Introduction
Semi-conductors are at the core of modern technologies. From smartphones to electric vehicles to AI, and defense, semi-conductors power them all. In 2023, the global semiconductor market was valued at a whopping $527 billion. Fueled by an increasing reliance on high-performance computing, advancements in automation and smart devices the market is expected to nearly double to $1 trillion by 2030.
The sector is dominated mainly by some big players, namely Taiwan, the US, and China. India though a long-term consumer in this sector, has begun to change with government-backed incentives and investment. A growing start-up ecosystem is behind the significant push into semiconductor manufacturing. The country’s ability to transition from an emerging player to a global competitor depends a lot on how it scales up manufacturing and boosts intellectual property-backed innovation and industry partnerships.
The Global Semiconductor Landscape
Every stage of production, right from raw material extraction to chip design and fabrication, testing, and packaging, requires the involvement of many countries. Taiwan leads the chip manufacturing industry, Taiwan Semiconductor Manufacturing Company Limited (TSMC) produces almost 60% of the world's semiconductors and more than 90% of the most sophisticated chips in the world, those that are below 3nm. The United States is the leader in semiconductor design, where industry giants chip market. South Korea is led by Samsung and SK Hynix in memory chip production, while Japan and the European Union focus on semiconductor materials and high-precision equipment. China has aggressively invested in domestic semiconductor production but still finds itself at a disadvantage due to restrictions on acquiring advanced chipmaking technologies, such as EUV lithography machines.
However, it has made notable progress, with SMIC producing 7nm chips despite export controls. Meanwhile, the United States has responded with the CHIPS and Science Act, allocating $52 billion to bolster domestic manufacturing and reduce reliance on foreign supply chains. The European Union, aiming for strategic autonomy, has also introduced the EU Chips Act with a €43 billion investment plan.
India, though a late entrant in the semiconductor race, is taking all steps to get a hold of the semiconductor industry and make its mark as a competitive player. For a long time, India has been a consumer of semiconductors rather than a producer and is now pushing for domestic manufacturing through government and privately backed investment, startup ecosystem, and foreign industrial partnerships. While it still lacks state-of-the-art facilities for advanced fabrication technologies, its focus on chip design, packaging, and fabrication could allow it to establish itself in the global supply chain. The main challenge here would be to balance ambition with execution, offering access to raw materials, attracting human capital, and developing a strong semiconductor ecosystem.
Intellectual Property and Innovation in Semiconductors
Innovation backed by Intellectual property is a crucial driver for the semiconductor industry. Patents, trade secrets, technology transfers and proprietary manufacturing processes help companies gain a competitive advantage in an industry that evolves rapidly through technology. In the US, semiconductor firms re-invest almost 19 per cent of their revenue into research and development, whereas in China, the figure is around 7.6 per cent. Now, the safeguarding of chip designs, fabrication processes and newer materials that include gallium nitride (GaN) and graphene are more crucial for sustaining this innovation.
India semiconductor's intellectual property framework is largely governed by the Semiconductor Integrated Circuits Layout Design Act, 2000. Its impact remains very weak as only three layout design protections have been granted during 2021-22. Unlike the U.S. and China, where semiconductor innovation is largely driven by patents, India's approach has been more focused on design protection. Despite these challenges, semiconductor-related patent filings in India have been steadily increasing. Multinational corporations like Qualcomm, Intel and Samsung are playing a major role in this trend, with Qualcomm alone filing over 1600 patents in India.
Government Initiatives and Investments
Recognizing the strategic importance of semiconductors, India has introduced several initiatives aimed at building a robust domestic industry. The India Semiconductor Mission (ISM), launched in 2022 with an allocation of ₹76,000 crore ($9.13 billion), is a major step toward creating a self-reliant semiconductor ecosystem. The government’s Semicon India Programme provides incentives for semiconductor fabrication plants, chip packaging and testing units, and compound semiconductor manufacturing.
