Project Summary

The purpose of the proposed project is to evaluate India’s preparedness to build competitiveness in its semiconductor manufacturing ecosystem, with a particular focus on integration to the semiconductor global value chain in an emerging bloc economy among Quad (Quadrilateral Security Dialogue) plus, serving the economic security of the Indo.Pacific region.

Securing the stable semiconductor supply is one of the immediate and key agenda items for Quad plus. India is expected to play a key role as a core member of Quad. At the same time, India is seizing an opportunity to achieve the domestic goal of ‘Self-reliance’ for its economic growth and development. As a new entrant, India has set up Semiconductor Mission (ISM), and recently signed a memorandum with the United States and Japan to build a semiconductor supply ecosystem, and has signed the Critical Minerals Investment Partnership with Australia to secure access to raw materials.

Yet a question remains whether India will have capacity to successfully develop a semiconductor industry and to serve the needs of the Quad. This is because of; 1) a lack of semiconductor industry base (the country being deindustrialised) and an overall manufacturing ecosystem including infrastructure, technological development, and patent protections, which are also essential measures for economic security, and 2) its lower level of integration into the global supply chain. The recent fallout of the Vedanta.Foxconn Joint Venture deal also adds to the challenge. The project, therefore, aims to analyze the feasibility of fast-moving development around semiconductor industry by identifying the gaps, bottlenecks and challenges within India (also at the State levels) and in coordination with Quad.

Triangulation will be applied to analyze and assess the historical and current state of industrial development, supply chain integration, and policies and implementations in India, in the context of coordination among Quad members. The lessons will also be drawn from comparative (also of China) analysis. Interviews will be conducted abroad with key stakeholders including policymakers, industry, and academia. Quantitative analysis (exploratory and statistical analyses) will supplement the analysis, where applicable, for comparative purposes.

The future research involves evaluating outcomes of the ongoing Quad coordination as well as India’s semiconductor industry development including the degree of economic and industrial shift from China and supply stability, and country-specific in-depth analysis for the Quad plus members.