New Delhi, July 7 -- While India is building domestic capabilities in chip fabrication, packaging and testing, execution remains its biggest challenge due to heavy dependence on imported equipment and supply chain gaps, according to a report by Equirus Securities.

The report said India's semiconductor strategy combines successful elements from leading Asian chip-making nations rather than creating a new model.

It said India has avoided the Chinese approach while adopting government-backed research and development from Taiwan, FDI-led manufacturing from Malaysia, domestic champions from South Korea, and capital discipline from Singapore.

According to the report, India's main challenge is execution, not strategy. It said the country must...