From extreme ultraviolet lithography to the economics of fabrication, semiconductors sit at the intersection of advanced science and industrial complexity. Neelkanth Mishra unpacks where India stands today, the constraints it faces, and the strategic choices that will define its place in the global chip ecosystem. Image: Dipin Damodharan/EdPublica
As India pushes ahead with its semiconductor ambitions under the India Semiconductor Mission (ISM), questions remain about where the country can realistically compete and how long it will take to build a viable ecosystem. In this exclusive conversation with Education Publica Editor Dipin Damodharan in Mumbai, Neelkanth Mishra, Chief Economist at Axis Bank and Head of Global Research at Axis Capital, draws on two decades of experience tracking the global semiconductor industry to explain India’s advantages, constraints, and long term trajectory. He is also a member of the advisory committee of the government’s India Semiconductor Mission and part-time Chairperson of the Unique Identification Authority of India (UIDAI). Edited excerpts.
Photo by Christian Wiediger/Unsplash
How the India Semiconductor Mission Is Shaping the Industry
Let me start with asking something out of curiosity – how did you get interested in semiconductors in the first place?
When I joined Credit Suisse First Boston in 2003 in Singapore, the person who hired me was heading Asia technology research and was also the lead analyst for semiconductor foundries such as TSMC and UMC. I was hired to cover IT services, but he wanted help in building the semiconductor research franchise.
That led me to start reading about how chips are made. At that time, the industry was transitioning from 130-nanometer to 90-nanometer nodes, and copper was being introduced to replace aluminum due to resistance issues. There were challenges around yields because copper was seeping into substrates. I remember writing my first note around this issue after going through technical papers.
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That note became quite popular, and it gave me the confidence to continue covering semiconductors. I spent a lot of time travelling to Taiwan, studying DRAM cycles, capex cycles, node transitions, and the broader global semiconductor ecosystem. Eventually, I moved to Taipei and began covering chip design companies such as MediaTek.
At that time, were you also tracking what was happening in India?
India has had chip design activity for a long time, even in the 1990s. Companies like Texas Instruments, Cadence, and Synopsys were recruiting from Indian campuses. Many engineers built long careers in these firms.
However, India did not have domestic chip manufacturing or strong Indian-owned chip design companies. By the mid-2000s, global firms such as Nvidia, Broadcom, and Intel began setting up design centres in India. So the design ecosystem was growing, but it was largely driven by global companies.
It is only in the last four to five years that more serious efforts have begun toward building Indian-owned capabilities.
So what changed in the last few years? Was it policy, or something else?
Policy has played a role. The Design Linked Incentive (DLI) scheme has been an important catalyst. We are seeing some early success. At the same time, there is also an evolutionary factor at play. Engineers who moved abroad 20–25 years ago are now at a stage where they have both the experience and financial capacity to take entrepreneurial risks. Many also want to return to India.
Another important factor is the growth of India’s electronics manufacturing ecosystem. As assembly volumes increase, there is greater awareness of what products need to be designed. Without that visibility into OEM pipelines, it is difficult to design chips.
Schemes like PLI for electronics manufacturing have helped build that awareness and ecosystem. As downstream industries grow, upstream opportunities in chip design also become clearer.
As US is good at designing chips, Taiwan and South Korea are good at manufacturing There’s always this question – should India focus on design, manufacturing, or packaging?
There is no either/or. India needs to participate across the value chain.
We already have a natural advantage in chip design, with about 20% of global design engineers based in India. Design is also less capital-intensive compared to manufacturing. In a $10 chip, $5–6 of value is captured by the designer, and in some cases even more.
At the same time, semiconductor manufacturing is a geopolitical necessity. It is not just a commercial issue but also a matter of national security. That is why governments provide significant subsidies for fabs.
However, manufacturing is a low-return business globally. Only a few companies like TSMC and Samsung have consistently generated returns above their cost of capital. Much of the value in the ecosystem is captured by design firms and by capital equipment suppliers, which operate in highly concentrated markets.
