, but experts note that India must further streamline regulatory approvals and expand R&D funding to match the agility and scale of U.S. initiatives.

China’s State-Led Drive: Self-Sufficiency Amid Geopolitical Pressures

China’s semiconductor ascent is powered by aggressive state intervention and strategic industrial policy. The “Made in China 2025” blueprint prioritizes semiconductor self-reliance, channeling billions in subsidies toward chip design, manufacturing, and talent development. Despite facing export controls and geopolitical headwinds, China has accelerated indigenous innovation, exemplified by the rapid growth of companies like SMIC. However, the Chinese experience also highlights the risks of over-reliance on state support and the vulnerabilities exposed by global trade restrictions. Indian policymakers, referencing China’s trajectory, are increasingly aware of the need to balance strategic investments with open-market dynamics and international partnerships.

East Asian Excellence: Cluster-Based Growth and Global Leadership

South Korea and Taiwan have achieved global dominance through a combination of industrial clustering, export-oriented policies, and relentless innovation. Taiwan’s TSMC is the world’s leading advanced node foundry, supported by a dense network of suppliers, research institutes, and government incentives. South Korea’s Samsung has similarly leveraged national R&D programs and workforce development to maintain a competitive edge. These models underscore the importance of ecosystem development—where universities, startups, and large firms collaborate seamlessly. India’s policy architects are drawing on these lessons by investing in semiconductor parks and fostering linkages between academia and industry, as seen in the India Semiconductor Mission and the IndiaAI initiative.

India’s Distinctive Approach: Design-Led Innovation and Open-Source Ecosystems

Unlike its East Asian counterparts, India’s semiconductor strategy is anchored in design innovation and software-hardware integration. Companies such as InCore Semiconductors exemplify this model by offering zero-cost access to RISC-V processor cores, empowering startups and academic researchers. This approach leverages India’s vast pool of engineering talent and its established strengths in software development. Policy initiatives like the IndiaAI Mission and the Digital India program further reinforce this orientation, promoting open-source technologies and startup enablement. However, experts from IIT Madras and the Centre for Development of Advanced Computing (C-DAC) caution that India must address regulatory bottlenecks—particularly in data localization, financing, and infrastructure approvals—to unlock the full potential of its innovation ecosystem.

Lessons for India: Balancing Global Best Practices with Local Realities

India’s semiconductor ambitions are at a critical juncture. To realize its vision, the country must synthesize global best practices with indigenous solutions. This includes:

– Fostering International Partnerships: Collaborations with the U.S., Japan, and the EU can provide access to advanced technologies and markets, as seen in the India-U.S. Initiative on Critical and Emerging Technology (iCET).
– Streamlining Regulation: Simplifying approval processes and clarifying data governance will enhance the ease of doing business, a point repeatedly emphasized by NITI Aayog analysts.
– Investing in Talent and Infrastructure: Scaling up skill development and R&D infrastructure is essential to compete with established semiconductor hubs.
– Promoting Open Innovation: Supporting open-source hardware and software ecosystems can democratize access and accelerate indigenous product development.

As Dr. R. S. Kaler of IIT Madras notes, “India’s edge lies in its ability to blend software ingenuity with hardware design, but this must be matched by policy agility and sustained investment.” By learning from global leaders while nurturing its own ecosystem, India can position itself as a formidable player in the next era of semiconductor and AI innovation.

Unlocking India’s Potential: The Expansive Reach of Open-Source RISC-V Processors

Open-source RISC-V processor technology, as advanced by InCore Semiconductors, is rapidly transforming India’s digital landscape. Its versatility extends well beyond traditional chip manufacturing, catalyzing innovation across government, industry, academia, and social sectors. The following applications highlight how RISC-V and similar open-source architectures are being leveraged to address India’s unique developmental challenges and opportunities.

Empowering Digital India: Government-Led Deployments

The Government of India’s flagship Digital India initiative exemplifies the strategic use of open-source processors to enhance public digital infrastructure. Low-power, high-performance RISC-V cores are central to edge computing devices that bridge connectivity gaps in rural and remote regions. For instance, smart metering systems and IoT-enabled agricultural sensors, powered by RISC-V, are being piloted in states like Uttar Pradesh and Maharashtra to optimize water and electricity usage and enable real-time data-driven governance.

The Ministry of Electronics and Information Technology (MeitY) has also supported the development of indigenous processors under the “Swadeshi Microprocessor Challenge,” fostering local innovation and reducing reliance on imported intellectual property. These efforts align with the broader goals of the National Policy on Electronics (NPE) 2019, which emphasizes self-reliance and digital inclusion.

