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India has cleared the first hurdle in chips: a wave of 10 fab/SiC/OSAT investments and policy support that’s taking manufacturing capacity live over 2026–27 (CG Power says 2026; Micron now expected H1 2026 after delays; full fabs only 2027–28 at best). The make-or-break next phase is ecosystem: upstream gases/chemicals/equipment and downstream OEM demand so ATMP/fab lines aren’t reliant on imports or overseas customers.
Today, OSATs still import key inputs like epoxy molding compounds and plating chemicals, hurting cost competitiveness; the fix is to localise materials, anchor OEM production in India, and grow fabless/product companies that actually consume locally made chips. That, not subsidies alone, will decide if the chip mission is a showcase, or a costly experiment.
