India is accelerating its push into the global semiconductor supply chain by focusing on outsourced semiconductor assembly and test (OSAT) facilities, with industry investments now totaling ₹64,000 crore ($7.7 billion).
This strategic pivot emphasizes the back-end of chip manufacturing as the most viable entry point for the country, balancing speed to market with manageable capital expenditure compared to front-end fabrication plants.
The decision to prioritize OSAT reflects a pragmatic approach to building a competitive ecosystem.
Industry experts argue that assembly and testing require significantly lower upfront investment and offer faster execution timelines than building advanced foundries.
This allows India to integrate into global supply chains more rapidly, capturing value in the packaging and testing segments while laying the groundwork for more complex manufacturing capabilities in the future.
This development aligns with the broader India Semiconductor Mission (ISM), which has already seen significant government backing.