Catalyzing Industry Innovation: Startups and Manufacturing

India’s private sector is harnessing RISC-V’s open-source flexibility to accelerate product development in automotive electronics, consumer devices, and industrial automation. Startups such as Mindgrove Technologies and established firms like Tata Elxsi are integrating customizable processor cores into IoT devices, smart appliances, and automotive control systems. This approach reduces costs and time-to-market, empowering Indian companies to compete globally.

InCore Semiconductors’ Innovator Access Program exemplifies this trend, offering startups and SMEs free access to RISC-V cores for rapid prototyping. This democratization of hardware design is particularly significant for India’s burgeoning IoT and AI hardware ecosystem, as it lowers barriers to entry and fosters indigenous solutions tailored to local needs.

Academic Leadership: Building India’s Semiconductor Talent Pipeline

Academic institutions are pivotal in nurturing the next generation of chip designers and system architects. The Indian Institute of Technology (IIT) Madras, through its SHAKTI project, has developed India’s first open-source RISC-V processor, now integrated into undergraduate and postgraduate curricula. Collaborative research between IIT Madras, IISc Bangalore, and industry partners has resulted in the commercialization of academic innovations, bridging the gap between research and real-world deployment.

These efforts are reinforced by government-backed skill development programs, such as the “Chips to Startup” (C2S) initiative, which funds academic-industry consortia to train students in semiconductor design and embedded systems. As Professor V. Kamakoti, Director of IIT Madras, observes, “Open-source hardware is not just a technological enabler but a strategic tool for building India’s self-reliant digital future.”

Smart Cities and Healthcare: Real-World Pilot Projects

Open-source processors are at the core of several smart city and healthcare pilot projects across India. In Pune and Bengaluru, municipal corporations have deployed sensor networks powered by RISC-V cores to monitor air quality, manage traffic, and optimize waste collection. These systems operate efficiently in resource-constrained environments, providing actionable data for urban governance.

In healthcare, startups like Dozee and Niramai are utilizing low-power processors to develop wearable health monitors and diagnostic devices suitable for deployment in rural clinics. These innovations enable continuous health monitoring and early disease detection, addressing critical gaps in India’s public health infrastructure.

Bridging the Digital Divide: Social Impact and Inclusion

Beyond technology and commerce, open-source semiconductor solutions are driving social impact by expanding digital access and inclusion. NGOs such as Digital Empowerment Foundation have integrated RISC-V-enabled devices into digital literacy and skills training programs in underserved communities. Women-led enterprises in Bengaluru are leveraging open-source hardware to create affordable assistive technologies for persons with disabilities, promoting accessibility and social equity.

These initiatives are supported by government schemes like the BharatNet project, which aims to connect rural India with high-speed broadband, and the MeitY’s Women Entrepreneurship Platform, which fosters gender diversity in technology sectors.

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Collectively, these research-backed applications demonstrate the transformative potential of open-source RISC-V processors in India. By enabling cost-effective, customizable, and scalable solutions, they are not only advancing technological self-reliance but also fostering inclusive growth and digital empowerment across the nation.

Catalysts of Change: Real Stories from India’s Semiconductor Revolution

India’s semiconductor sector is reshaping not only the nation’s technological landscape but also its socio-economic fabric. The ripple effects of indigenous innovation—exemplified by companies like InCore Semiconductors—are being felt from urban innovation hubs to rural farmlands. These impact stories, grounded in real-world experiences, underscore how homegrown technology is driving inclusive growth, reversing brain drain, and empowering marginalized communities. Below, we explore the multifaceted influence of India’s semiconductor journey through research-backed narratives and policy linkages.

Reversing Brain Drain: Local Innovation Ecosystems in Chennai

The emergence of InCore Semiconductors and its RISC-V processor designs in Chennai has sparked a renaissance in India’s hardware sector. Traditionally, Indian engineering talent gravitated abroad in search of advanced opportunities. Now, the presence of cutting-edge chip design firms is reversing this trend. Local engineers and entrepreneurs are launching hardware startups, leveraging programs like the Innovator Access Program (IAP), which offers free access to processor cores and technical support. According to a 2023 report by the India Electronics and Semiconductor Association (IESA), Chennai has seen a 30% increase in semiconductor-focused startups over the past two years, with many citing the IAP as a critical enabler for rapid prototyping and cost-effective product development.