Several major investments have been announced in recent years. The Tata Group is investing $11 billion in a semiconductor fabrication plant in Gujarat, in collaboration with Powerchip Semiconductor Manufacturing Corp (PSMC). Foxconn and HCL are investing $4.24 billion in a semiconductor assembly and testing facility, while Micron Technology has committed $2.75 billion for a memory chip packaging plant. AMD has pledged $400 million toward semiconductor research and design in India.
Despite these efforts, India’s first semiconductor fabrication plant will initially focus on 28nm process nodes, which are more suited for automotive, consumer electronics, and IoT applications rather than the most advanced processors. While this may seem like a limitation, it is a practical starting point given India’s current capabilities and the global demand for legacy chips.
The Growing Semiconductor Startup Ecosystem
India’s semiconductor startup ecosystem has seen a surge in activity, driven by government support and increasing investor confidence. Funding in semiconductor startups jumped from $5 million in 2023 to $28 million in 2024. Companies like Agnit Semiconductors, which specializes in GaN-based chips for telecom and defense, and Aura Semiconductor, which develops mixed-signal integrated circuits for IoT applications, are making significant strides.
Mindgrove Technologies is working on RISC-V-powered system-on-chips (SoCs) and recently raised $8 million, while Blueberry Semiconductors is developing AI-driven Very Large Scale Integration (VLSI) solutions. Morphing Machines is focusing on many-core SoCs for aerospace and communication applications. These startups are playing a crucial role in advancing India’s semiconductor ambitions by driving chip design, AI acceleration, and custom semiconductor solutions.
Union Budget 2025: A Focus on Semiconductors
The Indian government has demonstrated a strong commitment to semiconductors in the Union Budget 2025, increasing funding for key technology projects by 84 per cent to ₹18,000 crores. Semiconductor funding alone has more than doubled to ₹2,499.96 crore, signalling a clear intent to develop a self-sufficient ecosystem.
The government has also secured investment commitments worth ₹1.52 lakh crore for semiconductor projects. While these figures are encouraging, the challenge lies in execution. Compared to the tens of billions of dollars invested by the U.S., China, and Taiwan, India’s investments remain modest. Beyond financial support, India needs to develop mature fabrication facilities, strengthen its semiconductor talent pipeline, and secure reliable access to raw materials.
An increase in funding for compound semiconductors, chip packaging, and testing facilities to ₹3,900 crore is another critical development. Given that packaging and testing require lower capital investment than full-scale fabrication, this is an area where India can make rapid progress. However, without strong industrial linkages and partnerships with global semiconductor giants, there is a risk that these investments may not translate into long-term competitiveness.
Future Outlook and Conclusion
India’s approach to semiconductor self-reliance is pragmatic, starting with 28nm legacy chip production before gradually advancing toward sub-10nm processes. The road ahead will require sustained investments in domestic fabrication, stronger intellectual property protections to encourage innovation, and an expansion of Outsourced Semiconductor Assembly and Test (OSAT), and Assembly, Testing, Marking, and Packaging (ATMP) capabilities to position India as a global player in chip packaging and testing. Research into advanced semiconductor materials, such as graphene-based chips, will also be essential.
Collaboration with leading semiconductor manufacturers like TSMC, Intel, and NVIDIA will be critical for technology transfer and expertise sharing. By 2030, India aims to capture a $150 billion share of the global semiconductor market. The combination of policy support, private-sector participation, and international partnerships will determine whether India can successfully emerge as a formidable force in this highly competitive industry.
The semiconductor sector is not just about technology, it is also a geopolitical battleground. As nations work to secure their supply chains, India’s strategic push into semiconductor manufacturing is a clear signal of its ambitions. The path will not be easy, but with the right investments and strategic decisions, India has a real shot at establishing itself as a major player in the global semiconductor landscape.
