March 2025
Published: 10 Mar 2025
Author: Precedence Research
We are seeing the prospect of India being a global semiconductor manufacturing powerhouse in 2025," stated Union Minister for Electronics and IT Ashwini Vaishnaw. The announcement was made during the Madhya Pradesh Global Investor Summit 2025 in Bhopal. The first Made-in-India Semiconductor chip should be available for mass production by the year 2025; gradually materializing the semiconductor technology for India's rapid advancement in the past three years.
The Indian Semiconductor Mission (ISM) was launched in December 2021 so that global and domestic players could be incentivized to set up semiconductor fabrication plants, display fabs, and other semiconductor-related manufacturing facilities. The justification of the ISM lies in the larger framework of the "Atmanirbhar Bharat" initiative of India to develop domestic manufacturing and technology in various sectors of the country. Thus, the ISM initiative reflects the long-term vision of the Indian government to import dependency and the domestic supply chain.
Domestic and foreign companies are constantly attracted by investment through the efforts of the Indian government towards self-sufficiency in semiconductors. Micron Technology made known its intentions for a semiconductor assembly and testing plant in Gujarat in June 2020, firmly establishing India's position among the rapidly growing global semiconductor hubs. TATA Electronics and Taiwan's Powerchip Semiconductor Manufacturing Corporation joined forces in September 2024 to create India's earliest such semiconductor production facility with an output of 50,000 wafers per month earmarked for sectors ranging from automotive, computers, data storage to wireless communications. Besides the biggest giants like Larsen & Toubro or Adani Group, many are now participating in the battle, thus solidifying India's place as the leader in the charge of chip manufacturing, supply chain integration, and innovative semiconductor design.
The Indian government is now in the business of developing and fostering international partnerships with other countries to help create Indian semiconductor manufacturing capability, particularly with the United States in the US-India Initiative on Critical and Emerging Technology (iCET). It means sharing knowledge, joint research, and co-development of future semiconductor technologies. Under the Quad-India alliance with the US, Japan, and Australia, security and collaboration of semiconductor supply chains are the emphasis. The Indian government has brought alive several policy initiatives such as the Production Linked Incentive Scheme, Design-Linked Incentive Scheme, Electronics Manufacturing Clusters, R&D, and Skill Development Programs to attract investment and innovation in the semiconductor sectors. Indeed, it aims to strengthen India's position in global tech landscapes.
The semiconductor industry is crucial for a country like India for economic and national security reasons. It suffices to say that semiconductors are required for military operations, telecommunications, and healthcare. By reducing imports, India will reduce its vulnerability to global shortages and other geopolitical issues. This will enhance India's strategic autonomy further, and it will accomplish its military and communication technology self-sufficiency goals. Industry insiders like Rajeev Chandrasekhar, who view this phenomenon in the light of the government's support for semiconductors as a spur to innovation in deep Artificial Intelligence electronics and semiconductors, usually praise such initiatives.
India's first indigenous semiconductor chip will be produced by 2025, one of the most significant milestones signifying that India will have grown into a global semiconductor powerhouse. The achievement will not only create high-value job opportunities but also stimulate innovation and local manufacturing. It will assure national and economic security in India and reaffirm the commitment of the country toward technological leadership and independence. Also, it will show how India has become transformed into a great power in the global semiconductor industry.
March 2025
March 2025
March 2025
March 2025