Therefore, India must build capabilities across the chain—from design to manufacturing to equipment and materials—if it wants meaningful value capture.
When we talk about building an ecosystem, how complex is that in reality?
It is extremely complex. The industry has multiple layers of specialization. For example, electronic design automation (EDA) tools are dominated by a few companies. Lithography, especially extreme ultraviolet, is controlled by a single company globally. Equipment for deposition, wafer slicing, and testing is also concentrated among a handful of firms.
Even the chemicals used in wafer cleaning are highly sophisticated and require extraordinary purity. A single wafer can take months to manufacture, involving hundreds of process steps.
So when we talk about semiconductors, it is not just about fabs. It is about building an entire ecosystem—equipment, materials, design, testing, and packaging. This is why it is a 15–20 year journey at least.
What about talent? Are we ready from a skills perspective?
In general, skilling in India is more of a demand problem than a supply problem. If there is sufficient demand, the industry tends to create the supply.
For example, there is already discussion about developing tens of thousands of chip testing engineers in India, and that is achievable. However, for cutting-edge technologies, there is a need for deeper investment in research.
As we move toward more advanced nodes—such as 7 to 12 nanometers—we will require significant high-end research capabilities. Countries like China took over 25 years to reach that level.
We need to invest not just in near-commercial research (TRL 6–9) but also in fundamental research (TRL 1–4), which creates long-term intellectual property. Government initiatives like the Anusandhan National Research Fund are steps in that direction, but overall R&D spending needs to increase.
What role should industry play in R&D?
Industry participation is essential. The government can catalyse investment, but companies will invest when they see potential returns.
We have seen this in pharmaceuticals, where Indian firms moved into R&D after reaching limits in generics. A similar shift can happen in semiconductors, but it will require scale, capital, and long-term commitment.
Where do startups fit into this picture?
Startups will have a significant role, particularly in chip design. Manufacturing is extremely capital-intensive, requiring billions of dollars in investment, which limits the role of startups.
However, in design and innovation, startups can play an important part. Many innovations in the semiconductor ecosystem originate from smaller firms, which are later acquired or integrated into larger companies.
To produce a globally competitive company, you need a large ecosystem of startups, experimentation, and risk-taking.
Coming to policy – what did India learn from ISM 1.0?
ISM 1.0 (India Semiconductor Mission) was a learning curve for everyone. It helped the government understand how to evaluate proposals, support companies, and manage operational challenges.
There were practical issues—from customs procedures affecting sensitive equipment to ensuring uninterrupted power supply. Semiconductor manufacturing requires extremely high reliability, and even a brief power outage can cause significant losses.
Another important learning is that the global industry is now more comfortable working with India. While India may not yet be the first choice, confidence has improved due to visible commitment and progress.
This increased comfort allows India to be more ambitious with ISM 2.0.
Photo by Laurel and Michael Evans/Unsplash
How important is policy stability?
Policy continuity is very important because these are long-term projects. Global firms value consistency in decision-making and relationships.
There is also a growing effort to ensure continuity in leadership within government institutions, which helps build expertise and trust over time.
Do we need a dedicated semiconductor research institution like IMEC?
There are existing efforts, such as the facility in Mohali, which supports defence-related applications. There are also discussions around creating IMEC-like research centres.
However, over time, the private sector will need to take a larger role in research. Government support is critical in the early stages, but for sustained innovation and competitiveness, industry-led initiatives are more effective. The government can act as the binding force or the catalyst that brings people to the table; however, I believe it is ultimately better if the private sector takes the lead. This creates a natural incentive for innovation and rigorous research. Beyond a certain point, government support becomes both fiscally unfeasible and operationally undesirable
If we look ahead 20 years, where do you see India?
On the design side, India can become much more significant. It is possible to see 10–15 large chip design companies and many smaller firms emerging.
