India and Indonesia look to strengthen semiconductor ties

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  • August 28, 2026

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Emerging economic powerhouses India and Indonesia are exploring partnerships across the semiconductors, data centres and digital space.

Discussions took place on the sidelines of the BRICS industry ministers’ meeting in Jaipur.

While India is aggressively positioning itself as a major chip design and commercial fabrication hub, Indonesia is rapidly building its capacity around massive raw material reserves and back-end assembly.

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Wafers require silicon, which comes from silica sand. Indonesia holds an estimated 340 million tonnes of silica sand reserves and plans a full export ban by 2027 to force localised processing.

Both countries face infrastructure and geopolitical hurdles however.

Semiconductor fabs require flawless power grids, immense amounts of ultra-pure water, and vibration-free logistics. Both nations face regional infrastructure deficits that still require heavy capital investment.

Moving up the value chain requires highly guarded intellectual property from the US, Taiwan, and Europe. India and Indonesia must carefully navigate global tech nationalism to keep international investments flowing.

This week Germany-based Infineon Technologies announced the acquisition of C2i Semiconductors, a Bangalore technology company specialising in software-defined multiphase controllers and smart power stages for AI data centre applications.

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