KPMG at WEF 2026 flags India’s semiconductor and AI momentum, cites fab approvals and deep-tech R&D push

From ambition to execution in semiconductors

At the World Economic Forum 2026, KPMG highlighted what it described as India’s accelerating semiconductor and AI trajectory, arguing that the country is moving from policy intent to execution-led capacity building. The note underscores a fast-developing national narrative: chips are no longer just an industrial priority, but a strategic foundation for secure communications, advanced computing and critical infrastructure.

According to KPMG, India has approved six semiconductor fabrication plants (fabs) as part of this push, with focus extending beyond fabrication into testing, advanced packaging and ecosystem development. The broader story is that building chips at scale requires coordinated action across multiple layers—talent, upstream inputs, and global partnerships.

Deep-tech R&D and ecosystem building

The report also points to additional funding allocations for deep-tech research and development, positioning R&D spending as a way to improve long-term competitiveness in critical technologies. It notes that flagship efforts such as the India Semiconductor Mission and Semicon India are intended to accelerate domestic chip-making infrastructure and strengthen capabilities across design, fabrication and advanced technologies.

Another key theme is upstream resilience: KPMG notes India’s domestic base in chemicals, minerals and gases as an advantage for building a more integrated supply chain for semiconductor manufacturing. In the context of global supply-chain volatility, the ability to localise inputs can be as important as the fab itself.

A longer-term target: global top-five hub by 2030

KPMG frames these moves as part of a longer runway, stating that India is on track to join the top five global semiconductor hubs by 2030. That ambition depends not only on manufacturing facilities, but also on steady project execution, predictable regulation, a skilled workforce and collaboration with international technology and equipment partners.

• Core focus areas: fabs, testing, advanced packaging and ecosystem development.
• Enablers: deep-tech R&D funding, talent initiatives and global partnerships.
• Strategic rationale: critical infrastructure, advanced computing and secure communications.

The semiconductor race is a marathon; India’s near-term test will be whether approvals translate into reliable capacity and a durable supplier ecosystem.

For India’s tech and manufacturing landscape, the message from WEF 2026 is that chips and AI are increasingly intertwined: AI demand drives chip requirements, and domestic chip capability can reduce strategic dependency—making the sector both an economic and national-security priority.