On the manufacturing side, we could have several large fabs and potentially global players establishing operations in India, especially if a strong domestic design ecosystem develops.
For example, companies like TSMC tend to follow innovation ecosystems. If Indian design firms grow in scale and sophistication, it could attract global manufacturing investments.
Let me end with this – can India produce a company like Nvidia?
It is possible, but it requires a large ecosystem. Many Indians already occupy senior roles in global semiconductor companies and are involved in cutting-edge design work.
To create a company of that scale, you need risk capital, entrepreneurial ambition, and a large number of startups. In other markets, hundreds of firms compete, and one eventually emerges as a dominant player.
So it is not about a single effort—it is about building an ecosystem where many experiments take place, and success emerges from that.
Dipin Damodharan is an award-winning journalist, editor and media entrepreneur, and Co-founder and Editor-in-Chief of EdPublica, an independent global media platform covering education, science, research, innovation, climate and public policy. With more than a decade of experience in journalism, he has worked across print, digital and multimedia media. His reporting explores science, climate, sustainability and the social impact of research and innovation. His work has been recognised by the Solutions Journalism Network and other journalism organisations.
Physicists Extend Einstein’s Theory to Investigate the Universe’s Earliest Matter
Physicists at MIT and UCSB have extended Einstein’s theory of Brownian motion to study how heavy quarks move through quark-gluon plasma, offering new insights into the universe’s earliest matter.
Particle collision events help physicists investigate the properties of quark-gluon plasma, the extreme state of matter that existed shortly after the Big Bang. Image credit: MIT
For a few microseconds after the Big Bang, the universe was filled with an unusual state of matter. At temperatures reaching trillions of degrees, quarks and gluons moved freely in a dense, hot fluid known as quark-gluon plasma. As the universe expanded and cooled, these particles began combining to form protons and neutrons, the building blocks of ordinary matter.
Physicists can recreate this extreme environment today by colliding heavy atomic nuclei at nearly the speed of light inside particle accelerators. The collisions produce tiny droplets of quark-gluon plasma, each lasting only an extraordinarily brief period before breaking apart. Studying what happens inside these droplets is difficult. They are too small and short-lived for scientists to examine directly. Instead, researchers look at how other particles behave as they pass through the plasma. Their movements can reveal details about the fluid’s internal properties.
A study by physicists at the Massachusetts Institute of Technology (MIT) and the University of California, Santa Barbara (UCSB), has developed a new theoretical approach to this problem. Published in Physical Review Letters, the research examines how heavy subatomic particles respond to the forces exerted by a fluid when travelling at speeds close to that of light. The work extends a principle that physicists have relied on for more than a century: Albert Einstein’s explanation of Brownian motion.
The Problem with Einstein’s Explanation
In 1827, botanist Robert Brown noticed that pollen grains suspended in water moved continuously, even when the water appeared undisturbed. The movement was random, with the particles changing direction as though they were being pushed by invisible forces. Einstein explained this phenomenon in a 1905 paper. He showed that the apparently random movement resulted from collisions with the atoms and molecules in the surrounding fluid. These microscopic particles constantly strike a larger suspended particle, producing small, unpredictable changes in its motion.
Two effects determine how the particle moves. The fluid exerts drag, slowing it down, while microscopic collisions keep pushing it in different directions. The relationship between these forces can reveal information about the fluid’s temperature and microscopic composition. Scientists later applied this framework to a range of fluids, including quark-gluon plasma. However, the original theory was developed for particles moving at relatively low speeds. Heavy quarks travelling through an extremely hot plasma can move close to the speed of light, where the familiar relationship between drag and random fluctuations becomes inadequate.
Physicists have been aware of this limitation for about 20 years. MIT graduate researcher Jean Du Plessis and Bruno Scheihing-Hitschfeld of UCSB have now worked out a framework that accounts for the unusual behaviour of particles under these conditions.
