Ajai Chowdhry, founder of HCL and chairman of the EPIC Foundation, has emphasized the urgent need for India to strengthen its domestic semiconductor production capabilities to meet growing demand and reduce reliance on imports. In a proposal submitted to the central government, Chowdhry outlined key recommendations for transforming India into a global hub for electronic products and semiconductors, urging policymakers to prioritize these measures in the upcoming budget.
Investment in Semiconductor Ecosystem
India is already establishing five semiconductor fabrication plants (fabs) across the country, with additional plants planned for the future. A combined investment of ₹90,000 crore in capital expenditures has been committed by central and state governments to support these initiatives. However, Chowdhry noted that domestic production of chips and systems is essential to create demand for these fabs.
“The fabs will start operating within the next two years, and without domestic chip production, we will remain dependent on exports to sustain these facilities,” Chowdhry stated. He highlighted the need for government support in creating a robust market for locally produced chips and systems.
Proposal for Indian-Trusted Chips
The EPIC Foundation has submitted a list of 30 high-quality chips and 30 priority products that should be developed and manufactured domestically. The foundation also urged the government to mandate the use of “Indian-trusted chips” in government purchases to create a steady demand and support startups in the semiconductor sector.
Chowdhry cited the growing demand for chips and electronic products in India, which are currently dominated by imports. He stressed the importance of leveraging RISCV technology, developed at IIT Madras, to design homegrown chips and eliminate the need for license fees.
Budget Recommendations and WTO Challenges
India’s electronics industry suffered after the WTO ITA-1 agreement in 2005 allowed duty-free imports. To revive the sector, the EPIC Foundation has proposed allocating ₹44,000 crore to the “Product Nation” initiative. Of this, ₹15,000 crore would be for system products. On the other hand, ₹11,000 crore for would be used for semiconductor products, and the rest for incentives and acquisitions.
Chowdhry emphasized that semiconductor products should be prioritized in the budget to achieve self-sufficiency in a rapidly changing geopolitical landscape. “The new unipolar world demands that we strengthen our domestic production capabilities to protect strategic interests,” he said.
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Strategic Importance of Chip Design
Chowdhry also underscored the strategic importance of chip design and India’s large domestic market in becoming a key player in the global semiconductor value chain. “By focusing on designing our own chips using RISCV technology, we can safeguard against future sanctions and enhance our negotiating leverage on the global stage,” he added.
Call for Urgent Action
Chowdhry urged the government to carefully evaluate the EPIC Foundation’s proposals. He called for the allocation of resources to strengthen India’s semiconductor and electronics ecosystem. According to him, it is time for India to move beyond being a trading nation and become a global leader in electronic product manufacturing.
“This is a golden opportunity for India to position itself as a ‘Product Nation.’ We must seize it to ensure our strategic interests are protected and our industry flourishes,” Chowdhry concluded.
