India’s semiconductor development policy and implications for Vietnam

Abstract

In the context of global technological competition and the increasingly deep digital transformation process, the semiconductor industry has become a strategic priority. This paper analyzes the semiconductor industry development policy of India, an emerging economy that is restructuring to improve its position in the global value chain. The study uses qualitative analysis methods following a typical case study approach on India, based on the theoretical framework of industrial policy in the context of global technological competition. The research results show that India initially shaped a multi-layered policy structure with three strategic pillars: (i) the national coordination mechanism (ISM); (ii) financial programs to encourage investment (such as ISM, PLI, DLI); (iii) human resource development policy. From the case of India, the study proposes policy recommendations in accordance with Vietnam's institutional conditions and implementation capacity for the semiconductor industry.