India is aggressively investing in chipmaking and AI infrastructure, with significant progress in design and plant construction. However, the global AI capital expenditure surge has uncertain materialization. While India's efforts could integrate it into global supply chains, the sector is capital-intensive and rapidly shifting. Current Indian fabs focus on automotive/telecom, not cutting-edge AI, requiring reliance on foreign tech. The author suggests a balanced strategy: pursue fabs alongside rapid chip adoption, strengthen digital infrastructure, augment energy, and import top-end chips, hedging against potential AI boom volatility.