Semiconductors have emerged as strategic assets at the intersection of economic competitiveness, technological sovereignty, and national security, prompting governments worldwide to adopt extensive industrial policies to strengthen domestic manufacturing capabilities. India responded through the Semicon India Programme by committing substantial fiscal incentives to establish an indigenous semiconductor ecosystem. This article argues, however, that while financial subsidies are necessary to attract initial investment, they are insufficient to ensure the long-term success of India’s semiconductor mission. The central thesis advanced is that regulatory execution—rather than fiscal support alone will ultimately determine whether India succeeds in establishing a globally competitive semiconductor industry. The study employs a doctrinal legal methodology supplemented by comparative policy analysis and regulatory governance analysis. It examines the legal and institutional frameworks governing land acquisition, environmental approvals, water and power security, labour regulation, customs administration, technology transfer, export controls, and intellectual property protection, while comparing India’s approach with those of Taiwan, South Korea, Japan, the United States, the European Union, and China. The analysis demonstrates that contemporary semiconductor competition has evolved beyond subsidy races towards institutional capacity, administrative predictability, and effective regulatory coordination. As an original analytical contribution, the article proposes a Regulatory Execution Index (REI), a diagnostic framework designed to assess semiconductor readiness by evaluating nine critical dimensions of regulatory performance and identifying execution bottlenecks that constrain industrial development. The article concludes that India’s comparative advantage will depend less on increasing financial incentives and more on ensuring timely regulatory clearances, infrastructure readiness, legal certainty, coordinated Centre–State governance, and robust protection of technology and intellectual property. Accordingly, execution-focused governance reforms should become the principal determinant of India’s long-term semiconductor strategy.