As the world's fifth largest economy looks to boost its domestic chip sector, analysts say India could have a large role to play.
Along with the U.S., India has been looking to forge alliances with other countries that are interested in the same technology.
India has laid out incentives for the industry to manufacture chips in the country.
India has a crucial role to play according to the chairperson of the high tech geopolitics program at the Takshashila Institute.
Many countries want to boost their chipmaking prowess, but the companies and countries that dominate the industry are few and far between. Taiwan and South Korea account for 80% of the global market. Foundries are places that make chips.
In the past, India has not been in the mix of top countries for chips. There aren't many giant Indian chip firms and no leading edge manufacturing companies.
The plan of the government of Prime Minister Narendra Modi is to try and get foreign giants to set up shop in India.
India approved a $10 billion incentive plan for the Semiconductor Industry in December.
New Delhi has a strategy to lure in foreign companies and build areas where India has an advantage.
The large amount of capital required, the time it takes to set up factories and uncertainty over the business, tax and trade environment are some of the reasons why companies don't set up shop in India.
Kotasthane said that previous attempts in India failed due to apprehensions.
There are signs that things are going in a different direction.
Neil Shah, partner at tech consultancy Counterpoint Research, told CNBC that the new government has been heading in the right direction.
India’s strength is the huge domestic consumption market when it comes to semiconductors, being the second-largest populous economy in the world.
India has a number of strengths that could help it become a chipmaking hub.
India is the second largest populous economy in the world and has a huge domestic consumption market for chips.
Incentives will help, according to the analyst. India has a cheaper labor force that makes it cost effective.
India needs a large number of skilled workers in the area of chip design in order to succeed in the Semiconductor Supply Chain.
India has a big role to play.
India has a lot of human power. Large numbers of skilled engineers is where India's strength lies.
Eight of the world's largest Semiconductor firms have design houses in India. India is trying to increase the number of domestic companies that build technology.
The Indian government is taking the next step. We have design centers of international firms, but India doesn't have a lot of intellectual property, because these are companies from other countries which are doing this Kotasthane said that the next step is the effort to build anecosystem where there is some Indianintellectual property by Indian companies.
India can find success in design, but manufacturing is more difficult according to analysts.
Taiwan's TSMC dominates the manufacturing arena when it comes to the most cutting-edge chips.
There are no Semiconductor Fabrication Plants in India. The government is trying to get foreign chipmakers to make chips. A $3 billion manufacturing facility is planned by a group of investors. Tower Semiconductor would be the technology partner.
A $19.5 billion chipmaking facility in India is being built by a Taiwanese firm and an Indian company.
The first Semiconductor Manufacturing Plants in India would be located at these factories. TSMC and Intel are likely to move to India.
The cutting-edge components made by TSMC will not be made by the ISMC Digital plant. India's potential to become a global hub for the latest chips is hampered by the fact that trailing edge chips are still important.
It's equally important that trailing-edge Fabs are there. There will be demand for these for a long time to come. Future applications, such as 5G radios and electric vehicles, will require manufacturing at these locations. Kotasthane said that most current defence applications require trailing edge chips.
Many countries are trying to lure the leading edge foundries with larger incentive packages. India may have to temper its expectations.
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