L&T's Chip Shift: Why India's Semiconductor Story Just Took a Big Step Forward
India's semiconductor opportunity extends beyond chip design, creating value across manufacturing, electronics, infrastructure, materials, and industrial supply chains.
For years, India designed chips but relied on other countries to assemble and test them before they reached smartphones, automobiles, data centres, and industrial equipment.
L&T Semiconductor Technologies has announced that it is shifting its Outsourced Semiconductor Assembly and Test (OSAT) operations to India by partnering with domestic companies such as Tata Electronics. More importantly, the company believes Indian OSAT facilities are now globally cost-competitive.
This is much bigger than a single corporate decision.
Every semiconductor manufactured locally creates demand for precision engineering, automation, specialty chemicals, clean-room infrastructure, industrial gases, electronics manufacturing, logistics, and skilled talent. A stronger domestic ecosystem reduces dependence on imports, shortens supply chains, and encourages global companies to manufacture in India.
Think of semiconductors like the foundation of a modern city. The chip may be the building, but roads, electricity, water, and transport determine how efficiently that city grows. India's semiconductor ecosystem is now gradually building those supporting pillars.
• Larsen & Toubro (LT)