Geopolitical shifts and global diversification away from China are positioning India as a trusted semiconductor partner.
L&T Semiconductors is focusing on fabless design, innovation, and IP creation to strengthen India’s tech ecosystem.
The biggest challenge is shifting from adaptation (like Flipkart and Ola models inspired by Amazon and Uber) to building globally competitive original semiconductor products.
Geopolitical Shifts Are Working in India’s Favour in Tech Industry: L&T Semicon Chief
The CEO of L&T Semiconductors highlighted the need to strengthen India’s fabless ecosystem, emphasized the importance of building robust intellectual property, and outlined the key constraints facing the country’s semiconductor industry
Chief Executive Officer of L&T Semiconductors, Sandeep Kumar
Summary
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India’s semiconductor industry is gaining strong momentum, especially in manufacturing, and evolving geopolitical dynamics are expected to further tilt the advantage in the country’s favour, according to Sandeep Kumar, Chief Executive Officer of L&T Semiconductors.
"Geopolitical shifts are, in many ways, working in India’s favor. Global companies are actively seeking alternatives to China and looking to diversify their supply chains, and India is increasingly seen as a reliable and trusted partner in this context," Kumar added.
In an interaction with Outlook Business, the CEO of L&T Semiconductors highlighted the need to strengthen India’s fabless ecosystem, emphasized the importance of building robust intellectual property, and outlined the key constraints facing the country’s semiconductor industry.
India has set an ambitious goal of becoming a global semiconductor hub by 2030. From your perspective, what are the key elements required to achieve this vision, and where does your company fit within this evolving ecosystem?
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To truly become a semiconductor hub, a country needs to build a comprehensive and well-integrated ecosystem. This includes advanced manufacturing facilities (fabs), strong product design capabilities, reliable material supply chains, and a robust equipment and packaging (OSAT) infrastructure.
At present, we are focused on one critical layer of this ecosystem: semiconductor product design. Our goal is to build a leading fabless company that develops globally competitive semiconductor products from India. We leverage fabrication and OSAT capabilities that are being developed by ecosystem partners, allowing us to stay asset-light while focusing on innovation, design excellence, and speed to market.
In essence, we see ourselves as contributing to India’s semiconductor ambition by strengthening the product and innovation layer, which is just as vital as manufacturing in building a globally competitive semiconductor industry.
From your perspective, what are the most critical gaps India needs to address in its semiconductor ecosystem whether in talent, intellectual property, EDA tools, supply chain, or access to capital?
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The most urgent gap, in my view, is not just infrastructure or capital; it’s the mindset and capability to design globally competitive products.
In the semiconductor industry, global competitiveness is non-negotiable. If a product doesn’t meet international benchmarks in performance, reliability, and cost, it simply isn’t viable. Indigenization by itself is not enough.
Take a simple example: a $1 semiconductor component can be part of a $10–$100 end product. No manufacturer will risk the performance or reputation of their entire system by choosing a subpar component. They will always benchmark against the best global alternatives and select what delivers the highest quality at a comparable price.
That’s why the focus must shift from localization alone to building products that can compete and win on a global stage.
India is widely recognized as a semiconductor design hub. Do you think current policies are overly focused on manufacturing, and should there be greater emphasis on nurturing fabless companies?
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It’s not about choosing one over the other; we need both manufacturing and design to build a complete semiconductor ecosystem.
Fabs and OSATs are long-gestation investments, and the government has already made significant commitments in this area. That momentum will and should continue.
However, supporting design and product development is inherently more complex. Unlike manufacturing, where investments are tangible and outcomes are easier to track, design is intangible and risk-driven. Not every company will succeed, and that uncertainty makes policy support more challenging.
That said, the government is actively working on frameworks to encourage design innovation while balancing these risks. I believe we will see more targeted initiatives in this space in the near future, aimed at strengthening India’s product and fabless ecosystem alongside its manufacturing push.
Which semiconductor product segments are you currently prioritizing such as analog, power, RF, automotive, or others and what is guiding those choices?
We are focused on four key areas: power semiconductors, including next-generation materials like silicon carbide (SiC) and gallium nitride (GaN), for applications across energy, automotive, industrial, and data centers; communication and RF technologies to enable high-speed connectivity; high-performance compute and vision systems for intelligent, compute-intensive use cases; and System-on-Chip (SoC) and Application-Specific IC (ASIC) solutions tailored for industrial and automotive applications such as motor control and power delivery. Overall, our portfolio is aligned with high-growth sectors where efficiency, performance, and reliability are critical.
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How do you navigate the complexities of export controls, trusted supply chain requirements, and evolving geopolitical dynamics in shaping your strategy?
Geopolitical shifts are, in many ways, working in India’s favor. Global companies are actively seeking alternatives to China and looking to diversify their supply chains, and India is increasingly seen as a reliable and trusted partner in this context.
Stronger IP protection frameworks further enhance its attractiveness for semiconductor and technology businesses. While infrastructure is still evolving, sustained government efforts are helping accelerate this progress and position India as a credible, long-term alternative in the global semiconductor ecosystem.
In your view, what is the most critical constraint limiting the growth of India’s semiconductor IP creation ecosystem?
IP creation is a core focus for us. We already have around 70 patents and continue to invest heavily in building proprietary IP. Our goal is to develop differentiated products that can compete with the best globally.
That said, the biggest bottleneck in India’s IP creation ecosystem is mindset. Historically, the focus has been on indigenization adapting or localizing existing global products for the Indian market. While this approach has created large and successful businesses, it doesn’t necessarily lead to the creation of deep, original IP.
For instance, companies like Flipkart and Ola built strong businesses by adapting proven global models such as Amazon and Uber for India. However, the next phase of growth requires a shift from adaptation to true innovation.
To build a robust IP ecosystem, India needs to focus on creating entirely new products and technologies. That’s where long-term differentiation and globally competitive IP will come from.