India’s semiconductor ambitions hinge on nurturing hundreds of domestic chip companies to cover the broad spectrum of the global market, according to Sandeep Kumar, CEO of L&T Semiconductor Technologies (LTSCT). Speaking at Semicon India 2026, Kumar outlined the country’s current strengths and gaps in chip design and manufacturing, highlighting ecosystem diversity as critical for global competitiveness.
- India needs hundreds of chip firms to cover varied semiconductor market segments
- L&T Semicon unveiled new silicon carbide and AI-accelerated chip products
- Indian government and industry emphasize ecosystem development and strong incentives
What happened
At Semicon India 2026, Sandeep Kumar, CEO of L&T Semiconductor Technologies, highlighted the necessity for India to cultivate hundreds of semiconductor companies to establish a globally competitive chip ecosystem. He emphasized that no single company can address the diverse demands of the global semiconductor market alone, advocating for broad-based ecosystem growth rather than concentration in a few firms.
During the event, L&T Semicon introduced 40 new semiconductor products, including a 1,200V silicon carbide (SiC) MOSFET platform targeting applications such as EV fast chargers and microgrids, as well as an India-designed BLDC motor controller for energy-efficient fans. The product portfolio also features vision camera SoCs with AI acceleration, secure identity platforms, and connectivity modules for automotive and digital payment applications.
Why it matters
India’s semiconductor ecosystem currently possesses strengths in digital compute technologies, analog and mixed-signal design, and radio frequency technologies, but gaps remain in system architecture, high-power semiconductors, memory, optics, and manufacturing. System architecture, involving customer-centric product design, is a notably larger gap due to limited exposure of Indian engineers to global end customers.
The government’s Semicon 2.0 initiative signals renewed focus on ecosystem gaps including advanced packaging, R&D, and manufacturing talent. With commitments such as Applied Materials’ $5 billion investment and new conditions for subsidy recipients, India is reinforcing incentives aimed at sustainable domestic semiconductor capabilities. Strategic partnerships like Tata Electronics’ deal with Nexperia illustrate how localized manufacturing and assembly play a role in India’s ecosystem expansion.
What to watch next
Key indicators to monitor include how India's semiconductor ecosystem expands with the entry of multiple domestic chip companies addressing various segments to compete globally. The development of a broader base of system architecture capabilities will be crucial for transforming India’s semiconductor design prowess into market-ready products.
Government policy enforcement, such as the incentive conditions for Semicon 2.0 beneficiaries, and execution of announced investments will shape the pace and quality of semiconductor production growth. The evolution of partnerships with global players like Nexperia could establish critical manufacturing footholds, helping India integrate deeper into the global value chain and reduce dependency on any single region.