India’s Electronics Boom Masks a Deeper Dependence on Semiconductor Imports
India’s semiconductor industry is expanding, but dependence on imported chips remains a major challenge. New investments and manufacturing initiatives aim to strengthen domestic production and build a more resilient electronics supply chain.
A semiconductor microchip mounted on a printed circuit board. India is expanding domestic semiconductor manufacturing as it seeks to reduce dependence on imported chips.Image credit:Pexels
India’s electronics manufacturing industry is expanding rapidly, but its dependence on imported semiconductors remains a significant challenge. A new industry report highlights the gap between the country’s growing electronics production and its efforts to establish a self-reliant semiconductor ecosystem.
India’s annual semiconductor import bill has reached ₹2.8785 lakh crore, according to the State of India’s Semiconductor Industry 2026report released by the Data Security Council of India (DSCI) on October 23. The report estimates that India continues to depend on imports for 90–95 per cent of its semiconductor requirements.
The findings underline a central challenge in India’s technology ambitions: expanding the production of electronic devices while reducing dependence on foreign suppliers for the chips and components that power them.
Electronics production rises, but dependence persists
India’s electronics manufacturing industry has grown considerably over the past decade. According to government figures, electronics production increased from approximately ₹1.9 lakh crore in 2014–15 to ₹13.11 lakh crore in 2025–26. Electronics exports rose from around ₹38,000 crore to ₹4.24 lakh crore over the same period.
However, growth in electronics manufacturing does not necessarily mean that the components used in these products are manufactured domestically.
Semiconductors are essential to smartphones, computers, automobiles, telecommunications equipment and data centres. Their production involves complex processes requiring specialised facilities, advanced equipment, materials and highly skilled workers.
India has developed a substantial electronics assembly and manufacturing base, but building a semiconductor ecosystem requires investment across several stages, from chip design and wafer fabrication to assembly, testing and packaging.
The distinction matters because a country can manufacture and export electronic devices while continuing to import many of the high-value components used in them. Reducing semiconductor imports therefore requires strengthening domestic production capabilities rather than simply increasing the number of devices assembled within the country.
Five manufacturing units enter production
India launched the Semicon India Programme in 2021 with an initial outlay of ₹76,000 crore to establish a domestic semiconductor and display manufacturing ecosystem.
According to government figures and the DSCI report, 12 semiconductor manufacturing projects have been approved, involving investments exceeding ₹1.64 lakh crore. Five units have commenced commercial production.
The approved projects include silicon and silicon carbide fabrication facilities, a gallium nitride micro-LED display facility, and nine units focused on assembly, testing and packaging.
These facilities represent an important step towards establishing domestic semiconductor manufacturing capacity. However, the commencement of production does not, by itself, establish how much domestic demand the facilities can meet or how quickly they can reduce import dependence.
The government approved Semicon 2.0 in July 2026 with an outlay of ₹1,27,500 crore. The programme aims to strengthen research and development, chip design, manufacturing equipment, materials, workforce development and advanced packaging.
The broader objective is to develop an ecosystem in which domestic manufacturers can access more of the infrastructure and specialised services required to produce semiconductors.
Strengthening the supply chain
Semiconductor manufacturing depends on more than fabrication plants. It requires specialised materials, sophisticated machinery, reliable infrastructure, research capabilities and trained personnel.
A May 2026 roadmap by NITI Aayog identified India’s dependence on imported semiconductors and components as a vulnerability, particularly given the concentration of global manufacturing capacity in a limited number of countries.
Supply disruptions can affect industries ranging from automobiles and consumer electronics to telecommunications and defence. A shortage of critical chips can interrupt production even when manufacturers have sufficient capacity to assemble the final product.
India’s policy response has consequently extended beyond semiconductor fabrication. The Electronics Component Manufacturing Scheme seeks to develop domestic suppliers and strengthen the production of components used across the electronics industry.
Detailed view of organized electronic circuit boards in a production setting.Image credit:Pexels
Government figures published in September indicated that 106 projects had been approved under the scheme by August, with 38 approved plants already producing components.
Developing these supporting industries could help domestic manufacturers access more components locally. Nevertheless, the extent to which this reduces semiconductor dependence will depend on the types of components produced, their quality, cost and ability to meet industrial demand.
