Endiya Partners Report: India’s Semiconductor Ambitions Hindered by Manufacturing Gaps Despite Design Strength

As India’s semiconductor ambitions continue to expand, a new report has identified significant gaps within the country’s ecosystem, warning that design-led growth alone will not translate into large-scale manufacturing capacity.

The report, “India’s Semiconductor Moment: Perspectives from DEMO,” published by Endiya Partners, an early-stage deep tech venture capital firm, highlights several execution challenges — including the lack of operational advanced-node fabrication facilities, a nascent Outsourced Semiconductor Assembly and Test (OSAT) infrastructure, and a projected shortage of 10,000–13,000 fabrication professionals by 2027.

Although India accounts for 20% of the global semiconductor design workforce — roughly 150,000 professionals — it contributes only 0.5% to global fabrication capacity, underscoring a significant disconnect between the nation’s design expertise and its manufacturing execution, the report said.

However, investor sentiment remains positive, with 92% expressing optimism about India’s semiconductor prospects and 63% indicating a willingness to invest in intellectual property (IP)-focused chip ventures with long gestation periods — particularly those developing application-specific solutions, the report noted.

The study identifies seven priority clusters where India holds potential for global competitiveness: EDA and IP development, analogue/mixed-signal and RF solutions, power semiconductors, advanced packaging and chiplets, test and metrology tools, and trusted supply chains across sectors such as automotive, telecommunications, and defence.

The report also emphasises that India’s strong domestic demand can serve as a foundation to support near-term capacity building while simultaneously enhancing the country’s export credibility in the global semiconductor value chain.