India roundup: India's chip push moves beyond fabs as yield, supply chains and new technology become the next test

India’s semiconductor strategy is shifting from facility attraction to capability building, posing real pressure on global supply chains. Upstream, the country must overcome dependencies on critical materials like rare earth magnets and photoresists, driving up operational costs for foreign investors. Midstream, improvements in yield rates and labor regulations will directly affect production efficiency, especially under rapid technology advancement. Downstream, domestic demand may force multinational firms to restructure their supply chains, particularly amid intensifying U.S.-China competition. Competitors such as Taiwan, South Korea, and Singapore are likely to accelerate policy and technology support to maintain their leadership. Over the next 12–24 months, if India fails to achieve breakthroughs in key technologies, its chip sector will remain confined to a manufacturing base, losing strategic influence in global supply chain integration.