Securing India’s Space Future Through Semiconductor Sovereignty

Lt Gen A.K. Bhatt (r)

Executive Summary

India’s space and defence ambitions hinge on an often-overlooked foundation: semiconductors. From radiation-hardened (rad-hard) chips powering satellites and Gaganyaan to AI-driven electronics for surveillance and secure communications, self-reliance in semiconductors is no longer a matter of industrial policy alone; it is a question of strategic sovereignty.

In this article, we argue why India must urgently build a space-grade semiconductor ecosystem, how the Indian Semiconductor Mission (ISM) and private industry initiatives fit into this vision, and what global benchmarks teach us about combining commercial scale with niche high-reliability capability.

“Satellites do not fail because their rockets falter. They fail when a single chip inside them cannot withstand the radiation of space.”

The Silent Backbone of Space Power

In all conversations, Space is associated with rockets, launch pads, and crew capsules. Yet behind every mission, be it Chandrayaan, Aditya-L1, or the forthcoming Gaganyaan, lies the invisible lattice of semiconductors. These chips are the nervous system of modern space power: from flight computers that navigate through anomalies, to encrypted communication modules that secure defence networks, to payload processors that enable Earth observation and intelligence.

For Space and Defence, however, not all chips are equal. Unlike commercial smartphones, where chips are optimized for speed and power, satellites require radiation-hardened (rad-hard) semiconductors. These chips must withstand extreme cosmic radiation, temperature swings, and long mission lifetimes, often 15 years or more in orbit without failure.

India has historically depended on imports for these specialised chips. This dependence is not just costly, but it exposes our space and defence ecosystem to vulnerabilities from supply chain disruptions to hidden security risks. Especially in the emerging sensitive geopolitical environment, this becomes far more sensitive.

Why Semiconductors Are Now National Security

Semiconductors are no longer just industrial components. They are strategic assets. The global race in chip design and manufacturing is increasingly a contest of power, sovereignty, and security.

• The United States passed the CHIPS and Science Act, allocating $52 billion, explicitly linking semiconductor capacity to national security.
• Europe has tied its chip push to “technological sovereignty,” with radiation-hardened capability as a defence priority.
• China has invested billions in building indigenous chip fabs, with an explicit eye on defence and space.

For India, the implications are clear. If we aspire to be a leading Space power with an Indian Space Station (BAS -Bharatiya Antariksh Station) by 2035, human missions to the Moon by 2040, and a strong defence-space posture, we cannot afford to rely indefinitely on foreign radiation-hardened chips.

India’s Policy Push: The Semiconductor Mission

Fully aware of the criticality, the Government of India launched the India Semiconductor Mission (ISM) under the Digital India umbrella. With incentives of up to ₹76,000 crore, the policy aims to create domestic capacity in fab manufacturing, assembly, testing, and packaging.

The Key developments have been :

• Tata Electronics’ Fab in Dholera, Gujarat: The ₹91,000 crore investment promises India’s first commercial fab, a watershed moment for the ecosystem.
• Micron’s ATMP Unit in Sanand: Focused on memory packaging, this fills a crucial gap in backend processes.
• IIT-Led R&D via the Chips-to-Startup (C2S) Programme: Training over 85,000 engineers, building IP blocks, and creating indigenous design capacity.
• SCL Chandigarh Modernisation: Once the workhorse of ISRO, this facility is being upgraded for high-reliability applications.

These steps mark a strong beginning. Yet, from an industry perspective, much of the discourse still revolves around commercial-scale chips, mobile phones, EVs, and consumer electronics. The space-grade requirement, however, is different. These chips need to be radiation-hardened to function reliably in the harsh conditions of space. This requires specialized fabrication using Silicon-on-Insulator (SOI) or Silicon Carbide (SiC) technologies, along with a triple backup system in the circuits to guard against radiation-induced errors. They must also undergo rigorous testing and meet NASA, ESA, and Military Standard (MIL-STD) reliability benchmarks, which set some of the world’s strictest requirements for performance in extreme environments..

