Building India's Chip Dynasty
An analysis of Nvidia's global supply chain and the emerging Indian companies poised to create a parallel, self-reliant semiconductor ecosystem.
The Global Blueprint: Nvidia's Supply Chain
Nvidia, a fabless company, designs the world's most advanced GPUs but relies on a complex global network of specialized partners for manufacturing. This ecosystem provides a model for India's ambitions.
Chip Design
Nvidia (USA)
Wafer Fabrication
TSMC (Taiwan), Samsung (S. Korea)
Assembly & Testing
Amkor (USA), ASE (Taiwan)
Key Materials
SUMCO (Japan), Shin-Etsu (Japan)
The Indian Analogy: Mapping a Future Ecosystem
For this analysis, we position a company like CG Power and Industrial Solutions, which produced India's first commercial semiconductor, as the anchor 'Indian Nvidia'. Around this anchor, a new ecosystem of suppliers must emerge.
Core Function: Foundry & Fabrication
This is the heart of chip manufacturing, where designs are etched onto silicon wafers. It is the most capital-intensive part of the value chain.
Comparing the established global leaders with India's most prominent emerging player in large-scale fabrication.
Core Function: Assembly & Testing (OSAT)
Once wafers are fabricated, OSAT (Outsourced Semiconductor Assembly and Test) companies cut, package, and test the individual chips.
India has existing players in this segment who are positioned to scale significantly as domestic manufacturing grows.
The Complete Value Chain: A Comparative Look
Building a robust ecosystem requires capabilities at every stage, from raw materials and design to the final packaged chip. The table below maps Nvidia's key suppliers to their potential Indian counterparts, highlighting both existing strengths and future opportunities.
Visualizing the Indian Semiconductor Ecosystem Flow
This flowchart illustrates how the different Indian players could interact in a mature ecosystem, from initial design to the final, packaged chip ready for integration into electronic devices.
1. Chip Design & IP
(Tata Elxsi, MosChip)
2. Raw Material & Wafer Supply
(Vedanta, International Suppliers)
3a. Wafer Fabrication
(Tata Electronics, CG Power)
3b. Memory Production
(Micron - Sanand)
4. Assembly, Packaging & Testing (OSAT)
(Kaynes Technology, SPEL Semiconductor)
5. Final Packaged Chip
Ready for Electronics Assembly (Dixon, etc.)