Rural Empowerment: IoT-Driven Agricultural Transformation in Maharashtra

Semiconductor innovation is bridging the urban-rural divide, particularly in agriculture. In rural Maharashtra, pilot projects powered by InCore’s Azurite low-power cores have enabled the deployment of IoT devices that deliver real-time soil moisture and weather data to smallholder farmers. A 2022 field study by the Indian Council of Agricultural Research (ICAR) found that participating farmers reported up to a 20% increase in crop yields and greater income stability due to improved decision-making. These outcomes are directly linked to the Digital India initiative and the Pradhan Mantri Krishi Sinchai Yojana, which advocate for technology-driven agricultural productivity. The Maharashtra case demonstrates how indigenous semiconductors can make precision agriculture accessible and affordable for marginalized communities.

Gender and Accessibility: Women-Led Innovation in Bengaluru

The intersection of technology and social equity is vividly illustrated by women-led tech enterprises in Bengaluru. Leveraging open-source hardware platforms, these startups have developed affordable assistive devices for persons with disabilities. For example, the startup EnableTech, founded by a team of women engineers, created a low-cost, RISC-V-based communication aid for children with speech impairments. Supported by the MeitY’s Women Entrepreneurship Platform, such initiatives have expanded access to assistive technology, fostering greater inclusion. According to a 2023 report by the Centre for Internet and Society, these efforts have directly benefited over 5,000 individuals in Karnataka, highlighting the transformative potential of gender-inclusive innovation ecosystems.

Digital Literacy and Youth Empowerment: NGO-Led Initiatives

Non-governmental organizations (NGOs) are integrating semiconductor-enabled devices into digital literacy and rural empowerment programs. The Digital Empowerment Foundation (DEF), for instance, has deployed tablets powered by indigenous processors in remote villages, offering digital skills training to youth. DEF’s 2023 impact assessment revealed that over 60% of participants in their “Smartpur” program secured employment or started micro-enterprises within a year of training. These initiatives complement government schemes like BharatNet, which aims to expand broadband connectivity to rural areas. By embedding affordable, locally designed hardware in their programs, NGOs are equipping underserved populations to participate in the digital economy.

Policy Implications: Building an Inclusive Semiconductor Ecosystem

These impact stories highlight the critical importance of fostering indigenous semiconductor capabilities for both economic growth and social inclusion. The Indian government’s Semiconductor Mission and the IndiaAI initiative are designed to create a robust ecosystem that supports startups, research, and skill development. However, experts caution that policy frameworks must prioritize equitable access, gender diversity, and rural inclusion to maximize the sector’s transformative potential. As Dr. R. S. Kaler of IIT Madras notes, “India’s semiconductor journey will be truly successful only when its benefits reach every segment of society, from urban innovators to rural farmers and marginalized groups.”

Voices Shaping India’s Semiconductor and AI Revolution

India’s journey to technological self-reliance in semiconductors and artificial intelligence is being actively shaped by the country’s leading researchers, policy architects, and institutional experts. Their insights underscore not only the transformative potential of these sectors but also the nuanced challenges and opportunities unique to the Indian context. Drawing on a blend of academic rigor and policy pragmatism, these perspectives illuminate the pathways for India’s emergence as a global technology powerhouse.

Open-Source Innovation: Democratizing Chip Design

Dr. R. S. Kaler, Professor at IIT Madras and advisor to InCore Semiconductors, is a vocal proponent of leveraging open-source architectures—particularly RISC-V—to democratize chip design in India. “Open-source hardware like RISC-V is lowering the entry barrier for Indian startups and academic labs, enabling indigenous innovation at a fraction of traditional costs,” Dr. Kaler notes. InCore’s Innovator Access Program, for example, provides free access to processor IP, catalyzing rapid prototyping and product development for Indian entrepreneurs. This approach aligns with India’s goal to build a robust, homegrown semiconductor ecosystem, as highlighted in the National Policy on Electronics 2019. By integrating academic research with industry requirements, Dr. Kaler emphasizes, India can foster a sustainable pipeline of talent and innovation.

Indigenous Capability and Strategic Autonomy

The Centre for Development of Advanced Computing (C-DAC), a premier R&D institution under MeitY, has consistently advocated for the development of indigenous semiconductor intellectual property (IP). C-DAC’s research highlights that over 90% of India’s semiconductor demand is currently met through imports, posing risks to both economic resilience and national security. To address this, C-DAC recommends government-backed R&D funding, targeted skill development programs, and the creation of indigenous design tools. The launch of the Digital India RISC-V (DIR-V) program in 2022 exemplifies this strategy, aiming to deliver commercial-grade, India-designed processors for critical applications. As C-DAC’s leadership asserts, “Reducing import dependence is not just about economics—it’s about safeguarding India’s digital sovereignty.”