In India, while ISRO has made strides in limited space-grade development, the country lacks industrial-scale capacity. This is where the private sector needs to step in.

Global Benchmarking and a Path Forward

India is not alone in this challenge. The U.S., with entities such as NASA and DARPA, and companies like BAE Systems and Honeywell, has a mature, government-funded space-grade semiconductor ecosystem—the European Space Agency (ESA) partners with firms like Airbus and STMicroelectronics to develop radiation-tolerant designs. The takeaway for India is clear: instead of racing to make the newest chips, the focus should be on building reliable, space and defence-ready chip technology that can withstand extreme conditions.

Source: www.fortunebusinessinsights.com/space-semiconductor-market-105223

Possible Pathways for India’s Semiconductor Ecosystem

As India charts its semiconductor journey, specific enablers could strengthen our capabilities in space-grade and defence-grade electronics:

• Dedicated radiation-hardened capability: Upgrading existing facilities such as ISRO’s Semiconductor Laboratory (SCL) in Chandigarh, or establishing new public–private ventures, to produce radiation-hardened nodes in the 65–180nm range.
• Targeted Incentives: Extending the scope of ongoing schemes like the India Semiconductor Mission (ISM) or Production Linked Incentive (PLI) to explicitly cover high-reliability, space-grade chips.
• Collaborative R&D: Joint programs involving IITs, IISc, ISRO, and private industry to develop indigenous design IP for processors, encryption modules, and AI accelerators.
• Strategic Resilience: Establishing secure reserves of key space-grade components to reduce exposure to global supply chain disruptions.

The Space Industry Perspective

For India’s private Space ecosystem, semiconductors are a foundational enabler of self-reliance:

• Startups: Over 300 Indian space-tech startups, from satellite manufacturers to analytics firms, depend on secure and reliable chips.
• Defence–Space Convergence: With doctrines recognising space as the “fifth domain of warfare,” semiconductors form the critical link between satellites, ground systems, and secure networks.
• Import Dependence: With nearly 90% of advanced semiconductors currently imported, India risks vulnerabilities in critical national missions.

ISpA’s advocacy has consistently highlighted three enablers for this ecosystem:

1. Integration of space-grade chip production within India’s semiconductor roadmap.
2. Public–private partnerships to strengthen testing and qualification facilities.
3. International collaborations to adopt global best practices and standards.

Source: www.fortunebusinessinsights.com/space-semiconductor-market-105223

Building the Ecosystem: Policy + Industry + R&D

For India to succeed, three elements must align:

1. Policy Support: ISM provides a strong start, but a dedicated carve-out for space-grade semiconductors is essential.
2. Industry Investment: Companies must recognise the strategic value of high-reliability electronics, even if volumes are lower than consumer markets.
3. R&D Depth: Academic and research institutions, working with ISRO and industry, must drive indigenous design IP to support future missions.

Conclusion: Securing the Final Frontier

India’s semiconductor mission is gathering momentum, yet without a dedicated focus on space-grade, radiation-hardened chips, we risk building fabs that serve only commercial markets. Genuine strategic autonomy will come not from the number of rockets launched, but from the silicon inside them.

Every satellite India places in orbit today still relies on imported semiconductors. This dependence is not merely a supply-chain risk; it is a strategic vulnerability. Space and defence electronics demand components that can withstand radiation, extreme temperatures, and mission-critical failures. Unless these are designed and manufactured indigenously, India’s aerospace and defence ambitions will remain tethered abroad.

For the Space industry, the message is clear: India’s semiconductor roadmap must evolve from being a commercial play to a national security imperative. With ISM, ISRO, DRDO, academia, and industry working in cohort, we can build a resilient ecosystem of space grade semiconductors that ensures sovereignty in the final frontier.

Lt Gen AK Bhatt PVSM UYSM AVSM SM VSM (r), Founding Director General of the Indian Space Association and Chairman of IIIT Kota and Ranchi, is a distinguished former Indian Army officer with over 39 years of service, including as Director General Military Operations and Chinar Corps Commander. Recognized for his leadership and strategic expertise, he now champions the growth of India’s private space sector.