India Needs a 20-Year Semiconductor Strategy

To succeed in semiconductor manfacturing, it is essential to reflect on the difference between being able to manufacture one line of chips and achieving semiconductor self-sufficiency or even becoming a key manufacturer. The current discourse masks this difference. The dominant narrative suggests that India is in a do or die situation, one in which building a fab now implies the elimination of critical strategic vulnerabilities. In contrast, another failure means India is resigned to a position of weakness in the information age. This understanding is misplaced. Getting one fab going will not make India a key manufacturer. We will still be dependent on manufacturing equipment, designs, and chips manufactured outside India. India needs to drop the dream of swadeshi semiconductors. Instead, it should aim to become a key player in a trusted, plurilateral semiconductor ecosystem that keeps key adversaries out. In our view, at least five specific parts of the puzzle need to fall in place.