IP Round up
Superman Caught up in Copyright Battle:
The estate of Joseph Shuster, co-creator of Superman, has filed a lawsuit against Warner Bros. Discovery and DC Comics in a New York federal court. The suit challenges the studio's right to release the upcoming Superman film in Canada, the UK, Ireland, and Australia, claiming the rights to the character reverted to Shuster’s heirs in 2017 (2021 in Canada) under local copyright laws. Warner Bros. Discovery has strongly disagreed with the lawsuit and plans to defend its position. This legal battle could affect the film's international release, with potential long-term consequences for copyright disputes in the entertainment industry. (Source: Times Entertainment)
Authorship in the Age of AI:
The U.S. Copyright Office's January 2025 report reinforces the principle that only human-authored works qualify for copyright protection. It specifies that outputs generated solely by AI, without human input, are not eligible for copyright. The report identifies three key scenarios where human authorship can be evaluated: using AI as a creative aid, integrating human-generated elements, and making creative adjustments to AI-produced content. While detailed text prompts may guide the AI, they do not provide sufficient human control to establish authorship. The report compares this to Jackson Pollock's works, which, despite their unpredictability, resulted from deliberate human decisions. Although AI-generated components may not qualify for protection, works involving significant human creativity can still be copyrighted. The Office advises a case-by-case approach and warns against granting broad copyright to AI outputs, emphasizing the importance of human creativity. (National Law Review)
Delhi HC Cancels Rs 1,891 Crore Award Against NTPC:
The Delhi High Court recently set aside an arbitral award directing NTPC Ltd. to pay Rs 1,891 crore to Jindal Infralogistics Ltd. in a dispute stemming from a 2011 tripartite agreement for coal transportation to NTPC’s Farakka power plant. Jindal ITF had claimed that delays in the construction of infrastructure were caused by NTPC, leading to the termination of the agreement and the initiation of arbitration. In 2019, the arbitral tribunal awarded Rs 1,891 crore for wrongful termination. However, the Delhi High Court found the award to be based on patent illegality and noted that the tribunal failed to provide adequate justification for the damages. The court also criticized the tribunal for exceeding the contract terms and lacking due care in conducting the proceedings. Jindal ITF intends to appeal the decision. (Source: NDTV)
AstraZeneca Battles Generic Makers:
AstraZeneca has filed new lawsuits against four generic drug manufacturers—Sandoz, Cipla, Natco Pharma, and Zydus Pharmaceuticals—over its cancer drug Lynparza (olaparib). The lawsuits, filed in January 2025, claim that these companies intend to produce generic versions of Lynparza, infringing on a newly issued patent covering the drug’s active ingredient, olaparib. This follows years of litigation, including a 2023 suit against Natco Pharma over existing patents, with some patents expiring in 2027. In the most recent complaints, AstraZeneca alleges the generic drugmakers plan to proceed despite knowledge of the new patent. AstraZeneca seeks an injunction to prevent the manufacturing, use, and sale of the generics. In response, several generics have countersued, claiming AstraZeneca’s patents are invalid due to double patenting or other legal issues. The ongoing legal battles highlight the high costs and challenges in drug patent disputes. (Medscape)
A Glimpse into Future Tech:
OpenAI has filed a trademark application with the U.S. Patent and Trademark Office (USPTO), hinting at potential new product lines, including hardware and robots. The filing lists items like AI-assisted smartwatches, glasses, virtual reality headsets, and user-programmable humanoid robots designed for communication and entertainment. OpenAI is also exploring custom AI chips and quantum computing resources to optimise AI performance. The company, which has been working with former Apple designer Jony Ive on hardware, plans to develop AI-powered consumer devices through partnerships. While OpenAI has made strides in robotics, such as hiring Caitlin Kalinowski to lead its hardware team, Altman cautioned that AI devices are still years away from prototypes. The filing signals OpenAI's potential future ventures but offers little clarity on when or if these products will come to market. (Source: TechCrunch)
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