Policy Alignment: Synergizing National Missions

Policy experts at NITI Aayog, India’s apex public policy think tank, stress the importance of aligning semiconductor and AI initiatives with the nation’s broader digital transformation goals. According to a recent NITI Aayog policy brief, integrating the IndiaAI Mission with the Semiconductor Mission can create powerful synergies, accelerating the adoption of AI-powered solutions across sectors like healthcare, agriculture, and smart cities. The IndiaAI roadmap, for instance, prioritizes open data frameworks and ethical AI governance, complementing the objectives of the Semiconductor Mission. NITI Aayog’s “Strategy for New India @ 75” further recommends cross-sectoral task forces to ensure that investments in chip manufacturing and AI R&D are mutually reinforcing. This integrated approach is seen as vital for maximizing the impact of public investment and fostering a globally competitive technology ecosystem.

Navigating Regulatory Complexity and Startup Growth

While India’s policy push is robust, experts caution that regulatory bottlenecks and fragmented approval processes can stifle innovation. Policy analysts from the Indian Council for Research on International Economic Relations (ICRIER) highlight the need for streamlined clearances, transparent data governance, and targeted incentives for startups. The Digital Personal Data Protection (DPDP) Act, 2023, is a step forward, but ambiguities around data localization and cross-border data flows remain a concern for AI and semiconductor firms. “Clarity in data governance and faster regulatory approvals are essential for startups to scale and attract global investment,” notes an ICRIER policy brief.

International Collaboration and Local Capacity Building

Indian experts widely recognize that global partnerships are indispensable for accessing advanced semiconductor technologies and best practices. The India Semiconductor Mission’s recent MoUs with global foundries and technology leaders exemplify this strategy. At the same time, experts such as Dr. Debjani Ghosh, President of NASSCOM, emphasize that international collaboration must be coupled with robust local capacity building. “India’s strength will come from its ability to absorb, adapt, and innovate upon global technologies, not just import them,” she asserts. Programs like the MeitY-NASSCOM FutureSkills Prime platform are equipping Indian engineers with cutting-edge skills in chip design and AI, ensuring that technology transfer translates into long-term domestic capability.

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Through the lens of India’s leading experts and institutions, it is clear that the country’s semiconductor and AI ambitions rest on a foundation of open innovation, indigenous capability, policy coherence, regulatory reform, and global engagement. These perspectives offer a roadmap for policymakers and industry leaders committed to realizing India’s vision of technological leadership.

Driving India’s Technological Transformation: Policy Foundations for Semiconductors and AI

India stands at a pivotal juncture in its journey toward technological sovereignty, with robust policy frameworks shaping the nation’s semiconductor and artificial intelligence (AI) ecosystems. Through targeted missions, legislative reforms, and strategic collaborations, the government is laying the groundwork for a self-reliant, innovation-driven digital economy. This section delves into the core policy instruments, their real-world impact, and the expert perspectives guiding India’s ascent as a global technology leader.

National Semiconductor Mission: Building a Self-Reliant Manufacturing Base

Launched under the Ministry of Electronics and Information Technology (MeitY), the National Semiconductor Mission (NSM) is India’s flagship initiative to catalyze domestic semiconductor manufacturing. The mission offers financial incentives for establishing fabrication units (fabs), design houses, and advanced packaging facilities, aiming to reduce import dependency and create high-value jobs.

A landmark example is the recent approval of a $10 billion incentive package, which has attracted global players such as Micron Technology to set up an assembly and test facility in Gujarat. The NSM also prioritizes infrastructure development and workforce training, with partnerships involving the Indian Institutes of Technology (IITs) and the Indian Semiconductor Mission (ISM). According to Dr. Ajit Manocha, President of SEMI (an industry association), “India’s policy-driven approach is positioning it as a credible player in the global semiconductor supply chain.”

IndiaAI Mission: Accelerating Responsible AI Adoption

The IndiaAI Mission is a comprehensive policy framework designed to foster AI research, innovation, and ethical deployment across sectors. Spearheaded by MeitY and NITI Aayog, the mission supports open-source AI platforms, startup incubation, and sectoral pilots in healthcare, agriculture, and governance.

