IESA summit charts new semiconductor push

Landmark agreements, product unveilings and policy signals at the IESA Vision Summit 2026 have sharpened the country’s bid to emerge as a significant player in the global semiconductor value chain, as industry leaders and policymakers mapped out the next phase of chip manufacturing, design and talent expansion.

Held against a backdrop of supply chain realignment and geopolitical competition in advanced technologies, the annual gathering of the India Electronics and Semiconductor Association drew executives from domestic conglomerates, multinational chipmakers, equipment suppliers and start-ups. A series of memoranda of understanding announced at the event focused on wafer fabrication, compound semiconductors, chip design services, advanced packaging and workforce training.

The announcements come as the central government advances a semiconductor incentive programme valued at $10 billion, aimed at catalysing fabrication plants, display manufacturing and design-linked incentives. The policy push has already resulted in approvals for major projects, including the Tata Group’s semiconductor fabrication unit in Dholera, Gujarat, developed in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation. The project, expected to produce 28-nanometre chips and above, is positioned as a foundational step in establishing a domestic foundry ecosystem.

Another project moving ahead is a semiconductor assembly and test facility in Assam, led by Tata Electronics, while US-based Micron Technology is building a memory assembly and test plant in Sanand, Gujarat, with substantial public support. At the summit, industry representatives said the focus must now extend beyond announcements to execution, ecosystem development and global integration.

Kris Gopalakrishnan, chairman of IESA and co-founder of Infosys, told delegates that the sector’s growth would depend on sustained collaboration between government, academia and industry. He emphasised the need to scale research capabilities in areas such as compound semiconductors, silicon carbide and gallium nitride, which are critical for electric vehicles, renewable energy systems and defence applications.

Several high-impact partnerships unveiled during the summit targeted these segments. Agreements were signed to explore silicon carbide device manufacturing and to strengthen local capabilities in semiconductor equipment servicing, a niche long dominated by overseas suppliers. Participants said building capacity in equipment maintenance and refurbishment could reduce downtime and foreign exchange outflows while generating specialised employment.

Product launches by fabless design firms and start-ups underscored the growing strength of the design ecosystem. India accounts for roughly a fifth of the global semiconductor design workforce, with centres operated by companies such as Intel, Qualcomm, Texas Instruments and NVIDIA employing tens of thousands of engineers. Start-ups at the summit showcased chipsets for automotive electronics, industrial Internet of Things and secure communications, reflecting a shift from pure services to intellectual property creation.

Talent development featured prominently in the proceedings. Academic institutions and industry bodies signed agreements to expand semiconductor-focused curricula, cleanroom training facilities and internships. The Semiconductor Mission has outlined plans to train 85,000 engineers in advanced semiconductor skills over the coming years, while leading institutes including the Indian Institute of Science and several Indian Institutes of Technology are setting up dedicated semiconductor research centres.

Union Minister for Electronics and Information Technology Ashwini Vaishnaw, addressing the gathering, said fabrication facilities under construction were on schedule and that further proposals were under evaluation. He highlighted progress in establishing a domestic supply chain for chemicals, specialty gases and substrates, areas historically dependent on imports from East Asia.

Industry executives cautioned, however, that capital intensity and long gestation periods would test investor patience. A modern semiconductor fab can cost upwards of $10 billion and requires reliable power, water and logistics. Analysts note that sustained policy stability, predictable taxation and integration into global supply chains will be essential to attract anchor customers.

Geopolitical shifts have created openings. Heightened tensions between the United States and China, along with export controls on advanced chips and manufacturing equipment, have prompted multinational firms to diversify production footprints. While India is unlikely to compete immediately with Taiwan or South Korea in cutting-edge nodes, it is positioning itself in mature nodes, specialty chips and assembly, test and packaging.

At the summit, discussions also centred on trusted electronics for defence and space, with public sector undertakings exploring partnerships to localise critical components. The move aligns with broader strategic objectives to reduce vulnerability in sensitive sectors.

Venture capital participation at the event reflected rising investor interest. Funds specialising in deep technology announced commitments to back semiconductor start-ups, particularly in chip design, electronic design automation tools and advanced materials. Market observers said patient capital will be necessary given the sector’s high entry barriers.

Data presented at the conference indicated that the domestic semiconductor market could exceed $100 billion by the end of the decade, driven by smartphones, automotive electronics, industrial automation and data centres. Growth in electric mobility and renewable energy infrastructure is expected to accelerate demand for power electronics and compound semiconductors.

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Also published on Medium.