India's tightening AI governance rules are no longer just shaping compliance strategies. They are beginning to influence where artificial intelligence workloads are deployed, pushing sensitive applications toward India-hosted and on-premise infrastructure

AOI Electronics, a Japan-based semiconductor assembly and test provider, has entered into a business alliance with India's Kaynes Semicon Private Limited and Japan's Mitsui to support the establishment of a semiconductor back-end processing business in India

India is bolstering its semiconductor ecosystem through strategic overseas acquisitions, potential integration into Apple's supply chain, and specialized domestic manufacturing, while navigating delays in major facility ramp-ups

India is emerging as one of the most important global markets for artificial intelligence, driven by rapid adoption of large language models, a vast digital user base, and some of the world's lowest mobile data costs. According to the Economic Times, citing analyses by Bank of America (BofA), and usage data cited by Reuters, India has become the largest market by daily active users for AI chatbots such as ChatGPT, Google's Gemini, and Perplexity, underscoring its growing influence on how AI products are deployed, tested, and refined

Tata Group has invested an additional INR15 billion (US$170 million) in Tata Electronics, the company that manufactures iPhones for Apple, bringing its total investment in the subsidiary to INR45 billion over the past year. The latest funding, made in October, reflects ongoing support for expanding production capacity as Tata Electronics strengthens its role in Apple's global supply chain

Chennai-based iVP Semiconductor is betting it can crack India's power semiconductor market by solving a problem that global chipmakers largely ignore: the poor service experience of Indian OEMs, who rank low in their priority queues

India's semiconductor sector has increasingly turned to cross-border acquisitions and investments, reflecting a broader push to accelerate technology capabilities and integrate into global supply chains. Notably, Cyient Semiconductors' recent agreement to acquire over 65% of US-based Kinetic Technologies for US$93 million is part of a larger trend of Indian firms targeting foreign semiconductor assets

Cyient Ltd's wholly owned subsidiary, Cyient Semiconductors Singapore Pte Ltd, has entered into a definitive agreement to acquire over 65% of US-based power semiconductor company Kinetic Technologies for US$93 million. The transaction is expected to close by April 30, 2026

In a post-earnings analyst call on December 17, 2025, Micron Technologies outlined plans for capital expenditure in fiscal year 2026, driven by global construction projects and the ramp-up of its India assembly facility in Sanand. The company also noted flat operating expenses through the mid-fiscal year, strong SSD demand, and a phased rollout of HBM4 on the 1-beta process node

Apple is reportedly in preliminary talks with Indian chip manufacturers to assemble and package components for the iPhone, potentially marking a first step in shifting part of its semiconductor operations to India

InnoCare Optoelectronics held an investor conference on December 16, 2025, where company chairman James Yang pointed out that while the global medical device market grows annually by about 5–8%, InnoCare maintains a double-digit growth rate, outperforming the overall market. The company expects to sustain stable growth through 2026

French semiconductor IP vendor Dolphin Semiconductor said its collaboration with HCLTech reflects growing demand for pre-optimized, platform-based system-on-chip development, as energy costs, time-to-market pressure, and design complexity rise

Japanese trading house Sumitomo Corp. plans to double its investment in India's renewable energy sector, committing a total of JPY2 trillion (about US$13 billion) through a joint venture with local clean energy developer AMPIN Energy Transition, underscoring its growing focus on India as a key market for energy transition and industrial growth

As India intensifies its efforts to become a global semiconductor hub, Intel CEO Lip-Bu Tan has expressed support for the country's strategy of pursuing incremental progress, focusing initially on legacy node fabrication for automotive and industrial applications

Intel and Tata to assemble chips locally as global firms, including Amazon, Microsoft, and Vingroup, announced fresh investments in India