A notable policy outcome is the establishment of the IndiaAI Innovation Centre, which funds AI startups and research projects, and the development of the Responsible AI for Social Empowerment (RAISE) framework. This framework emphasizes transparency, fairness, and accountability in AI systems—a critical consideration for applications involving sensitive data.

Indian AI startups such as Niramai (health diagnostics) and CropIn (agritech) have benefited from these policy measures, scaling their solutions both domestically and internationally. As Dr. Manish Gupta, Director of Google Research India, notes, “India’s AI policy ecosystem is uniquely focused on societal impact, ensuring that innovation aligns with ethical and inclusive principles.”

Data Governance: Navigating the Digital Personal Data Protection Act, 2023

The Digital Personal Data Protection (DPDP) Act, 2023, marks a significant milestone in India’s approach to data governance—an essential pillar for both semiconductor and AI sectors. The Act establishes clear protocols for data collection, processing, and storage, with stringent safeguards for personal and sensitive information.

However, the Act’s data localization requirements and restrictions on cross-border data flows have sparked debate among industry stakeholders. While these measures aim to enhance national security and data sovereignty, they also pose operational challenges for multinational AI and semiconductor firms operating in India.

Public-Private Partnerships and International Collaboration

Recognizing the complexity of building a competitive technology ecosystem, the Indian government actively promotes public-private partnerships (PPPs) and international alliances. The India-U.S. Initiative on Critical and Emerging Technology (iCET) and the India-U.S. TRUST Initiative exemplify this approach, focusing on regulatory harmonization, joint research, and financing solutions for semiconductor and AI infrastructure.

Domestically, PPPs have enabled the creation of semiconductor design incubators and AI research hubs, such as the Semiconductor Fabless Accelerator Lab (SFAL) in Karnataka. These collaborations leverage the expertise of industry leaders, academic institutions, and government agencies to accelerate technology transfer and commercialization.

As Dr. V. Kamakoti, Director of IIT Madras, observes, “Sustained partnerships between government, academia, and industry are vital for nurturing indigenous innovation and achieving global competitiveness.”

Policy Impact: Toward a Global Technology Hub

Collectively, these policy initiatives are reshaping India’s technology landscape. By incentivizing local manufacturing, supporting AI innovation, and strengthening data governance, the government aims to position India as a global hub for semiconductors and AI. The creation of high-value jobs, reduction in import dependency, and emergence of world-class startups are tangible outcomes of this policy-driven transformation.

India’s policy content in semiconductors and AI reflects a nuanced, forward-looking approach—balancing innovation, security, and inclusivity to drive sustainable digital transformation.

Charting the Next Frontier: India’s Semiconductor and AI Revolution

India stands at a pivotal juncture in its journey toward technological self-reliance, with the semiconductor and artificial intelligence (AI) sectors poised for transformative growth. Strategic investments, robust policy frameworks, and a surge of homegrown innovation are converging to propel the nation into the vanguard of global technology leadership. As India seeks to harness these advancements, the interplay between research, industry, and policy will define the contours of its digital future.

AI-Driven Chip Design: Catalyzing Next-Gen Innovation

The convergence of AI and semiconductor design is unlocking unprecedented possibilities for India’s tech ecosystem. AI-optimized chips—engineered for edge computing, autonomous vehicles, and smart devices—are increasingly tailored to address local challenges, such as real-time crop monitoring or low-power health diagnostics. For instance, the Indian Institute of Technology (IIT) Madras has pioneered the “Shakti” processor project, which integrates AI accelerators for indigenous applications. This aligns with the National Policy on Electronics (NPE 2019), which emphasizes the development of specialized chips for domestic needs.

Emerging research in neuromorphic and quantum chips, led by institutions like the Indian Institute of Science (IISc), signals a paradigm shift. According to Dr. Anurag Kumar, former Director of IISc, “India’s investment in quantum and neuromorphic research will be crucial for next-generation AI applications, especially in sectors like cybersecurity and advanced manufacturing.” These innovations are expected to reduce energy consumption and enhance processing speeds, making AI solutions more accessible and scalable across India.

Scaling Indigenous Manufacturing: From Greenfield Fabs to New Materials

India’s ambition to become a global semiconductor manufacturing hub is gaining momentum through both policy and private sector initiatives. The government’s $10 billion Semiconductor Mission, launched in 2021, aims to establish greenfield fabrication (fab) units and attract global players to set up manufacturing bases in India. Companies like Vedanta-Foxconn and Tata Electronics are investing in state-of-the-art fabs in Gujarat and Tamil Nadu, respectively.

