Admiral Dinesh K. Tripathi, the chief of the Navy, has emphasized the importance of a semiconductor policy in boosting India’s capacity for defense manufacture.
This claim emphasizes the strategic significance of semiconductors in contemporary military technology, where they are essential to cutting-edge systems like artificial intelligence, quantum computing, and GPS-guided missiles. A major issue is India’s dependency on imported semiconductors, which increased from ₹67,497 Crores in 2020–21 to ₹1,29,703 Crores in 2022–23.
The Indian government has responded to this by launching programs such as the India Semiconductor Mission and the roughly $10 billion Production-Linked Incentive (PLI) plan, which aims to promote domestic semiconductor production.
It is believed that establishing a strong ecosystem that promotes domestic defense production requires the creation of a comprehensive semiconductor policy. This regulation would enable strategic
In order to take advantage of global experience and improve India’s semiconductor capabilities, partnerships with foreign partners—such as those in Southeast Asia and the QUAD countries—are also being investigated.
Significant investments are being made to set up semiconductor manufacturing facilities in addition to policy support. To make chips for industries like AI and automotive, TATA Electronics, for example, is partnering with Taiwan’s PowerChip Semiconductor Manufacturing Corporation (PSMC) to establish a fabrication plant in Dholera, Gujarat.
Additionally, the government has set aside a sizable sum of money for modernizing the military, emphasizing the role of the private sector in defense production.
India needs a well-thought-out semiconductor policy in order to improve its national security posture and become self-sufficient in defense manufacture.
