India's Semiconductor Failure


India is a semiconductor design powerhouse. Nearly every major semiconductor company has a presence in India, designing some of the most advanced chips in the world.


But once those designs are completed, they are sent to the United States, China, South Korea or Taiwan to fabricate.


It begs the question. Why can't India fabricate any of the chips they lay out?



In the 1980s, the Indian government attempted to follow China, Taiwan, Malaysia, Korea, and Singapore in creating their own semiconductor manufacturing national champion.


Things got off to a promising start, but then disaster struck. And the company - along with India's entire semiconductor manufacturing industry - hasn't recovered since.




Chandan Bhat

I didn't know India even had a plan for semiconductor manufacturing.



Hope Dealer

What timing dude, India and TSMC just had a talk over setting up 7.3 billion USD, semiconductor development plants in India.  



Mr. Uthamaputhiran

India has top talent and the capability in almost all major industries. Most intelligent people are pushed out of the country because the old guard doesn't want change.



Adithya Vasudevan

Replace "Semiconductor" with names of other advanced Industries, and you have a script for why India missed the manufacturing bus entirely.



Allen Pradhan

I important thing you forgot about the tough sanctions that were placed on India from 1998-2008 after the Nuclear tests of 1998. As a result SCL wasn’t able to acquire critical components from US and EUROPE. The sanctions we so tough that India couldn’t even get SUPER COMPUTERS so we had to make our own from scratch. So after the sanctions were lifted in 2008 SCL was able to restart manufacturing of chips



Mannu Dwivedi

It really shame their is no indian reporter who cover indian plight of semiconductor industry



Krishnan Unni Madathil

It goes to a larger truth - India sorely missed out on the electronics manufacturing revolution which is was lifted Japan, Korea, Taiwan, Singapore and Malaysia after the WW2. By the time India realised, it was too late. She was always playing catch-up and the economies of scale had already been realized elsewhere. Tough lesson but one to keep in mind.




I remember back in 2015 there was a lot of craze of semiconductor manufacturing to start here but then in 2016 the government of Gujarat said it won't spend money and expected private companies to lead the funding, or something similar and then the whole thing fizzled out. Tata, a month ago once again glared up hopes they want to start to manufacture semiconductors.



Stephen Kong

I was surprised to hear one fire accident would destroy the entire semi-conductor industry? It does not sound convincing enough for me. Even in those days, chip companies would have multi-sites with backup operations and expertises exactly for this kind of eventualities.




Phillip Mulligan

It seems semiconductor manufacturing tech is so insanely difficult and ultra expensive that it's even a miracle that any country can have a self sustaining semiconductor industry.  Even the US has sold out most of it's semiconductor industry to Taiwan and South Korea in hopes of leveraging scale of efficiencies and cost savings. Just one single CPU generation costs billions and billion of dollars just to tool up for.  It's crazy.



Saptarshi Sarkar

As an Electronics and Communication Engineering student, this is really heartbreaking



Karthik Sathyanarayanan

It's an immense tragedy.



L Sequeira

Instead of removing barriers and bureaucracy to the private sector, the government decided to get into the business itself, like it did before, making light bulbs, tractors, watches, telephones and telephone exchanges and on and on to disastrous effect.



Balaji Gururajan

yes we missed the semiconductor revolution in the 80's and it is hard to get back. Many southeast Asian countries made use of it and are top players now.



Khalid Hamid

All talent leave India as soon as they have the opportunity. As long as there is burgeoning problem such as corruption, weak judiciary and law enforcement, unemployment, bureaucracy and lack of political will at the top India’s growth will be at snail pace with major inequality.




It was government intervention that messed the whole thing up. China started a new project a few years ago and got a veteran from TSMC to head up the building of a new fab.



Manish Vyas

Indian government and TSMC are in talks to bring manufacturing to India. Let’s see if this will work out.




TATA is step into semiconductor manufacturing, finally a good sign!!




 I wonder why Indian had customs duty on fab equipment? Typically such duties are to protect domestic makers of such equipment. Which don't exst in India, I believe?




Tanishq bhaiji

Indian companies can spend enormous amounts of money but they need guaranteed gains.



Bryan Smith

It took EIGHT YEARS to reopen after the fire.  That shows a massive lack of urgency.  You can’t run any business, if it can’t recover from setbacks.



Strong Challenger

If you want something said, ask India.

If you want something done, ask China.




Sailesh Mohanty

Just today i got the news that Taiwan's TSMC is going to invest 7.5 BILLION DOLLARS  for setting up SEMICONDUCTOR FACTORIES..i hope Indian govt get the requisite expertise and Try to promote indigenous SEMICONDUCTOR MANUFACTURING Players to step up and ultimately HELP INDIA BECOME SELF-RELIANT!!




Funny thing is....many Indians working in these fields in other countries



BT20MEC047 Jeet Bhakta

"Failure is the first step towards sucess" - Albert Einstein



Yen River

I have worked with Indians engineers when Ericssons was still manufacturing in Australia. They are very smart individuals. Just like the Chinese, they think outside the squares.



Pumpkin Eater69

Indian government wasted too many opportunities


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