When a Particle Receives an Unusually Large Kick
The researchers calculated the forces a heavy quark would experience while travelling through a fluid at relativistic speeds. They began with a simplified model in which the particle moved through a gas of weakly interacting quarks and gluons. This made it possible to calculate how the strong nuclear force would affect its momentum.
The team then examined the probability of different changes in the quark’s momentum. In the conventional Brownian motion model, small changes are common, while extremely large ones are rare. The resulting probability distribution takes the shape of a bell curve, with the most extreme movements appearing at its two ends. The calculations for relativistic heavy quarks produced a different pattern.
For smaller changes in momentum, the distribution still resembled a bell curve. At the outer ends, however, it became uneven. Large changes occurred more frequently than the conventional model would predict. A particularly interesting finding was that a large kick slowing the quark down was more likely than an equally large kick pushing it in the opposite direction.
This imbalance is important because it suggests that the movement of heavy quarks carries information that conventional Brownian motion models miss. “How often those large changes occur depends on the microscopic nature of the plasma,” Du Plessis said. Such events could therefore offer researchers another way to investigate what happens inside quark-gluon plasma. The researchers repeated their calculations for plasmas made up of different particles. They found that the same tilted probability distribution appeared across these different conditions. They also identified the mathematical pattern in an earlier calculation involving a strongly interacting plasma, despite the differences in the underlying microscopic physics. The finding points to a potentially universal feature of how relativistic particles interact with fluids.
Reading the Properties of the Early Universe
Quark-gluon plasma is known to behave more like a liquid than an ordinary gas. Experiments have shown that it flows with remarkably little internal resistance, suggesting that its constituent quarks and gluons interact strongly.
The new framework could help physicists investigate these interactions by examining how heavy quarks lose momentum as they travel through the plasma. Researchers can compare the theoretical predictions with measurements from particle accelerator experiments and use the differences to refine their understanding of the fluid. Du Plessis believes the primordial quark-gluon plasma was more strongly interacting than a simple Brownian motion model might suggest. Its behaviour, he says, was closer to that of a liquid than a gas.
The calculations do not directly tell scientists what the universe’s first fluid looked like. They offer a more precise way to interpret the behaviour of particles produced in laboratory collisions, bringing researchers closer to understanding the properties of matter during the universe’s earliest moments. The research received support from the US Department of Energy’s Office of Nuclear Physics, the US National Science Foundation and the Simons Foundation.
Indian-Belgian Team Develops Portable Detectors to Image Mountains and Monuments Using Cosmic Rays
Portable cosmic-ray detectors could help researchers examine mountains, tunnels and historical monuments without invasive procedures, opening new possibilities for scientific imaging and infrastructure inspection.
A particle detector displays tracks produced by cosmic rays, illustrating how scientists study high-energy particles for non-invasive imaging applications.Image credit:Pexels
An international team of researchers from India and Belgium has developed portable particle detectors that could help scientists examine the interiors of mountains, tunnels and historical monuments without damaging them. The technology uses naturally occurring cosmic-ray particles to map variations in the density of objects, offering a potential approach to non-invasive imaging of large structures.
The detectors, developed using glass-based Resistive Plate Chambers (RPCs), achieved a particle-detection efficiency exceeding 95% during testing, according to a report published by Research Matters on October 24, 2026. The findings demonstrate the potential of compact detector systems to investigate dense materials and support future applications in geology, archaeology and infrastructure assessment.
The collaboration includes researchers from India’s National Institute of Science Education and Research (NISER), Bhubaneswar, and the Homi Bhabha National Institute (HBNI), alongside researchers from Belgian institutions, including Université catholique de Louvain and the Inter-University Institute for High Energies.
How cosmic rays reveal hidden structures
The technology uses muons, high-energy particles produced when cosmic rays interact with Earth’s atmosphere. These particles continuously reach the Earth’s surface and can penetrate substantial thicknesses of rock, concrete and other materials.
