Are Chinese Chips Compromising Indian Security? HCL Co-founder Says Yes

HCL co-founder Ajai Chowdhry recently intensified the debate over India’s use of Chinese-made electronics, urging the government to consider an outright ban on chip imports from China due to security concerns.

Chowdhry’s remarks, delivered in an October 29 interview, have drawn national attention to vulnerabilities in everyday products and government infrastructure.

Recent revelations have heightened concerns about foreign hardware in India. From biometric attendance systems to closed-circuit television cameras, millions of devices containing Chinese microchips are in active use across the country.

Why Did Ajai Chowdhry Call for a Ban on Chinese Chips?

Ajai Chowdhry argued that the widespread adoption of Chinese chips has left India open to surveillance and data breaches. According to Chowdhry, many imported electronics embed secret backdoors that allow sensitive information to flow back to China.

He cited specific intelligence agency findings that government biometric data had been exfiltrated, framing the situation as a major national security risk.

He stated, “Every product that you see around you today is Chinese chips,” describing this as a dangerous reality for India’s sovereignty.

Chowdhry’s experience spans decades of advising policy, including pivotal roles in quantum research and government committees focused on advanced technology security.

Did you know?
Indian intelligence previously found that biometric attendance data from some central offices was transmitted to China via embedded microchips.

How Are Chinese Chips Embedded in India’s Public Infrastructure?

The reach of Chinese electronics extends into the backbone of India’s infrastructure. Biometric attendance devices, widely installed in government buildings, reportedly use Chinese-origin hardware, putting sensitive data for millions of employees at risk.

Chowdhry warned that not only government offices but also everyday locations, such as streets, public spaces, and private businesses, are surveilled by cameras containing Chinese microchips.

Hikvision and Dahua, Chinese tech firms, control more than half of India’s surveillance market. With the integration of their hardware into CCTVs and other monitoring tools, intelligence sources estimate that a majority of Indian surveillance networks are exposed to foreign access.

Chowdhry asserted that “every street, everything is known to the Chinese today because every CCTV has Chinese chips.”

Are Indian Government Systems Already Compromised?

Security agencies have previously expressed alarm about the presence of Chinese chips in critical systems. Earlier in 2024, reports surfaced of 80,000 biometric devices installed across central and state organizations relying on Chinese hardware, affecting 2.6 million government employees, including those in military institutions.

Investigations found backdoors, creating pathways for unauthorized data transmission overseas.

Government offices were not the sole targets. Industry experts noted that electronics ranging from routers to smartphones often depend on Chinese-manufactured kits, assembling parts locally with limited oversight of underlying chip components.

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Can India Reduce Reliance on Chinese Electronics?

Chowdhry criticized India's manufacturing strategy as dominated by “screwdriver jobs,” in which assembly takes precedence over genuine domestic innovation.

He called for the development of an indigenous “India phone” and locally designed electronics featuring robust security attributes.

Chowdhry’s advocacy aligns with the recent government approval of semiconductor projects valued at over ₹1.6 lakh crore to support technological self-reliance.

While India imported $70.1 billion worth of goods from China in just six months, Chowdhry highlighted the urgent need for investment in domestic chip manufacturing and design capabilities.

He described the present scenario as unsustainable, urging policymakers to foster a supportive framework for homegrown technology firms.

What Regulatory Steps Have Been Taken So Far?

In response to mounting concerns, the Indian government has implemented stricter rules targeting Chinese surveillance equipment. Effective from April 2025, a new legal regime mandates rigorous cybersecurity testing of internet-connected CCTVs in government laboratories before they are approved for sale.

The measure aims to boost safety standards and curtail unchecked imports amid heightened geopolitical tensions.

Policy experts anticipate that these tighter regulations will shift market share away from Chinese vendors while stimulating innovation among domestic solution providers, particularly those focused on high-security installations.

India’s debate over imported Chinese chips intersects with issues of security, sovereignty, and economic strategy.

As standards evolve and voices like Chowdhry’s grow louder, the nation faces a pivotal moment in determining its long-term technological and security roadmap.

Continued investments in local innovation, vigilant policy enforcement, and workforce upskilling will be instrumental as India charts a path toward greater electronic independence.