India's Semiconductor Security Challenge: How Imported Chips Threaten Digital Infrastructure

"The more foreign components you buy, the lesser assurance you have," cautions Prof. Mukhopadhyay (Right).

Chips are the new oil in today's digital economy. These tiny semiconductor components are attracting enormous investments globally, but they bring significant security risks. India faces a critical shortage of specialists in computer hardware forensics, with very few computer scientists and 'white hat hackers' who can ethically examine hardware vulnerabilities. IIT Kharagpur stands at the forefront of this specialized field in the country.

In our data-driven world, semiconductors have become essential to digital economies. These engineering marvels power everything from smartphones to banking systems, power grids, and satellites. However, India imports nearly all its semiconductor chips, creating a substantial vulnerability even as the country becomes increasingly attractive for global tech giants establishing massive data centers. Hardware security has become as crucial as software or cybersecurity in this landscape.

India has recently seen remarkable investment commitments from tech giants. Microsoft CEO Satya Nadella met with Prime Minister Narendra Modi and announced a $17.5 billion investment. Google CEO Sundar Pichai previously committed $15 billion for a computer facility in Vishakhapatnam. Amazon Web Services is investing $7 billion in Telangana, while OpenAI reportedly plans a $7 billion investment in India. The total pledges approach $46.5 billion this year alone. All these facilities will rely on imported chips, highlighting potential security vulnerabilities even as India develops its own semiconductor mission.

A modern semiconductor chip represents an entire technological universe compressed into a minuscule space. Using nanometer-scale technology, a single chip can contain billions of transistors spread across seven or more intricate layers. These sophisticated components power everything from personal devices to critical national infrastructure like financial systems and defense networks. Most concerning is that these chips typically cross 70-80 international borders during production before reaching India, with each transfer point representing a potential security compromise.

Professor Debdeep Mukhopadhyay, a leading computer scientist and cyber forensics expert at IIT Kharagpur, demonstrates the difference between an original chip and a perfectly forged copy. He emphasizes that "trust in hardware is not absolute - it must be engineered by design."

India is rapidly moving toward becoming a trillion-dollar digital economy. From the Aadhaar identification system to UPI payment infrastructure, smart cities, and advanced telecommunications networks, the country's reliance on digital systems is unprecedented. However, this transformation depends heavily on imported chips. A single compromised component in critical infrastructure like power grids or defense communications could have devastating consequences.

Professor Mukhopadhyay leads a team of young researchers and cyber forensics experts at IIT Kharagpur who are working to address these challenges.

The Indian government recognizes these vulnerabilities and has initiated programs like the Cyber Physical Security Systems Mission and the India Semiconductor Mission. However, experts emphasize these are merely starting points. Building robust hardware security infrastructure requires substantial investment, advanced testing facilities, and skilled professionals trained in hardware forensics.

In semiconductor security, trust must be engineered rather than assumed. The concept of a "hardware root of trust" - a minimal, verifiable foundation for secure systems - is essential. At IIT Kharagpur, Professor Mukhopadhyay's laboratory pioneers techniques to inspect chips using scanning electron microscopes and X-ray imaging. "Seeing is believing," he explains. "You cannot trust what you cannot inspect." Modern counterfeit chips appear identical to genuine components, making detailed hardware forensic examination necessary to detect forgeries.

This laboratory, established in 2008 as one of India's first dedicated hardware security facilities, plays a crucial role in strengthening the country's digital infrastructure. Here, chips undergo thorough dissection, analysis for side-channel vulnerabilities, and certification for trustworthiness.

India's industrial leaders recognize the importance of hardware security. Gautam Adani, one of India's wealthiest entrepreneurs, recently visited Professor Mukhopadhyay's laboratory at IIT Kharagpur. The Adani Group, in partnership with Google, is establishing India's largest AI data center in Visakhapatnam as a cornerstone of the country's digital future. For Adani, ensuring that the hardware powering this massive infrastructure remains free from compromised components is essential.

Gautam Adani visits the computer forensics lab of Prof Debdeep Mukhopadhyay at IIT Kharagpur

"They are planning a distributed ecosystem for cyber-physical systems," Professor Mukhopadhyay notes. "And everything starts with trustworthy hardware." This visit highlighted the growing awareness among industry leaders that effective cybersecurity begins at the hardware level.

Google CEO Sundar Pichai recently confirmed that the 'Vizag AI data centre will be Google's largest-ever investment in India, approximately $15 billion over five years (2026-2030), and the company's biggest AI hub outside the US. He also confirmed the Adani Group's collaboration for the gigawatt-scale campus.'

Microsoft has not yet disclosed complete details of its plans, but may establish a substantial facility in Hyderabad.

While national security and industrial resilience dominate discussions, individual citizens must also participate in cybersecurity efforts. With smartphones ubiquitous across India, every citizen represents a node in the digital network. Are we secure?

"We are as secure - and as insecure - as anyone in the world," Professor Mukhopadhyay observes.

Basic security practices remain important: strong passwords, avoiding sensitive transactions on public Wi-Fi, and staying updated on security measures provide significant protection. However, vulnerabilities remain for targeted attacks, highlighting the importance of systemic security built into both hardware and software.

India's semiconductor mission aims to reduce import dependence, but constructing fabrication and testing facilities addresses only part of the challenge. Equally important is establishing trust. Every chip entering India's critical infrastructure requires inspection, verification, and certification. Currently, facilities like IIT Kharagpur's laboratory can test only one chip at a time. For a country of India's scale, this process requires automation and robotization supported by substantial funding.

Cybersecurity extends beyond firewalls and encryption to ensuring the fundamental components of digital systems - semiconductor chips - remain uncompromised. In an era where chips represent strategic assets comparable to oil, India cannot afford complacency. National security, economic stability, and the trust of a billion citizens are at stake.

As Professor Mukhopadhyay advises: "Don't be paranoid, but don't be careless either. We need to make our systems more and more trustworthy."

India's digital future depends on secure hardware. Though semiconductor chips are physically small, they carry enormous implications for national security. Vigilance, investment, and continuous innovation represent the only viable path forward.