The Indian government is actively tracking global semiconductor supply constraints as domestic ATMP (Assembly, Testing, Marking & Packaging) units begin operations under the India Semiconductor Mission. Officials expect a sharp rise in chip imports in FY27 as these facilities ramp up production and integrate into global supply chains.
Semiconductors have become one of India’s largest import items, with imports reaching $12.62 billion during April–December FY26, making chips a critical component of the country’s trade and technology ecosystem.
The government’s monitoring reflects concerns over global supply disruptions, even as India accelerates its domestic semiconductor manufacturing push through multiple projects and investments.
Why This Matters
• Highlights India’s dependence on global semiconductor supply chains
• Ensures preparedness for potential chip shortages and disruptions
• Supports smooth scaling of new semiconductor manufacturing units
• Strengthens India’s strategy to build a resilient and self-reliant chip ecosystem