India's Semiconductor Shift: From Vision to Execution in 2025

• India's semiconductor sector transitioned in 2025 from ambitious proclamations to a practical, execution-focused strategy, addressing ground realities.
• The strategy expanded beyond expensive fabs to include faster, lower-capital backend activities like OSAT and ATMP, recognizing a broader value chain.
• Despite ₹62,900 crore government funding, execution faces structural challenges like land, water, power, and logistics.
• Strong electronics manufacturing ($115-120 billion in 2025) provides crucial domestic demand, forming a stable base for semiconductor growth.
• India's design strength (20% global workforce) needs integration with local manufacturing and packaging to unlock full economic value.

Why It Matters: India's semiconductor journey in 2025 marked a crucial shift towards practical execution and a diversified strategy.