As India intensifies its efforts to become a key player in the global semiconductor manufacturing landscape, Intel CEO Lip-Bu Tan has advocated for a measured and gradual approach to growth within the sector. Speaking on December 15, 2025, Tan suggested that India's semiconductor fabrication efforts would be better served by focusing on incremental progress, beginning with mature node fabrication geared toward the automotive and industrial sectors.
Tan's recommendation aligns with a broader industry consensus that emphasizes the importance of building a strong foundation before pursuing cutting-edge technologies. He stated that focusing on feature-rich process technology, particularly for automotive manufacturers like Tata and Mahindra, would be a "very good way" to develop power management, image sensor, and automotive-related components that do not require the most advanced processes.
This strategy of gradual expansion contrasts with an immediate leap to advanced node manufacturing. Tan believes this step-by-step approach will allow India to "drive profitability and generate cash," ultimately creating a more sustainable and robust semiconductor industry.
His comments come at a time when India's semiconductor industry is experiencing rapid growth, spurred by the government's "India Semiconductor Mission". This initiative aims to position India as a critical node in global supply chains, reducing reliance on other countries. As part of this mission, the government has already approved more than 10 projects worth a cumulative US$18 billion.
Recent developments underscore the growing momentum within India's semiconductor sector. Intel and Tata Electronics announced a strategic collaboration to strengthen India's chip manufacturing ecosystem and accelerate the rollout of AI-powered computing solutions. Under a Memorandum of Understanding (MoU), the companies will explore opportunities to manufacture and package Intel products locally at Tata Electronics' upcoming fabrication and assembly facilities. Tata Electronics is investing approximately US$14 billion in its semiconductor initiatives, including building India's first semiconductor fabrication plant in Gujarat and a chip assembly and testing facility in Assam.
Tan has also emphasized the importance of attracting top chip talent from abroad to bolster India's semiconductor manufacturing capabilities. He specifically mentioned the potential impact of bringing back elite chip design experts currently working overseas.
The focus on mature node capacity aligns with recent analysis highlighting how underinvestment in this area contributed to global chip shortages during the COVID-19 pandemic, particularly for automotive and industrial electronics. Counterpoint Research suggests that while attracting advanced-node fabs is essential, developing mature-node foundries and supporting ecosystem players is crucial for India's semiconductor ambitions to be viable in the near term.
Furthermore, Intel's long-term commitment to India is evident through its nearly four-decade presence in the country and its operation of one of India's largest research and development centers. The recent partnership with Tata Group further solidifies this commitment, with plans to expand AI-powered PCs in India's rapidly growing market.
Lip-Bu Tan's perspective offers valuable guidance as India navigates its path toward becoming a significant force in the global semiconductor industry. By prioritizing a gradual, step-by-step approach, focusing on mature node technologies, and attracting top talent, India can build a sustainable and profitable semiconductor ecosystem.
