India's semiconductor ambitions must move from ecosystem creation to ecosystem deepening.

Q. India's semiconductor ambitions must move from ecosystem creation to ecosystem deepening. (15 marks, 250 words)

India has laid the foundations of a chip ecosystem through the India Semiconductor Mission, attracting fabs and ATMP units. Yet NITI Aayog's 2026 roadmap warns that foundational capacity alone cannot secure India's place in reshaped global supply chains — the next leap lies in deepening the ecosystem [1].

Ecosystem creation: gains and limits - ISM and the ₹8,000 crore Modified Semicon/Display Ecosystem Programme built foundational fabrication and assembly-packaging (ATMP) capacity [4]. - However, dependence persists on imported equipment, materials and design IP, leaving India low on the value chain and exposed to import-driven trade deficits [1]. - Assembly-heavy models capture limited value; strategic autonomy in chips — vital for national security and digital sovereignty — remains incomplete [1].

Ecosystem deepening: the roadmap's thrust - Design and IP: build full-stack Indian semiconductor IP, targeting 70–75% of domestic chip needs by 2029 [4]. - Advanced production: pursue a "More-than-Moore" path — chiplets, advanced packaging and wide-bandgap materials (SiC, GaN) rather than only cutting-edge nodes [1][4]. - People and R&D: ISM 2.0's ₹1,000 crore for industry-led research and training centres addresses the talent pyramid [3][4]. - Partnerships: position India as "trusted capacity" amid China+1 diversification [1].

Deepening thus targets a USD 120–150 billion value chain by 2035 [4]. Realising it demands seamless coordination across NITI Aayog, MeitY and Finance, sustained long-horizon capital, and critical-mineral security — anchoring Atmanirbhar Bharat while advancing SDG-9 on resilient industry and innovation.

(~250 words)

Sources: 1. NITI Aayog releases "Future of India's Semiconductor Industry" Roadmap (PIB, 2026) — shift from ecosystem creation to deepening; value-chain, security, "More-than-Moore" and partnership focus 2. (reserved) 3. Budget 2026-27 announces launch of India Semiconductor Mission (ISM) 2.0 (PIB) — ISM 2.0 launch and industry-led research/training focus 4. India Semiconductor Mission 2.0 (PIB) — ₹1,000 crore FY allocation, ₹8,000 crore ecosystem outlay, 70–75% by 2029, USD 120–150 billion by 2035, full-stack IP