Chips critical to India's future, but demand and management key to semiconductor push: N Chandrasekaran

India is well placed to strengthen its role in the global semiconductor industry due to its talent base and large domestic market, but businesses must carefully assess demand and manage investments as the sector expands, Tata Sons Chairman Natarajan Chandrasekaran said.

Speaking during a panel discussion titled 'The End of Predictability' at Bloomberg New Economy 2026, Chandrasekaran said, "Chips are the future. Chips are going to be fundamentally required for domestic institution," highlighting the growing importance of semiconductors for India's industrial and technological development.

He said India had the potential to contribute to the global semiconductor industry, supported by its workforce and domestic demand. However, he cautioned that companies would need to remain mindful of market requirements and management as they make investment decisions.


"We have to be also be careful because you need to keep an eye on management. We need to also see where the demand is," he said, stressing that investment decisions should account for the needs of businesses, people and the country's future.

Chandrasekaran's comments come as Tata Group advances its semiconductor manufacturing plans in India. Tata Electronics is establishing a semiconductor fabrication facility in Dholera, Gujarat, with support from Dutch technology company ASML under an agreement signed in May. The partnership is intended to support the facility's establishment and expansion.

Separately, Tata's semiconductor assembly and testing facility in Jagiroad, Assam, is expected to produce up to 48 million chips per day. The facility is expected to serve sectors including automobiles, telecommunications, consumer electronics and AI-driven devices.

The projects form part of Tata's efforts to build semiconductor manufacturing capabilities in India, spanning chip fabrication as well as assembly and testing.

At the panel discussion, Chandrasekaran had also highlighted the broader effects of technological change, including the potential misuse of advanced technologies and the need to restructure labour markets in the near term. He said technology could deliver significant benefits over the medium to long term, while warning that ongoing conflicts remained a concern.

His latest remarks underline the importance of matching India's semiconductor ambitions with viable demand and effective management as companies develop manufacturing capacity and seek a role in global supply chains.