Beyond Semiconductor Manufacturing: How India Could Use Its Chip Industry to Build Broader Engineering Capability
1. Introduction: Beyond the Chip Factory India's semiconductor ambitions are entering a new phase. Having moved from policy announcements towards the establishment of fabrication, assembly, testing, and packaging facilities, the country is now attempting to develop a broader industrial ecosystem around semiconductor manufacturing. The direction was evident at SEMICON India 2026, held in New Delhi from 17 to 19 September under the theme "Silicon to Systems: Building the Ecosystem". Alongside manufacturing investments, the government's Semicon 2.0 programme seeks to strengthen chip design, advanced packaging, equipment, materials, research, and talent development. The challenge is no longer simply to attract semiconductor investments, but to build the capabilities that can sustain and expand their economic value. The emerging partnerships illustrate the scale of this opportunity. Tata Electronics announced 16 memorandums of understanding with domestic and international ...