As muons travel through an object, some are absorbed or deflected depending on its density and thickness. By measuring the number and trajectories of particles passing through a structure, researchers can identify variations in internal density and reconstruct images of otherwise inaccessible areas.
The technique, known as muography, is comparable in principle to X-ray imaging, but uses naturally occurring particles instead of an artificial radiation source. It has previously been used to investigate geological formations, including volcanoes, and to explore archaeological structures.
However, conventional muon detectors can be bulky, difficult to transport and challenging to operate in remote locations. The new glass-based detectors aim to address some of these limitations through a compact design and sealed operation, reducing dependence on continuous gas supplies.
Testing the detector system
The researchers developed three glass RPC prototypes using thin glass electrodes separated by gas-filled gaps. When a muon passes through a chamber, it ionises the gas, generating an electrical signal that can be recorded to determine the particle’s position.
Electronic readout systems capture these signals and help reconstruct the trajectories of incoming particles. During testing, the detectors achieved an efficiency exceeding 95%, with a timing resolution of approximately 1.8 nanoseconds, according to the research report.
To examine the system’s ability to detect dense materials, the team conducted an absorption experiment using one prototype. During an open-sky measurement, researchers recorded nearly 55,000 muon tracks. After placing a lead block in the experimental setup, the recorded count fell to 30,894, demonstrating how dense material reduced the number of particles reaching the detector.
Representational image.Image credit:Pexels
The experiment provided proof of principle that the system could measure muon attenuation and support radiographic imaging. However, imaging complex structures such as mountains or monuments requires measurements from multiple directions and further computational reconstruction.
Applications and challenges ahead
Portable muon detectors could eventually help researchers investigate hidden cavities, examine geological formations, inspect tunnels and study the internal structures of historical monuments. Engineers could also explore their application in assessing infrastructure such as dams and bridges, although these uses would require additional testing and validation.
For cultural heritage conservation, muography could offer a valuable alternative where drilling or other invasive investigations risk damaging fragile structures. A 2025 review published in iScience highlighted the technique’s potential as a complementary, non-destructive method for studying cultural heritage objects, while noting that the relatively low flux of naturally occurring muons can require lengthy data-collection periods.
The technology is not yet a universal replacement for existing inspection methods. Its practical application will depend on factors such as spatial resolution, detector size, measurement duration and the complexity of the structure being examined.
The researchers have proposed further improvements, including lighter structural materials, larger detector areas and enhanced readout systems. These developments could make the detectors easier to deploy and improve the quality of reconstructed images.
How Scientists Traced the Flow of Matter Around a Dead Star Using X-rays
By studying changes in X-ray signals from Centaurus X-3, researchers at Bengaluru’s Raman Research Institute have found evidence of an unusual way in which matter reaches a neutron star. The discovery could change how scientists explain the radiation coming from this distant system.
An artistic impression of the high-mass X-ray binary system Centaurus X-3. Not to scale.
When a massive star dies, its core can collapse into an extremely dense object called a neutron star. Despite being only about the size of a city, it can have a mass comparable to that of the Sun. Its powerful gravity can pull matter away from a nearby companion star, releasing energy in the form of X-rays as the material falls towards it.
Scientists at Bengaluru’s Raman Research Institute (RRI) have studied these X-ray signals from Centaurus X-3, a star system about 24,000 light-years from Earth. By examining changes in the signals, the researchers identified a stream of matter flowing towards the neutron star and found evidence of a rotating disk of material around it. This is an unusual finding because such disks are not commonly expected in this type of star system. The discovery could help scientists better understand how matter moves around neutron stars and how these distant objects produce X-rays.
Star That Pulls in Matter
Centaurus X-3 is in the constellation Centaurus. It belongs to a class of systems known as high-mass X-ray binaries. These systems contain a neutron star and a massive companion star held together by gravity.