The workforce challenge
India’s established strength in semiconductor design offers another opportunity. The country has a large pool of engineers working in chip design and related technology services. Translating this advantage into manufacturing capacity, however, requires additional skills and infrastructure.
Operating semiconductor fabrication facilities involves specialised knowledge of materials, manufacturing processes, equipment maintenance and quality control. Assembly, testing and packaging also require trained technicians and engineers.
The DSCI report identifies workforce development as a priority, including the need to train approximately one lakh factory-floor technicians.
Such training will be essential if new facilities are to operate efficiently and expand production. Collaboration between industry, technical institutions and research organisations could help address the skills gap, although the availability of trained personnel alone cannot guarantee commercially competitive manufacturing.
Beyond factory announcements
India’s semiconductor ambitions reflect a wider effort to strengthen technological security and reduce exposure to international supply disruptions. Yet progress cannot be measured solely by the number of approved projects or the investments announced.
The more significant indicators will be sustained commercial production, manufacturing yields, domestic value addition, the development of local suppliers and the ability to meet demand at competitive prices.
India’s expanding electronics exports demonstrate the strength of its manufacturing growth. Its semiconductor import bill, meanwhile, illustrates the gap between assembling electronic products and producing the critical components within them.
Bridging that gap will require sustained investment in research, infrastructure, skilled labour and the supporting industries that make semiconductor production possible. Whether India’s new manufacturing projects can translate policy ambitions into a resilient domestic supply chain will determine how far the country can move towards semiconductor self-reliance.
Jishnu P is an Editorial Associate and Reporter at EdPublica. He holds a Master’s degree in Communication and Journalism from Pondicherry University, India, and a Bachelor’s degree in Physics.
India Builds Synthetic Biology Capacity for Medicines and Industrial Production
ESTIC 2026 brings scientists, policymakers and industry leaders together in New Delhi to discuss emerging technologies, including synthetic biology, AI and advanced manufacturing.
Synthetic biology uses engineered biological systems to develop new products and processes. Representational image. Image credit: Google DeepMind/ Pexels
India is developing research facilities and supporting projects that use engineered microorganisms to produce useful chemicals and other biological products. These efforts are part of a wider push to expand biotechnology-based manufacturing, a subject discussed at a meeting hosted by the International Centre for Genetic Engineering and Biotechnology (ICGEB) in New Delhi on October 26. The meeting was held ahead of the Emerging Science, Technology and Innovation Conclave ESTIC 2026, which begins in New Delhi on October 27.
Synthetic biology allows scientists to modify living cells or organisms so they can perform specific tasks. Researchers can engineer bacteria or yeast to produce particular chemicals, for example. Systems biology studies how different parts of a living organism, including genes, proteins and cells, interact.
India has already begun building infrastructure for this work. The Department of Biotechnology’s BioE3 initiative includes a network of biofoundries, specialised facilities that use automated equipment and biological research methods to design, test and improve microorganisms for manufacturing.
A report published by Nature India in August 2025 described the publicly funded biofoundry at ICGEB in New Delhi, where researchers are working to engineer bacteria and yeast to produce substances such as fuels, cosmetics ingredients and speciality chemicals. The facility uses automation and artificial intelligence to test biological designs more quickly.
The Department of Biotechnology has also reported research projects involving engineered yeast for the production of squalene and linalool at CSIR-CFTRI in Mysuru. These substances have applications in areas such as cosmetics, food and fragrances. The work includes efforts to scale up production, although research and scale-up do not necessarily mean that a product is already being manufactured commercially.
ESTIC 2026: From Laboratory to Products
Developing a biological process is only one stage of making a useful product. Researchers must also establish whether it works reliably, whether production can be scaled up and whether the final product can be manufactured at a competitive cost.
This challenge was highlighted by Dr Rajesh S. Gokhale, Secretary of the Department of Biotechnology (DBT), at the ICGEB meeting. Referring to the discovery and large-scale production of penicillin, he stressed the importance of moving scientific discoveries towards practical applications through research, development and scale-up.
The International Centre for Genetic Engineering and Biotechnology (ICGEB), New Delhi, hosted a curtain-raiser event for ESTIC 2026, highlighting the potential of system and synthetic biology.
