ABSTRACT
This chapter discusses the semiconductor microchip sector, which represents only a node in the value chain, with microchips being designed in the city of Bangalore. The availability of skilled manpower at low cost has resulted in the successful integration into the value chain in this sector. However, the learning and upgrading aspects are limited since the backward and the forward nodes in the chain are absent. The future prospects for this industry will be limited unless an ecosystem for manufacturing evolves in the country.
