India's Semiconductor Sector Eyes Expansion Amid AI Chip Boom: The Kiplinger Letter
As Wall Street’s love affair with chip firms continues, a recent report highlights India’s plans to expand its semiconductor industry.


To help you understand what is going on in the technology and manufacturing sectors and what we expect to happen in the future, our highly experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest…
In addition to the exploding sales of artificial intelligence chips this year the rest of the semiconductor industry continues to look good — either with solid sales growth or sales set to rebound in the second half. AI chip sales are only about 5%-10% of the $600 billion industry.
Inventory levels are back under control for memory chips, after a huge glut last year. Supply chains are stable, for the most part. And there’s strong order growth, a good predictor of future sales. It doesn’t seem as though anything will stop Wall Street’s love affair with chip firms, especially after Nvidia’s recent results beat expectations. Even chipmakers in the automotive and industrial space, now slogging through weak sales, should rebound in sales by year-end. That’s expected to reignite investor interest. Notable risks aren’t likely to dim the outlook but continue to loom, such as geopolitical tensions, the war in Ukraine and U.S. political dysfunction.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Keep an eye on India’s effort to expand its nascent semiconductor industry, according to a recent report by the Information Technology and Innovation Foundation — a tech think tank. The report stems from a federal tech initiative to work with India.
Among the many factors in India’s favor are massive government support, a robust chip workforce, a huge domestic market and competitive labor costs. Many U.S. chip firms already have R&D offices in India, including Intel, Nvidia, and Qualcomm.
Recent developments include memory chipmaker Micron setting up shop, with an assembly and testing facility opening in 2024. AMD is investing $400 million over five years. Plus, the government recently OK’d India’s first major chipmaking plant. A rising Indian chip sector would ease U.S. reliance on Taiwan and China.
Despite promising signs, there are many challenges, ranging from taxation and regulations to transportation and energy. Still, India seems serious about chips
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
Related stories
- Stock Market Today: Nvidia Tops $2 Trillion in Market Cap
- The Best Semiconductor Stocks to Buy
- Semiconductor Sales Will Bounce Back in 2024: The Kiplinger Letter
- Huawei's Chip Breakthrough Triggers U.S. Scrutiny: The Kiplinger Letter
- Best AI Stocks to Buy: Smart Artificial Intelligence Investments
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

John Miley is a Senior Associate Editor at The Kiplinger Letter. He mainly covers technology, telecom and education, but will jump on other important business topics as needed. In his role, he provides timely forecasts about emerging technologies, business trends and government regulations. He also edits stories for the weekly publication and has written and edited e-mail newsletters.
He joined Kiplinger in August 2010 as a reporter for Kiplinger's Personal Finance magazine, where he wrote stories, fact-checked articles and researched investing data. After two years at the magazine, he moved to the Letter, where he has been for the last decade. He holds a BA from Bates College and a master’s degree in magazine journalism from Northwestern University, where he specialized in business reporting. An avid runner and a former decathlete, he has written about fitness and competed in triathlons.
-
The Retirement Bucket Rule: Your Guide to Fear-Free Spending
Forget market declines or rising inflation. With this strategy, you won’t have to worry about any of that during retirement.
-
How Big Will the Fed Rate Cut Be This Fall?
A dismal July jobs report has lifted expectations for fall rate cuts. But just how low could the fed funds rate be by year's end?
-
The Rise of AI: A Kiplinger Special Report
The Kiplinger Letter Our special report looks at the opportunities and challenges of generative AI and how its rapid move into the mainstream is impacting every aspect of our lives.
-
Big Changes Are Ahead for Higher Ed
The Kiplinger Letter A major reform of higher ed is underway. Colleges are bracing for abrupt change, financial headwinds and uncertainty.
-
AI-Powered Smart Glasses Set to Make a Bigger Splash
The Kiplinger Letter Meta leads the way with its sleek, fashionable smart glasses, but Apple reportedly plans to join the fray by late 2026. Improved AI will lure more customers.
-
Breaking China's Stranglehold on Rare Earth Elements
The Letter China is using its near-monopoly on critical minerals to win trade concessions. Can the U.S. find alternate supplies?
-
Things that Surprise Business Owners When It’s Time to Sell
The Kiplinger Letter When it’s time to retire and enjoy the fruits of growing their business, owners are often surprised by how tough it is to give up their baby!
-
What New Tariffs Mean for Car Shoppers
The Kiplinger Letter Car deals are growing scarcer. Meanwhile, tax credits for EVs are on the way out, but tax breaks for car loans are coming.
-
AI’s Rapid Rise Sparks New Cyber Threats
The Kiplinger Letter Cybersecurity professionals are racing to ward off AI threats while also using AI tools to shore up defenses.
-
Blue Collar Workers Add AI to Their Toolboxes
The Kiplinger Letter AI can’t fix a leak or install lighting, but more and more tradespeople are adopting artificial intelligence for back-office work and other tasks.