India's backend semiconductor makers see temporary relief from material constraints linked to legacy packaging, as KLA opens a US$36 million R&D hub in Chennai to boost AI, software, and process control capabilities.

India is weighing a sweeping set of new security requirements that could force smartphone makers to share sensitive source code with government-appointed laboratories, according to Reuters, citing people familiar with the matter and a review of confidential documents, reigniting a long-running tug of war between New Delhi and global technology companies over privacy, surveillance, and control of digital infrastructure.

India has made measurable progress in nurturing a domestic semiconductor chip design ecosystem, with early outcomes emerging from government-backed programmes aimed at reducing dependence on imported intellectual property and strengthening participation in higher-value segments of the global chip industry.

Apple is set to face a key hearing in India on January 27, 2026, over the calculation of potential antitrust fines linked to its App Store practices. The case, initiated by the Competition Commission of India (CCI) in 2021, examines whether Apple abused its dominant position by requiring developers to use its proprietary payment system, with fees reportedly reaching up to 30%. The investigation stems from complaints by app developers, including Match Group, and Indian startups.

Tata Power Renewable Energy, a subsidiary of Tata Power, plans to establish a greenfield 10GW ingot and wafer manufacturing facility in Nellore district, Andhra Pradesh, with an investment of INR66.75 billion (US$810 million), making it the largest facility of its kind in India. The project, approved by the State Investment Promotion Board (SIPB), will be developed in two phases across 200 acres within the IFFCO Kisan Special Economic Zone, with 120 acres allocated for the initial phase and 80 acres for future expansion, according to PTI, CNBC-TV18, and the Economic Times.

India's backend semiconductor manufacturers are benefiting from a narrow window of materials comfort that is closely tied to the use of legacy packaging technologies.

US-based semiconductor process control and process-enabling technology leader KLA Corporation has inaugurated a new INR3 billion (approx. US$36 million) R&D and Innovation Hub in Chennai, marking a major expansion of its operations in India. The 311,000-square-foot facility is designed to accommodate up to 1,300 employees and will strengthen KLA's software engineering, artificial intelligence (AI), and process control capabilities.