A neutron star forms when the core of a massive star collapses at the end of its life. It packs roughly the Sun’s mass into a sphere only about the size of a city. Its gravity is so strong that it can pull in material from a nearby companion star. As this material falls towards the neutron star, it releases enormous amounts of energy, including X-rays. Scientists study this radiation to understand how the material behaves and how the system works.
Centaurus X-3 is also a pulsar. Its neutron star rotates and sends out radiation from regions near its magnetic poles. As the star spins, these beams sweep across space. When a beam passes an observing satellite, the satellite detects a pulse of radiation, much as a lighthouse produces a repeating flash as it turns. These regular pulses provide scientists with a way to study the neutron star and its surroundings.
What the Changing Signals Revealed
The radiation from Centaurus X-3 does not come only from the neutron star itself. Some of it interacts with nearby material, including the surface of the companion star, gas flowing away from it and matter surrounding the neutron star. This material absorbs radiation and emits it again. Scientists call this secondary radiation.
The accretion stream falling onto the neutron star along its magnetic field lines.
Changes in this radiation can help researchers work out what is happening around the neutron star. However, Centaurus X-3 is so far away that telescopes cannot clearly distinguish its surrounding structures. It appears as a single point of light. Scientists must therefore piece together the system’s structure from the signals they receive.
Earlier observations had shown that the intensity of certain secondary X-ray emission lines changed as the neutron star rotated. An emission line is a feature in a spectrum that can reveal information about the material producing or interacting with the radiation. A research team led by Kinjal Roy of RRI examined four such emission lines in detail. The researchers found that the structure producing these changes must be rotating along with the neutron star.
The pattern helped them identify the likely source which is a stream of matter moving towards the neutron star.
Following the stream of matter
This stream is part of a process called accretion, in which a compact object draws in material from its surroundings. In Centaurus X-3, the stream carries matter from an accretion disk towards the neutron star. The disk is a rotating structure of gas and other material that moves around the star before being drawn inwards. The neutron star’s magnetic field then guides the incoming matter towards its magnetic poles.
The stream also changes what an observing satellite sees. As it moves around the neutron star, it can come between the satellite and the star, partially blocking the direct radiation. When this happens, the primary X-ray signal weakens. At the same time, radiation from the stream itself becomes stronger in the observed signal.
The researchers used these changing signals to connect the observed variations to the movement of matter around the neutron star. The evidence for an accretion stream also points to an accretion disk feeding it. This matters because scientists generally expect high-mass X-ray binaries to gather material in a different way.
Why an accretion disk matters
In many high-mass X-ray binaries, a neutron star captures gas directly from the stream of material blown away by its companion star. This is known as stellar-wind accretion. An accretion disk involves a different arrangement: material gathers into a rotating structure before flowing towards the neutron star. The findings from Centaurus X-3 indicate that this disk-based process is taking place in a system where it is not generally expected.
That difference matters when scientists calculate how the system produces and releases radiation. If their models leave out the disk, they may fail to account for some of the radiation coming from the surrounding material.
“Accretion disk is not expected to occur in [HMXBs] So, if an accretion disk is forming in this system, emission models have to be modified,” Roy said in the Department of Science and Technology’s announcement. He added that future models of Centaurus X-3 would need to account for radiation from the disk.
The research does not mean that scientists have directly photographed the disk. Instead, they have used the changing X-ray signals to infer the presence and behaviour of structures that remain too distant to resolve clearly. Published in The Astrophysical Journal, the study adds to the understanding of Centaurus X-3, one of the most widely studied binary pulsars. It also shows how small changes in radiation can reveal the movement of matter around objects that are otherwise beyond the reach of direct observation.
By identifying the flow responsible for the changing signals, the researchers have provided a more detailed picture of how this neutron star draws in material. That picture will help scientists refine their models of Centaurus X-3 and examine whether similar processes occur in other high-mass X-ray binaries.