AI demand presents a golden opportunity for India to crack the $400 bn chip equipment supply chain

Chennai: The finance minister announced the launch of ISM 2.0, giving impetus to build domestic capabilities in the semiconductor equipment, chemicals and gases market, estimated to be around $400 billion by 2030, according to IESA and SEMI India, an industry body.

This comes at a time of global supply bottlenecks due to increasing AI workloads. As capex and specific equipment are shifted towards high bandwidth memory and advanced DRAM for training and inference of AI, straining global original equipment makers (OEMs), experts say this presents a rare opportunity for India to build an ecosystem, both by encouraging global players to source more from Indian MSMEs and creating domestic champions in the longer-term.