Ashwini Vaishnaw, the Union Minister for Electronics and Information Technology, announced at the Confederation of Indian Industry's (CII) Annual Business Summit on May 29, 2025, that India is on track to introduce its first domestic semiconductor chip by the end of 2025, marking a significant step toward technological independence. Targeting the 28–90 nanometer (nm) market, this milestone establishes India as a rising force in the global semiconductor market, which is expected to reach a valuation of over USD 1 trillion by 2030. With a strong ecosystem in development and six fabrication units currently under construction, India's semiconductor aspirations represent a calculated fusion of international cooperation, investment, and innovation.
The Chip: Specifications and Market Relevance
Targeting a crucial market segment that makes up around 60% of the world's semiconductor demand, the first "Made in India" semiconductor chip operates in the 28–90 nm range. Many industries use this range, including:
The 28–90 nm category is still crucial for embedded and industrial applications, giving India a commercially feasible entry point, even though smaller nanometer chips (below 28 nm) offer better performance and energy efficiency. According to Vaishnaw, "This year is anticipated to see the introduction of the first Made in India chip." Since we started this journey in 2022, things have been going steadily forward.
India’s Semiconductor Journey
The India Semiconductor Mission (ISM), a focused program under the Digital India Corporation to promote a thriving semiconductor and display ecosystem, was established in 2022, marking the beginning of India's semiconductor aspirations. With an initial investment of INR 760 billion (roughly USD 9.13 billion), the ISM seeks to make India a global center for electronics manufacturing and less dependent on imported chips.
Since 2022, significant progress has been made:
Six Fabrication Units: Six semiconductor fabrication units are currently being built as of May 2025. The HCL-Foxconn joint venture, which was approved on May 15, 2025, and involved an investment of INR 37 billion (USD 433.6 million), is a noteworthy example. This plant, which will produce 20,000 wafers a month, is situated close to Jewar Airport in Uttar Pradesh (India Briefing).
Tata Electronics' Mega Project: With an investment of INR 910 billion (USD 10.44 billion), Tata Electronics signed a fiscal support agreement for a semiconductor factory in Dholera, Gujarat. Production at this facility is scheduled to start in 2026 and is anticipated to generate over 20,000 jobs and 50,000 wafers per month (India Briefing).
Production is scheduled for October 2027 at the Renesas OSAT Facility, which is being established in Sanand, Gujarat, by Renesas Electronics in partnership with CG Power and Stars Microelectronics (India Briefing).
Additionally, the government has implemented programs such as the Production Linked Incentive (PLI) scheme for electronics manufacturing and the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), which offer financial incentives to increase domestic production and draw in foreign investments.
Global Collaborations and Strategic Partnerships
India's semiconductor projects have attracted a lot of attention from around the world, leading to partnerships that improve its technological prowess:
In order to lower the energy consumption of neural networks, AMD teamed up with the Society for Innovation and Entrepreneurship (SINE) at IIT Bombay in July 2024 to offer grants to startups creating energy-efficient Spiking Neural Network (SNN) chips (India Briefing).
Adani Group and Tower Semiconductor: MeitY is reviewing a proposed USD 10 billion joint fab in Panvel, close to Mumbai, indicating significant private-sector involvement (India Briefing).
Agreements between India and Singapore were signed to support the development of semiconductor clusters and the cultivation of talent during Prime Minister Narendra Modi's visit to Singapore (Economic Times).
US-India Partnership: The US and India are working together to improve semiconductor supply chains by evaluating regulatory frameworks and infrastructure under the CHIPS Act 2022 (US State Department).
These collaborations demonstrate India's increasing clout in the global semiconductor market by utilizing foreign know-how to develop indigenous capabilities.
Skill Development and Workforce Training
Maintaining India's aspirations in the semiconductor industry depends on having a skilled workforce. To meet this need, the government has started a number of initiatives:
Training in Assam: Around 1,500 young people from Assam, mostly women, are receiving training at Tata facilities in Bangalore in order to become leaders of the Jagiroad semiconductor plant, which is expected to start operations in 2025 (India Briefing).
Program for Future Skills: With a larger objective of training 85,000 engineers nationwide, 20,000 engineers in Madhya Pradesh are receiving training in advanced semiconductor and electronics manufacturing (Economic Times).
The Design Linked Incentive (DLI) scheme, which promotes innovation in chip design, has provided financial support to 12 startups as of September 2024 and has 21 more under review (Indian Express).
Strategic and Economic Consequences
Modern economies are built on the semiconductor industry, and India's entry into this market will have a significant impact. The Indian semiconductor market is expected to reach USD 103.4 billion by 2030, up from USD 52 billion in 2024, according to the India Electronics and Semiconductor Association (IESA) (Glomore). At the same time, it is anticipated that India's electronics market will reach USD 240 billion by 2030 due to government initiatives, a growing middle class, and rising disposable incomes (Glomore).
India's strategic emphasis on semiconductors is in line with the "Digital India" initiative, which aims to strengthen national security and lessen reliance on imports in the face of global supply chain disruptions. Additionally, as nations look for secure and varied semiconductor suppliers, the initiative puts India in a position to benefit from geopolitical changes.
Obstacles and Remarks
India's semiconductor journey is fraught with difficulties, despite its potential. Established firms like Taiwan, South Korea, and the United States dominate this fiercely competitive and capital-intensive sector. Some critics wonder if India can successfully compete by overcoming technological and infrastructure obstacles (Moneycontrol). To support rapid growth, regulatory frameworks and workforce development must also be continuously improved.
These worries are lessened, nevertheless, by the government's proactive strategy, which includes large investments, global alliances, and skill-development initiatives. "India's future depends equally on manufacturing and services," Vaishnaw said, underscoring the importance of maintaining a balanced focus. We need to start producing our own standards, intellectual property, and goods.
Broader Technological and Infrastructure Advancements
India is advancing in related fields outside of semiconductors. Comparing its revolutionary potential to the internet revolution, Vaishnaw emphasized the creation of Sarvam, an AI model focused on India and built to represent the nation's linguistic and cultural diversity (Times Now News). Furthermore, under Vaishnaw's direction, India's railway network has surpassed both the US and Russia to become the second-largest freight network in the world, carrying 1,612 million tonnes a year (Economic Times).
A new policy is being developed to test and scale in-house tech solutions throughout the network, and the railway industry is also incorporating innovation-led startups. These developments support India's aspirations in the semiconductor industry and provide a multifaceted strategy for both technological and economic growth.
Prospects for the Future
An important step in making India a global center for semiconductors is the introduction of the nation's first domestic semiconductor chip in 2025. India is in a strong position to benefit from the growing demand for semiconductors worldwide, with a market expected to reach USD 103.4 billion by 2030 and large investments in fabrication facilities. Long-term sustainability is ensured by the government's emphasis on creating an ecosystem that includes IP, design, and standardization in addition to international partnerships and workforce development.
"The chips are never down in 21st century India," Prime Minister Narendra Modi said at Semicon India 2024. India is a safe bet when things get tough (Energetica India). With this vision, strategic initiatives, and international partnerships, India is in a position to reshape its technological trajectory and make a substantial contribution to the semiconductor industry worldwide.