India's position in global equity market capitalisation has slipped to seventh place, overtaken by Taiwan and South Korea, whose semiconductor markets have surged due to AI-driven demand. Taiwan's market cap reached approximately $4.95 trillion, while South Korea surpassed $5 trillion. In contrast, India’s market cap stands at $4.8 trillion, highlighting a critical gap in its semiconductor strategy. Experts warn that simply building data centres and consuming AI applications is insufficient; a robust semiconductor ecosystem is essential. This includes not only manufacturing but also supporting infrastructure like specialty chemicals and trained talent. India has opportunities in sectors such as automotive, where demand for locally designed chips could grow. However, challenges remain, including the need for a supportive framework for mid-sized technology firms. The lessons from South Korea's three-decade industrial strategy in semiconductors underscore the importance of stable governance and disciplined implementation for India to transition from an AI consumer to a producer of AI infrastructure.