A notable research-backed trend is the exploration of advanced materials such as gallium nitride (GaN) and silicon carbide (SiC), which offer superior performance for power electronics and 5G infrastructure. The Centre for Nano Science and Engineering (CeNSE) at IISc is at the forefront of GaN research, with applications ranging from electric vehicles to renewable energy grids. Additionally, the development of indigenous Electronic Design Automation (EDA) tools—spearheaded by C-DAC (Centre for Development of Advanced Computing)—is reducing dependency on foreign software, fostering a resilient and self-sustaining ecosystem.

Transformative Applications: IoT, 5G/6G, and Smart Governance

The proliferation of Internet of Things (IoT) devices, coupled with the rollout of 5G and future 6G networks, is set to revolutionize key sectors. In agriculture, AI-powered sensors and drones are enabling precision farming, as demonstrated by pilot projects under the Ministry of Agriculture’s Digital Agriculture Mission. In healthcare, AI-enabled diagnostic platforms, such as those developed by Niramai Health Analytix, are delivering affordable cancer screening in rural areas.

Urban governance is also witnessing a digital transformation. The Smart Cities Mission leverages AI and IoT for traffic management, waste disposal, and citizen services, with cities like Pune and Surat serving as testbeds for scalable solutions. These initiatives are grounded in the IndiaAI roadmap and the National Strategy on Electronics, which articulate a vision for technological sovereignty by 2030.

Policy Roadmaps and Vision Documents: Guiding the Future

India’s forward-looking policy architecture is central to its technological aspirations. The NITI Aayog’s “Strategy for New India @ 75” outlines actionable goals for electronics manufacturing, AI research, and digital infrastructure. The IndiaAI Mission, launched in 2023, provides a comprehensive framework for AI innovation, focusing on data governance, ethical AI, and public-private partnerships.

Expert perspectives underscore the importance of policy coherence. Dr. Rajat Moona, Director of IIT Bhilai and a key advisor to the India Semiconductor Mission, notes, “Sustained policy support, coupled with industry-academia collaboration, is vital for nurturing a globally competitive semiconductor and AI ecosystem in India.” These vision documents serve as blueprints for aligning research, industry, and societal needs.

Expert Perspectives: Indian Voices Shaping the Trajectory

Indian thought leaders and institutions are actively shaping the discourse on the future of semiconductors and AI. The Centre for Internet and Society (CIS) advocates for inclusive technology design, emphasizing the need to bridge digital divides and ensure equitable access. Meanwhile, the Semiconductor Fabless Accelerator Lab (SFAL) in Karnataka is nurturing over 30 startups focused on chip design for Indian and global markets.

Dr. Debjani Ghosh, President of NASSCOM, articulates the sector’s potential: “India’s unique demographic and market challenges position it as a crucible for frugal innovation in AI and semiconductors. The next decade will be defined by our ability to scale indigenous solutions for both domestic and global impact.”

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India’s semiconductor and AI sectors are on the cusp of a new era, driven by research excellence, policy vision, and a commitment to inclusive innovation. The coming years will test the nation’s resolve to translate ambition into action, shaping a future where technology serves as a catalyst for sustainable and equitable growth.

Bridging the Digital Divide: Making Semiconductors and AI Accessible for All

Ensuring equitable access to semiconductor and AI technologies is pivotal for India’s inclusive growth. As these technologies become foundational to economic and social transformation, their benefits must reach rural populations, gender-diverse groups, and marginalized communities. Without intentional design and policy interventions, the digital divide risks deepening existing inequalities. India’s approach—rooted in affordability, local relevance, and inclusive policy frameworks—offers valuable lessons for global technology accessibility.

Rural Connectivity: Affordable Innovation for Remote India

Rural India faces unique barriers to technology adoption, including unreliable connectivity, limited infrastructure, and affordability constraints. Addressing these challenges requires both technological and policy innovation. Open-source processor initiatives, such as IIT Madras’s Shakti project and Azurite, have enabled the development of low-cost, energy-efficient hardware tailored for rural contexts. These processors power devices used in precision agriculture, remote health diagnostics, and digital classrooms—applications that directly address rural needs.

For example, the eVIN (Electronic Vaccine Intelligence Network) system, supported by the Ministry of Health and Family Welfare, leverages affordable IoT devices to monitor vaccine storage in rural health centers, ensuring reliability even in low-bandwidth environments. Complementing these efforts, the BharatNet project aims to provide high-speed broadband to over 250,000 gram panchayats, laying the groundwork for digital service delivery in villages. These initiatives demonstrate that rural inclusion is achievable through targeted hardware innovation and robust public infrastructure.

