China, Hong Kong hold India’s chip supply reins

The majority of integrated circuits and micro assemblies imported into India continue to come from China, official data shows. In the first 8-months (April-November) of FY26, nearly 30% of these chips, originated in China with a total shipment worth $5.78 billion.

An additional 18.5%, costing $3.67 billion came from Chinese controlled Hong Kong. While imports from China rose by 3.5%, those from Hong Kong rose by nearly 10%. At a time when Centre is trying to diversify the basket of source nations for these key building blocks, Subhayan Chakraborty breaks down the shifting trade flows.