Why India’s Semiconductor Strategy Must Focus on Power Electronics

A few days back, L&T Semiconductor Technologies announced a strategic partnership with Hon Young Semiconductor (HYS), a Foxconn subsidiary, to co-develop high-voltage silicon carbide (SiC) wafers. These chips will power electric vehicles, industrial motors, and energy systems — marking a quiet but profound shift in India’s semiconductor story.

This isn’t just a business deal. It’s a signal. India’s chip ecosystem, long overshadowed by the glamour of AI and consumer electronics, is beginning to recognize the strategic value of “non-glamorous” chips—those embedded deep within the energy and industrial value chains. From metering and inverters to grid controllers and battery management systems, these chips form the invisible scaffolding of India’s energy transition.


The Case for Power Electronics

India’s energy infrastructure is expanding rapidly. EVs, charging stations, solar energy parks, wind energy parks, smart grids, and battery storage systems are no longer fringe — they’re now central to national progress. Each node in this value chain requires specialized chips:-

- High-voltage SiC chips for switching and conversion  

- Control chips for grid synchronization and load balancing  

- Embedded logic for metering, diagnostics, and predictive maintenance  

- Advanced PCBs for industrial-grade reliability

These aren’t bleeding-edge AI chips—but they’re mission-critical. And unlike AI chips, which demand deep IP and massive capital, power electronics offer modular entry points for Indian firms. Design, fab-lite manufacturing, packaging, and integration are all feasible within India’s current capabilities.


A Grounded Stocktaking 

Let’s be clear: India is not yet ready to design and fabricate top-tier AI chips (GPUs, TPUs, NPUs) at scale. These require:-

- Advanced process nodes (3nm, 5nm)  
- Proprietary architectures and IP blocks  
- Massive capital and global design experience

But electrical chips—especially those used in the energy value chain—are well within reach:-

- Voltage tolerance and thermal stability are the key design challenges—not ultra-miniaturization  
- SiC and GaN materials are increasingly available through global partnerships  
- Design tools and simulation platforms for power electronics are mature and accessible  
- Packaging and testing can be localized with existing industrial infrastructure

In short, India’s nascent semiconductor ecosystem can grow fast and credibly by focusing on power electronics.


Mukesh Ambani's 'Giga' Initiative 

At Reliance Industries Ltd's 45th Annual General Meeting in 2022, Chairman Mukesh Ambani announced the establishment of an electronics gigafactory in Gujarat, as part of the company’s ambitious foray into green energy industries. The new gigafactory will specialize in power electronics, which are critical for integrating different green energy systems — linking solar, batteries, hydrogen, and fuel cells. Ambani highlighted plans to build significant capabilities in the design and manufacturing of power electronics and related software.

This initiative is a significant development in India's power electronics ecosystem. It can open up new opportunities for Indian electronic component startups to join the power electronic chips ecosystem. 


Some Companies Are Already Moving

Several Indian electronic component manufacturers are already pivoting toward this opportunity. For example:-

- SFO Technologies (NeST Group) is expanding into advanced PCB manufacturing and embedded systems for aerospace, defense, and energy.  

- Kaynes Technology is setting up an ATMP (Assembly, Testing, Marking, and Packaging) facility in Telangana, focused on automotive and industrial electronics.  

- Avalon Technologies is investing in design-led manufacturing for clean energy and industrial automation.  

- Ruttonsha International Rectifier (RIR) is scaling up its portfolio of high-voltage rectifiers and thyristors for power grids and industrial drives.

These companies aren’t chasing AI — they’re building the electrical backbone of India’s industrial future.


The Way Forward: From Glamour to Grit

India’s semiconductor strategy must go beyond the glamour of AI. The real opportunity lies in electrical grit — chips that power grids, vehicles, and factories. These chips may not make headlines, but they make systems work. And they offer a credible, scalable path for India’s chip ecosystem to grow fast, create thousands of jobs, and build sovereignty.

It’s time to bet on power electronic chips — not as a fallback, but as a strategic frontier.

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