Geopolitical tensions involving Iran have underscored the need for India to accelerate its domestic semiconductor design capabilities, according to Sanjay Gupta, CEO of Larsen & Toubro (L&T) Semiconductor Technologies.

He said global supply chain risks are more visible now, prompting countries to rethink their dependence on external chip ecosystems. India must move faster to build resilience through indigenous design and innovation.

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Global Risks Highlight Semiconductor Dependence

“The ongoing instability in West Asia has once again exposed vulnerabilities in global technology supply chains. Semiconductors, an important component across sectors from telecom to automotive, remain heavily dependent on a few geographies.”

-said Gupta.

Any disruption can ripple across industries and economies, he added.

He pointed out that recent global crises, from pandemics to geopolitical conflicts, have already shown how fragile chip supply networks can be. The situation in Iran adds another layer of uncertainty, reinforcing the need for countries like India to reduce their reliance on imports.

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India Must Focus on Design-Led Growth

The CEO further stressed that prioritising semiconductor design in India, rather than focusing solely on fabrication, is key.

The country already has a strong base of engineering talent and design expertise, which can be leveraged to build a competitive edge, he added.

He requested that the government maintain sustained policy support and industry collaboration to strengthen the ecosystem.

Investments in research, skill development, and startups will be key to scaling domestic capabilities. A design-led approach, he added, can position India as a significant player in the global semiconductor value chain without requiring the same level of capital as fabrication plants.