N. Chandrasekaran: Semiconductors Key to India’s Future, Demand Must Guide Investments
What Happened
Speaking at the Bloomberg New Economy Forum in New Delhi on October 13, 2026, Tata Sons Chairman N. Chandrasekaran stressed that semiconductors will be central to India’s industrial and technological growth. India’s strengths: Large domestic market, skilled workforce, and potential to integrate into global supply chains. Cautionary note: Chandrasekaran warned against “reckless” investments in advanced nodes like 2-nanometre fabs without clear demand, saying commercial viability must guide decisions. Tata Group projects: ₹91,000 crore fabrication plant in Dholera, Gujarat, in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), supported by Dutch firm ASML. ₹27,000 crore assembly and testing facility in Jagiroad, Assam, designed to process up to 48 million chips daily. Strategic view: He compared semiconductors to Tata’s historic investments in steel and power, arguing that chips are essential long-term even if short-term returns are uncertain. Global context: Chandrasekaran highlighted geopolitical risks, energy needs, and technological disruption as factors India must manage while building resilience into its semiconductor ecosystem.
Key Takeaways
India’s semiconductor ambitions are backed by large-scale Tata investments, but Chandrasekaran’s remarks underline the need for financial discipline and demand-driven growth. The projects in Gujarat and Assam could anchor India in the global chip supply chain, provided execution matches commercial realities.