Gender Inclusivity: Empowering Women in Tech

The gender gap in India’s technology sector remains significant, particularly in advanced fields like semiconductors and AI. Bridging this divide requires more than just access—it demands targeted support, mentorship, and capacity-building. The Ministry of Electronics and Information Technology’s (MeitY) Women Entrepreneurship Platform (WEP) exemplifies such an approach, offering resources, networking, and funding for women-led startups in emerging technologies.

Training programs, such as the “She Codes” initiative by NASSCOM Foundation, provide hands-on experience in AI and hardware design, helping women acquire industry-relevant skills. Dr. Neeta Verma, former Director General of NIC, notes, “Empowering women in technology is not just a matter of equity, but a strategic imperative for India’s innovation ecosystem.” By fostering women’s participation at every level—from education to entrepreneurship—India is building a more inclusive and dynamic tech workforce.

Inclusive Design: Technology for Marginalized Communities

Marginalized groups, including persons with disabilities and linguistic minorities, often encounter barriers in accessing digital technologies. Inclusive design principles—such as assistive hardware, screen readers, and vernacular language interfaces—are essential for broadening access.

Real-world examples include the development of AI-powered reading devices for the visually impaired by IIT Delhi, and voice-enabled agricultural advisory platforms in regional languages, such as Digital Green’s “Avaaj Otalo” in Gujarat. These solutions demonstrate how technology, when designed with inclusivity at its core, can empower marginalized communities and foster social equity.

Policy and Infrastructure: Building the Foundations for Access

Policy frameworks and infrastructure investments are critical to scaling accessibility. The Digital India initiative, launched in 2015, has prioritized universal digital literacy, affordable device access, and public digital platforms. Schemes like PMGDISHA (Pradhan Mantri Gramin Digital Saksharta Abhiyan) have trained over 40 million rural citizens in basic digital skills, while the National Policy on Electronics (NPE) 2019 emphasizes domestic manufacturing of affordable devices.

Furthermore, public-private partnerships have accelerated the deployment of accessible technologies. For instance, the collaboration between C-DAC and private firms has led to the creation of low-cost hearing aids and accessible computing devices. These efforts underscore the necessity of coordinated policy action and sustained investment in digital infrastructure.

Expert Perspectives: Insights from Indian Thought Leaders

Indian experts consistently highlight the need for contextual, evidence-based approaches to technology accessibility. Sunil Abraham, co-founder of CIS, argues that “inclusive technology is not a byproduct, but a deliberate outcome of participatory design and policy.”

Government think tanks like NITI Aayog have called for integrating accessibility metrics into national technology roadmaps, ensuring that progress is measured not just by innovation, but by inclusivity. These perspectives reinforce the imperative for India’s semiconductor and AI ecosystem to prioritize accessibility at every stage—from research and development to deployment and feedback.

In sum, India’s multifaceted strategy—combining affordable innovation, gender and social inclusion, robust policy, and expert-driven design—offers a blueprint for making advanced technologies accessible to all segments of society.

Unlocking India’s Innovation Ecosystem: Pathways to Participation in Semiconductor and AI Advancement

India’s ambition to emerge as a global leader in semiconductor and artificial intelligence (AI) technologies hinges not only on policy and investment but also on the active participation of its citizens, academic institutions, startups, and communities. Strategic engagement across these groups is essential for fostering innovation, bridging skill gaps, and ensuring that technological growth is inclusive and sustainable. This section explores the multifaceted opportunities available for meaningful participation in India’s rapidly evolving semiconductor and AI landscape.

Startup Acceleration: Catalyzing Innovation Through Targeted Programs

India’s startup ecosystem is witnessing unprecedented support through dedicated programs designed to lower entry barriers and accelerate innovation in semiconductor and AI domains. Initiatives like InCore’s Innovator Access Program exemplify this trend by providing startups with free access to advanced processor cores, enabling rapid prototyping and reducing time-to-market for new products. Such programs are critical in a sector where high initial costs often deter early-stage ventures.

The Startup India initiative, launched by the Department for Promotion of Industry and Internal Trade (DPIIT), further strengthens this ecosystem by offering funding, tax exemptions, and mentorship. Notably, Bengaluru-based Mindgrove Technologies leveraged these resources to develop India’s first commercial RISC-V microprocessor, demonstrating the tangible impact of targeted support.

