At the fourth Semicon India conference in New Delhi this September, Prime Minister Narendra Modi urged Indian firms to secure global chip patents and establish a strong presence in the global semiconductor value chain emphasizing the need for indigenous intellectual property. PM Modi further highlighted the country’s transition from being just a consumer to an emerging global hub for chip design, assembly, and manufacturing, with the government’s policy focus now pivoting towards deeper R&D, patent generation, and strategic industry partnerships.
India’s expanding focus on cultivating its semiconductor capability is connected to the collective global realization of diversifying the semiconductor industry to avoid any setback posed by geopolitical shifts or uncalculated risks.
Global Chip Industry and Diversification
Attuned to its global significance and potential as a political weapon, the semiconductor sector has earned ‘the new oil’ moniker. Semiconductors are essential components that underpin virtually every modern industry, from robotics to factory automation to electric vehicles.
Estimates from sources like PwC, Lloyd's, and Yole Group predict that the global semiconductor market could reach or exceed $1 trillion in revenue by 2030. Semiconductor manufacturing and design are emerging as tools of "semiconductor diplomacy" to project power and influence in the 21st century.
The global supply chain shortages that began around 2020 revealed dependencies on a concentrated, global manufacturing network. US companies like Broadcom and Intel Corporation lead in chip design and intellectual property but hold a significantly smaller share of global chip manufacturing, which is concentrated in East Asia led by Taiwan's TSMC and South Korea's Samsung, with Taiwan alone producing a significant majority of the world's advanced semiconductors.
China aspires to significantly grow semiconductor manufacturing capacity over the next decade. Meanwhile, US-China tech rivalry in semiconductors is at the center of national security and economic dominance. The US through export control mechanisms has been instrumental in hindering China's advancement in AI and military capabilities, while China seeks to create an independent chip supply chain. The US passed the CHIPS and Science Act to boost domestic production and foster alliances with countries like South Korea and Taiwan. China is investing heavily in its domestic industry, potentially accelerating its growth and challenging US leadership.
Countries are increasingly seeking partnerships to bring together key players in this ecosystem – for example the US has proposed a ‘Chip 4’ alliance with South Korea, Japan and Taiwan. Bringing together countries with comparative advantages can strengthen supply chains, but no doubt there are also political allegiances at play.
As geopolitical tensions have heightened, countries want to shore up their supply chains against potential logistical disruption. Countries like the US, European Union, China, South Korea, Japan, and India are investing in the domestic semiconductor sector. Governments are increasingly pursuing proactive industrial policies providing subsidies and incentives, to onshore or "friend-shore" semiconductor manufacturing, reduce supply chain risks, and foster innovation.
Is India ‘Chip’ing Yet?
India's semiconductor sector is undergoing rapid transformation, driven by government initiatives like the India Semiconductor Mission (ISM) and a ₹76,000 crore Production Linked Incentive (PLI) scheme. While India has started working towards semiconductor fabrication, its strength in sectors such as design, R&D, and IP generation is an added advantage.
India aspires to revolutionize its patent ecosystem that will significantly benefit the semiconductor sector too. The Indian Patent Office (IPO) has significantly improved its processes, enabling quicker patent grants and enhancing the overall patent ecosystem. The entire patent application process is now digitized, enabling 24/7 online filing, e-tracking, and online hearings, eliminating the need for applicants to visit the offices physically.
The establishment of specialized Intellectual Property Divisions (IPDs) in Indian high courts has further strengthened IP protection, ensuring timely resolution of patent disputes.
India's patent filings in the semiconductor sector reflects its willingness to shift toward innovation. As of 2025, foreign entities dominate filings, but domestic growth-fueled by IITs, startups, and conglomerates-is accelerating. Major chip giants like Qualcomm, Samsung, and Huawei are among the top foreign applicants, indicating a significant presence of foreign semiconductor intellectual property (IP) in India.
According to the available data foreign applicants were responsible for about 76% of the patents filed in India between 2005 and 2018, with Qualcomm and Philips leading the filings, according to the Department of Science and Technology (DST) Science & Technology Indicators (STI 2019-20) report. India has also seen a substantial rise in filings of Semiconductor Integrated Circuits Layout-Designs (SICLD). According to a PIB report published in July 2025, IP filings in the last five years have increased by 44% with a rise in Semiconductor Integrated Circuits Layout-Designs (SICLD) by 20%.
India’s increased focus on patenting semiconductors will drive advancements in research and development, bolster domestic manufacturing, and secure a competitive edge in global markets. With significant investment in patenting and legal protection, India is on the path to becoming a semiconductor superpower, capable of leading both in innovation and production.
Looking at India’s near neighborhood, Southeast Asia (SEA), unlike South Asia, has cemented its position as a global Semiconductor manufacturing and services hub. Countries like Malaysia, Singapore, and Vietnam are already leading the Semiconductor manufacturing and ssetrvice industry from the front owing to their respective advantage of location, expertise in Semiconductor manufacturing and attractive government incentives. India’s attempt at scaling up its domestic semiconductor industry is set to benefit its South Asian counterparts immensely.
The views expressed above belong to the author(s).