Prof. Gobardhan Das, Member of NITI Aayog and the chief guest, cited the development of COVID-19 vaccines as an example of fundamental biological research contributing to public health. Dr Dhananjay Kumar Tiwary, Scientist-H at the DBT and Managing Director of the Biotechnology Industry Research Assistance Council (BIRAC), discussed the potential of system and synthetic biology in healthcare, biomanufacturing and biodesign. He also highlighted the role of artificial intelligence in biological research and the opportunities offered by the BioE3 Policy.
The policy, which stands for Biotechnology for Economy, Environment and Employment, aims to strengthen biotechnology-based manufacturing and support the development of bio-based products. The research and infrastructure being developed under this effort could help expand the range of substances produced using biological processes.
ESTIC Brings Researchers and Industry Together
The ICGEB meeting preceded ESTIC 2026, scheduled for October 27–29 at Bharat Mandapam in New Delhi. Organised by the Council of Scientific and Industrial Research (CSIR), under the guidance of the Office of the Principal Scientific Adviser to the Government of India, the conclave brings together scientists, researchers, policymakers and industry representatives.
Its 12 thematic areas include system and synthetic biology, advanced manufacturing, artificial intelligence, energy technologies, semiconductors and advanced healthcare. The DBT is steering a dedicated session on system and synthetic biology.
For India, a key test will be whether investments in research facilities and engineered biological processes lead to products that can be manufactured reliably and used at scale. The biofoundry programme offers one route towards that goal, though its long-term impact will depend on research outcomes, industrial partnerships and the ability to take promising processes beyond the laboratory.
India–Poland to Pursue Joint Research in AI, Semiconductors and Quantum Technology
India and Poland have agreed to pursue collaborative research in AI, semiconductors and quantum technologies, while identifying battery recycling, rare-earth processing and higher education as areas for closer cooperation.
India and Poland are expanding cooperation in AI research, clean energy, semiconductors and higher education. Representational image. Image credit: Aleksandra Aleshchenko/ Pexels
India and Poland have agreed to pursue collaborative research in artificial intelligence (AI), semiconductors and quantum technologies, while identifying battery recycling and rare-earth mineral refining as potential areas of cooperation. India-Poland commitments were outlined during Polish Prime Minister Donald Tusk’s official visit to India from October 21 to 23, 2026.
The joint statement also calls for stronger partnerships between universities, research institutions, startups and businesses in both countries. While the governments have identified these areas for collaboration, the statement does not announce specific research projects, dedicated funding or participating institutions.
AI, Semiconductors and Quantum Technologies
The two governments agreed to undertake collaborative research in AI, semiconductors and quantum technologies, and to encourage closer cooperation between their research institutions and innovation ecosystems. They also agreed to strengthen startup partnerships.
The statement identifies AI and digital technologies as tools for improving productivity, economic growth and public service delivery. However, it does not specify the research questions the countries intend to pursue, the institutions that will lead the work or a timeline for launching joint projects.
Space technology is another area identified for cooperation. Both sides called for stronger institutional and industry-level engagement to identify specific opportunities. No joint space mission or new space research programme was announced in the statement.
Battery Recycling and Rare-earth Processing
India and Poland identified battery recycling and rare-earth mineral refining as potential areas for cooperation in the circular economy. They also highlighted geology, mining and critical minerals, with a memorandum of understanding on the sector still under negotiation. The focus on battery recycling concerns the recovery of materials from used batteries for possible reuse. Rare-earth processing, meanwhile, is relevant to industries that depend on these materials for components used in electronics and other advanced technologies.
The joint statement does not identify the battery chemistries or minerals to be prioritised, nor does it set recycling targets or announce a joint processing facility. The two countries also called for closer cooperation in clean energy, sustainable technologies and climate-resilient development. They linked greater use of domestically produced clean energy to energy security, climate protection and industrial competitiveness.
India welcomed Poland’s announcement that it would join the Coalition for Disaster Resilient Infrastructure. It also invited Poland to join the International Solar Alliance and the Global Biofuels Alliance. These announcements concern different stages of engagement: Poland announced its intention to join the disaster-resilience coalition, while membership of the two energy alliances was an invitation from India.
Higher Education and Academic Exchange
The joint statement calls for deeper partnerships between Indian and Polish higher education institutions, including student and faculty exchanges and collaborative research. It also notes Poland’s longstanding academic interest in Indology and Sanskrit, the Indian Council for Cultural Relations Chair of Indian Studies at Jagiellonian University in Kraków, and the presence of Polish-language teachers at Indian universities.
