India, Aug. 8 -- Power is no longer located where most governments still assume it to be. For most of modern history it was measured in territory controlled, armies deployed, and natural resources secured. The twentieth century elevated oil into the central instrument of geopolitics. The 21st century has replaced it with something smaller in size but far more decisive in consequence: The semiconductor chip.

India has entered the semiconductor race with ambition and urgency, yet it still risks misunderstanding what the race represents. The national debate is largely focused on investment announcements, fabrication plants, and incentive schemes. These are necessary policy instruments, but they do not define the strategic outcome. The real ...