KPMG says India’s semiconductor and AI push is moving from policy to execution, citing fab approvals and deep-tech R&D allocation
A KPMG note from the World Economic Forum 2026 points to India’s accelerating semiconductor and AI ambitions, highlighting approvals for multiple semiconductor fabrication plants and increased focus on deep-tech research and development. The message frames India’s next phase as execution-led, with ecosystem building across fabrication, testing, packaging, talent and upstream inputs.
India’s push to build a semiconductor and AI ecosystem is increasingly being positioned as execution-led rather than purely policy-driven, according to a KPMG write-up shared around the World Economic Forum 2026. The note highlights a broadening effort that spans fabrication capacity, testing and packaging, R&D funding and talent creation.
In the report, KPMG points to India approving multiple semiconductor fabrication plants (fabs) and describes this as a shift from intent to capacity building. It also references an allocation for deep-tech research and development, suggesting that public funding and policy frameworks are being used to catalyse private investment and global partnerships.
Ecosystem focus beyond fabs
The note stresses that semiconductor strategy is not only about a single facility coming online. It highlights the need for a wider chain that includes advanced packaging units, testing infrastructure and reliable upstream inputs such as chemicals, minerals and industrial gases. This framing mirrors how semiconductor hubs globally build resilience: by reducing chokepoints across materials, tooling, talent and logistics.
The write-up also links the semiconductor drive with India’s broader AI ambitions, as compute-intensive applications increasingly depend on secure and predictable access to chips, advanced computing infrastructure and associated supply chains.
Why it matters for India’s tech economy
If policy momentum translates into sustained execution, the impact could extend across multiple sectors: telecom, defence electronics, automotive, consumer devices, data centres and industrial automation. Semiconductor capability can also reshape India’s position in global value chains, reducing import dependence while enabling higher-value manufacturing and design work.
- Theme: Shift from policy to execution-led semiconductor capacity building
- Focus areas: fabs, testing and advanced packaging, upstream materials, R&D and talent
- Strategic link: Stronger chip capacity supports AI and critical digital infrastructure