India’s semiconductor push faces a new cyber risk

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India’s semiconductor push faces a new cyber risk
India’s semiconductor push faces a new cyber risk

India’s push to establish itself as a semiconductor manufacturing hub is opening up a new front that extends beyond technology and supply chains: cybersecurity.

Union Electronics and IT Minister Ashwini Vaishnaw has warned that the country’s growing semiconductor capabilities could attract cyberattacks and other attempts to disrupt the sector. The caution comes as India moves from being largely dependent on imported chips towards building a domestic ecosystem spanning chip design, manufacturing, packaging, testing and supporting infrastructure.

The concern is also tied to the strategic importance of semiconductors. Chips sit at the heart of everything from smartphones and automobiles to telecom networks, defence systems and artificial intelligence infrastructure. As India becomes more involved in their production, any disruption to manufacturing facilities, design environments or connected supply chains could have implications well beyond individual companies.

India has accelerated investments in the sector through the India Semiconductor Mission, with multiple projects approved across fabrication, assembly, testing and packaging. Several facilities have also begun commercial production, marking a shift from policy ambition towards an operational semiconductor ecosystem.

That expansion, however, also increases the number of systems and stakeholders that need to be secured. Semiconductor facilities rely on highly specialised equipment, connected industrial systems, proprietary designs and global suppliers. Protecting these environments therefore requires attention not only to conventional IT security but also to operational technology, intellectual property and supply-chain resilience.

The government’s next phase of semiconductor policy is expected to broaden the ecosystem further, with greater emphasis on domestic capabilities across design, materials, equipment, advanced packaging, research and talent.

The bottom line

India’s semiconductor strategy is increasingly about more than building fabs and attracting investment. As the country strengthens its position in the global chip ecosystem, cyber resilience will have to grow alongside manufacturing capacity. The ability to protect the technology, data, infrastructure and supply chains behind those chips could become just as important as the ability to produce them.

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