An agreement on cooperation in culture, science and higher education is expected to be concluded soon. The statement does not provide details of its proposed provisions or identify universities that will participate in new exchange programmes.
The emphasis on academic partnerships accompanies the proposed research collaboration in AI, semiconductors and quantum technologies. Whether these tracks will be linked through joint university projects or researcher exchanges remains unspecified.
India-Poland What Remains Open
The joint statement sets out different levels of commitment. Collaborative research in AI, semiconductors and quantum technologies is an agreed objective. Battery recycling and rare-earth refining are identified as opportunities, while the memorandum covering geology, mining and critical minerals remains under negotiation. The agreement on culture, science and higher education is also yet to be concluded.
These distinctions matter when assessing what the visit has delivered for science and technology. The governments have identified areas for cooperation, but the statement does not establish project budgets, implementation schedules or measurable research targets.
The immediate outcome is a stated framework for closer engagement across advanced technology, energy and higher education. Further official agreements and project announcements will be needed to establish the scale and practical direction of that cooperation.
AI Models Could Soon Spread Across Smart Devices, Raising Cybersecurity Fears
Anthropic’s experiments highlight how AI self-replication could create new cybersecurity risks, allowing malicious systems to spread across internet-connected devices.
A VPN can encrypt internet traffic, but protecting connected devices against emerging AI-driven cyber threats also requires secure software and regular updates. Representational image. Image credit: Dan Nelson/ Pexels
Artificial intelligence (AI) models could soon spread from one internet-connected device to another, potentially creating networks of compromised devices that carry out cyberattacks with limited human involvement. The warning from AI company Anthropic highlights a possible new challenge for cybersecurity as AI systems become capable of performing increasingly complex tasks.
In experiments, Anthropic found that AI models with 30 billion parameters or fewer could already perform many of the individual tasks needed to copy and spread themselves. However, the models struggled to complete the entire process reliably. The findings point to a potential threat, although they do not establish that fully self-replicating AI networks are already operating in the real world.
How AI could spread through smart devices
Many everyday devices, including smart televisions, security cameras and household appliances, connect to the internet. Internet of Things (IoT) devices present a particular concern because many connect directly to networks while receiving limited security attention from users. Weak passwords, outdated software and unpatched vulnerabilities can leave devices exposed to remote exploitation.
As more devices connect to the internet, security vulnerabilities in everyday technology could provide entry points for AI-assisted cyberattacks and the spread of malicious software. Representational iamge. Image credit: Pixabay
Once compromised, a device can become part of a botnet — a network of devices secretly controlled by attackers. Such networks have long been used to spread harmful software, send spam messages and overwhelm websites with large volumes of unwanted traffic.
AI could make these attacks easier to carry out. A malicious AI system might help identify vulnerable devices, exploit security weaknesses and use compromised devices to reach others. Anthropic’s experiments examined whether an AI agent could combine the computing power of inexpensive, internet-connected devices to run other AI models. If such a process becomes reliable, attackers could potentially use large numbers of ordinary devices to support their operations.
Cybersecurity: Why these networks are difficult to stop
A major concern is that a botnet can operate across thousands of devices in different locations. Shutting down one infected device may not stop the others from continuing to operate.
For example, if a security camera is compromised, its owner may not immediately notice anything unusual. The camera could continue recording while its computing resources are used for activities the owner never authorised. If similar weaknesses exist in other devices, attackers could build a much larger network.
AI-assisted attacks could become harder to manage if systems learn to carry out several steps automatically, reducing the need for attackers to control every action themselves. However, Anthropic’s findings do not show that AI can yet carry out this entire process consistently without assistance.
Securing AI and connected devices
The warning raises questions about how AI developers can prevent their models from being used to exploit computer systems. It also draws attention to the security of the devices people bring into their homes.
Manufacturers can reduce risks by fixing software vulnerabilities, providing regular security updates and strengthening password and access protections. Users can help by changing default passwords, installing updates and replacing devices that no longer receive security support.
AI developers, meanwhile, need to test whether their systems can be misused to automate cyberattacks. The immediate concern is not that every smart device will become a threat. It is that weaknesses already present in internet-connected devices could become easier to exploit as AI gains the ability to perform complex tasks with less human direction.