India is betting big on domestic manufacturing of semiconductors – the microscopic brains that power everything electronic from cars to AI processing – in an ambitious bid to slash imports and boost its local industry.But observers say the country should set its sights even higher upstream on the value chain by mobilising its “secret weapon” – a talent pool that could realise its dream to turn “Make in India” into “Engineer in India”.New Delhi earlier this week launched the second phase of its mission with a budget of US$13 billion to build an industrial ecosystem spanning chip design to manufacturing. Building on the first phase, which focused heavily on foundational industrial set-up, the second expands support across the entire supply chain, including developing a large manpower pool.The move on Monday comes as other countries in the region, such as Japan and Singapore, outline multibillion-dollar development plans for their semiconductor industries following chip shortages during the Covid-19 pandemic that exposed dependency on a handful of East Asian manufacturers.Tata Sons chairman N. Chandrasekaran gives a speech at the foundation stone laying ceremony for India’s first AI-enabled semiconductor fab manufacturing facilities in Dholera, Gujarat, on March 13, 2024. Photo: ReutersDelhi has already approved 12 semiconductor manufacturing projects across six states. Three – Micron, Keynes Semicon and CG Semi – have started commercial production this year. They primarily handle assembly, testing and packaging rather than advanced wafer fabrication.