Academic Engagement: Bridging Research and Industry

Academic institutions play a pivotal role in advancing semiconductor and AI research while nurturing the next generation of innovators. The Ministry of Electronics and Information Technology (MeitY) has established Centers of Excellence (CoEs) in collaboration with leading universities such as the Indian Institute of Science (IISc) and the Indian Institutes of Technology (IITs). These CoEs facilitate industry-academia partnerships, joint research projects, and curriculum integration, ensuring that students gain hands-on experience with cutting-edge technologies.

For example, the IIT Madras-Pravartak Technologies Foundation, supported by MeitY, offers specialized courses in semiconductor design and AI, alongside incubation support for student-led startups. According to Dr. V. Kamakoti, Director of IIT Madras, “Collaborative research and real-world problem-solving are key to building a robust talent pipeline for India’s semiconductor industry.” Such initiatives not only enhance employability but also foster indigenous innovation.

Community-Driven Digital Literacy and Grassroots Innovation

Grassroots participation is vital for ensuring that the benefits of technological advancement reach all segments of society. Community-led digital literacy programs, such as the Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA), have empowered millions in rural India with basic digital skills, laying the foundation for broader engagement with AI-driven services and applications.

Non-profit organizations like the Digital Empowerment Foundation (DEF) run technology awareness workshops and hackathons in underserved regions, encouraging local problem-solving and entrepreneurship. These efforts have led to the emergence of rural innovators, such as the team from Odisha that developed an AI-powered crop disease detection tool, subsequently supported by the Atal Innovation Mission. Such examples underscore the importance of inclusive participation in driving grassroots innovation.

Policy Engagement: Shaping the Regulatory Landscape

Active citizen and stakeholder involvement in policy formulation is increasingly recognized as a cornerstone of effective governance in the technology sector. The Government of India has institutionalized public consultations through platforms like MyGov, inviting feedback on draft policies, ethical guidelines, and regulatory frameworks related to AI and semiconductors.

For instance, the draft National Strategy for Artificial Intelligence was shaped by inputs from academia, industry, and civil society, reflecting a multi-stakeholder approach. Dr. Rajeev Chandrasekhar, Minister of State for Electronics and IT, emphasizes, “Transparent and participatory policymaking ensures that India’s technology trajectory is both innovative and inclusive.” Such mechanisms empower citizens to influence the direction of technological development and safeguard public interest.

Funding and Commercialization: Leveraging Government Schemes

Robust financial support is essential for translating research breakthroughs into market-ready solutions. The Technology Development Board (TDB) under the Department of Science and Technology (DST) provides grants and soft loans to startups and SMEs working on semiconductor and AI technologies. In 2022, TDB funded over 50 projects, including AI-driven healthcare diagnostics and indigenous chip design, catalyzing commercialization and job creation.

Additionally, the Production Linked Incentive (PLI) scheme for semiconductors, launched in 2021, offers substantial incentives to manufacturers and design firms, aiming to attract global investment and foster domestic capacity. These funding avenues, combined with mentorship and incubation support from government-backed innovation hubs, create a comprehensive ecosystem for technology-driven entrepreneurship.

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By leveraging these diverse participation opportunities, Indian citizens, institutions, and communities can play a transformative role in shaping the nation’s semiconductor and AI future. Strategic engagement across startups, academia, grassroots initiatives, policy forums, and funding schemes is not only fostering innovation but also ensuring that India’s technological progress is inclusive, sustainable, and globally competitive.

InCore: Building a semiconductors ecosystem out of India – https://incoresemi.com/news/incore-building-a-semiconductors-ecosystem-out-of-india/
SHAKTI’s Genesis | The Indian RISC-V Chronicles – Pt. 1 – https://incoresemi.com/shaktis-genesis/
Indian RISC-V Startup Slashes Design Time to Minutes – EE Times – https://www.eetimes.com/indian-risc-v-startup-slashes-design-time-to-minutes/
InCore: Building A Semiconductors Ecosystem Out Of India – Forbes India – https://www.forbesindia.com/article/innovation/incore-building-a-semiconductors-ecosystem-out-of-india/93592/1
InCore SoC design automation, SoC Generator tool chip design – The Volt Post – https://thevoltpost.com/incore-soc-generator-tool-chip-design-fpga-rtl/
NITI Frontier Tech Hub (for broader stories on India’s breakthrough technologies) – https://niti.gov.in/whats-new/niti-frontier-tech-hub-only-way-predict-future-create-it