India aims to develop intellectual property (IP) across all six critical segments of the semiconductor value chain and shift from being an assembly and services base toward becoming a “product nation”, officials said, according to ANI. The stated vision is to build a complete electronics ecosystem that reduces import dependence and strengthens strategic self-reliance.
Key Highlights
- India targets IP in all six critical semiconductor segments.
- The goal is to move from assembly toward a 'product nation'.
- Emphasis on capital equipment, deep-tech startups and IP creation.
- A stated aim is to cut import dependence, including for defence.
- MeitY had approved 23 design projects and backed 70+ firms by early 2026.
From Assembly to IP
The ambition marks a step up from attracting fabrication and assembly to owning the designs and IP behind chips. Officials cited by ANI stressed capital equipment, deep-tech startups and IP creation, with defence applications such as drones and missiles among the strategic drivers of self-reliance.
India has been building this base for some time. EngineersGarage reported that by January 2026, the Ministry of Electronics and Information Technology (MeitY) had approved 23 design projects and supported more than 70 firms with infrastructure, helping seed a design ecosystem.
The push at a glance
| Element | Detail |
|---|---|
| Goal | IP across all six critical segments |
| Vision | Move toward a 'product nation' |
| Focus areas | Capital equipment, deep-tech, IP |
| Design projects approved | 23 (by early 2026, MeitY) |
| Strategic driver | Defence self-reliance |
Investor Interest Builds
Private capital is following the policy. The Economic Times reported that Indian semiconductor startups raised about $92 million in the first five months of 2026, with several design-focused firms each raising upwards of $10 million. This complements earlier government-backed design incentives, including the chip design centres detailed in our report on the India Semiconductor Mission.
Who It Affects and How
Engineers and startups: A shift toward IP and design widens high-skill opportunities and the potential for homegrown chip firms.
Defence and strategic sectors: Domestic IP reduces reliance on imported chips for sensitive applications such as drones and missiles.
The economy: Success would cut a large import bill over time and move India up the electronics value chain.
The Road Ahead
Building IP across the full chip stack is capital-intensive and takes years, and India still lacks large-scale commercial fabrication. Analysts caution that design excellence must eventually be matched by manufacturing and a deep talent pipeline for the 'product nation' goal to be realised.
Frequently Asked Questions
What is India's semiconductor goal?
To develop IP across all six critical chip segments and become a 'product nation' rather than only an assembly base.
Why does it matter for defence?
Domestic chip IP reduces reliance on imports for sensitive uses like drones and missiles.
How much have startups raised?
Indian semiconductor startups raised about $92 million in the first five months of 2026.
Sources
Abhijit Chowdhury
Staff Reporter
Editorial administrator for Eastern Times.
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