New Delhi (ABC Live): India did not become the “pharmacy of the world” by discovering the most new drugs. Instead, it succeeded by mastering scale, discipline, cost control, quality, and trust in making high-volume generic medicines. Today, nearly one out of every three generic medicines used worldwide is made in India.
Similarly, the same approach can now apply to semiconductors — the chips that power the digital economy.
Rather than chasing ever-smaller transistors, India can instead aim to become the most reliable producer of essential, high-volume chips. In other words, these chips are the technology version of generic medicines. Consequently, they quietly support phones, cars, factories, and power systems around the world.
Over the past few years, India’s semiconductor policy has moved from announcements to real action. In particular, under India Semiconductor Mission 2.0, the focus has shifted to backend chip assembly, mature-node chip production, and tight links with electronics factories.
Moreover, ABC Live has explained how this policy reset is designed to create fast industrial impact:
➡️ https://abclive.in/2026/02/01/india-semiconductor-mission-2-0/
At the same time, government press releases confirm financial support and policy backing:
➡️ https://www.pib.gov.in/PressReleasePage.aspx?PRID=2231381®=3&lang=1
➡️ https://www.pib.gov.in/PressReleasePage.aspx?PRID=2231345®=3&lang=1
As a result, investments and factory plans are now moving forward across India.
In simple terms, generic semiconductors are chips that:
For example, common categories include PMICs, analog chips, automotive MCUs, display drivers, sensors, MOSFETs, IGBTs, connectivity chips, and memory packages.
Therefore, these chips are everywhere. In short, they are simple, stable, and made in huge volumes.
Wafers → Packaging & Testing → Electronics products
As a result, India can compete without leading the smallest chip sizes.
First, backend plants cost less.
Second, they start faster (18-30 months).
Third, they create jobs quickly.
Finally, they bring export income sooner.
Therefore, policy should give higher support to backend plants, create ready-to-use chip parks, and keep approvals simple.
However, India does not need many fabs.
Instead, build one or two strong clusters and focus on power, analog, automotive, and industrial chips.
As a result, risk falls, and success chances rise.
Equally important, India should target chips with big markets, long life cycles, and stable demand.
Just as public hospitals bought generic medicines, the government can support chip demand.
Key sectors include defence, railways, power grids, EV charging, and telecom.
Consequently, long-term purchase contracts can reduce business risk.
Meanwhile, India must build chip testing labs, failure analysis centres, and car-grade certification labs.
As a result, global buyers will trust Indian chips.
Furthermore, chip making needs engineers, technicians, operators, and designers.
Therefore, India must expand chip-focused colleges, training centres, and internships.
At the same time, small firms should design power circuits, sensor chips, and connectivity chips.
Accordingly, design grants and low-cost tools are critical.
Importantly, India will not lead the smallest chip sizes soon.
However, that is fine.
Just as India does not invent most new drugs but still dominates generics, it can lead in the chip manufacturing scale.
India’s generic semiconductor stack already has three strong anchors:
Together, they mirror the pharma structure:
APIs → Formulations → Finished Medicines
Wafers → Packaging & Testing → Electronics Products
Therefore, Tata acts as the API producer, while HCL-Foxconn and Micron act as formulation plants.
Therefore, India can replicate its generic medicine success in semiconductors by focusing on:
Scale, reliability, cost, and mature technology.
In conclusion, just as generic medicines support global healthcare, generic and specialty semiconductors can support the global digital economy, with India as a major supplier
