India’s Chips Spearhead Global Semiconductor Revolution

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September 3, 2025

New Delhi – India has reached a pivotal moment in its technological journey with the presentation of the nation’s first domestically manufactured semiconductor chips.The unveiling took place at ‘Semicon India 2025’, a major industry event showcasing India’s growing capabilities in semiconductor production and design.

A Landmark Achievement for Indian Technology

the groundbreaking chips include the Vikram 32-bit processor, a product of intensive research and advancement by the Indian Space Research Organisation’s (ISRO) Semiconductor Laboratory. This achievement underscores India’s commitment to reducing its reliance on imported semiconductors and fostering a self-reliant technology ecosystem.

Developed collaboratively by the Vikram Sarabhai Space Center and ISRO’s Semiconductor Laboratory in chandigarh, the Vikram 32-bit processor is engineered to withstand the harsh conditions of space travel.Its resilience extends to applications in defense systems, aerospace technologies, automotive engineering, and high-reliability energy solutions.

Semicon India 2025: A Showcase of Innovation

Semicon India 2025, jointly organized by the India Semiconductor Mission (ISM) and SEMI, a global semiconductor industry association, served as the ideal venue to demonstrate India’s conversion from a semiconductor consumer to a potential manufacturing powerhouse. With over 350 companies from 33 nations participating, the event highlighted the growing momentum behind India’s semiconductor ambitions.

The event’s theme, “Building the Next Semiconductor Powerhouse,” encapsulates the nation’s vision for the future. It directly aligns with the ‘Atmanirbhar Bharat’ (Self-Reliant India) initiative,a government program designed to promote domestic manufacturing and reduce import dependencies.

India’s semiconductor Landscape: Current Status

Industry analysts project a robust 13% compound annual growth rate (CAGR) for India’s semiconductor consumption through 2030, driven by increasing digitalization across multiple sectors. However, currently, the country relies heavily on imports from nations like Taiwan, China, and South Korea, creating vulnerabilities in the supply chain.

A meaningful step towards addressing this challenge was the launch of India’s first end-to-end Outsourced Semiconductor Assembly and Test (OSAT) Pilot Line Facilities in Sanand, gujarat, in August 2025. CG-Semi is poised to produce the first ‘Made in India’ chip from this facility, heralding a new era of domestic production.

Key Metric	Current Status	Projected Growth
Semiconductor Consumption CAGR	N/A	13% (through 2030)
Import Dependence	High	Decreasing with domestic production
Investment in Semiconductor Projects	₹1.6 lakh crore	Expected to increase with ISM 2.0

Government Initiatives Driving Growth

India Semiconductor Mission (ISM)

The India Semiconductor Mission, established in December 2021 with a budget of ₹76,000 crore, is central to India’s ambition of becoming a global semiconductor hub. The ISM collaborates with both central and state governments to provide the necessary infrastructure,utilities,and regulatory support for semiconductor projects across the country.

Two key schemes underpin the ISM’s progress:

• Production linked Incentive (PLI) Scheme: Offers fiscal support of up to 50% for manufacturing projects, encouraging large-scale fabrication and assembly facilities.
• Design Linked Incentive (DLI) Scheme: Focuses on bolstering chip design capabilities and intellectual property development, with 23 chip design projects already approved.

International Collaborations

India is actively seeking international partnerships to accelerate its semiconductor development. Collaborations with companies like Micron and Foxconn aim to establish manufacturing units within India, providing access to valuable technology, market expertise, and global credibility.

Furthermore, the Ministry of Electronics and information Technology has forged agreements with the U.S. National Science Foundation for joint research in semiconductor technology, cybersecurity, and enduring technologies.

Economic Impact and Strategic Importance

the approved semiconductor projects are expected to attract over ₹1.6 lakh crore in investment and generate significant employment opportunities across the manufacturing, design, and support sectors. Projections indicate the creation of over one million skilled jobs by 2030, significantly contributing to India’s economic growth and technological prowess.

‘Made in India’ chips are poised to cater to both domestic demand and the global market, boosting export potential and improving the country’s trade balance. India’s position as a trusted partner in democratic supply chains provides a competitive advantage in serving markets prioritizing supply chain security.

Did You Know? Silicon Carbide (SiC) semiconductors are gaining prominence in electric vehicles and renewable energy due to their superior efficiency and thermal conductivity.

what role do you envision for India in the global semiconductor supply chain within the next decade? What further steps can India take to strengthen its semiconductor ecosystem?

Looking Ahead: India’s Semiconductor Future

India’s journey in semiconductor manufacturing is still in its early stages, but the momentum is building. The focus on indigenous design, coupled with strategic government initiatives and international collaborations, positions India for sustained growth in this critical sector.The success of the Vikram processor is a testament to India’s capabilities, and the ongoing investments through the ISM are laying the foundation for a vibrant semiconductor ecosystem.

Frequently Asked questions About made in india Chips

• What is India’s first Made in India chip?

  Ans. The Vikram 32-bit processor developed by ISRO’s Semiconductor Laboratory.

• What is the India Semiconductor Mission (ISM)?

  Ans.A government initiative aimed at establishing india as a global hub for semiconductor and display manufacturing.

• How much financial support is offered through the PLI scheme?

  Ans. Up to 50% fiscal support for semiconductor manufacturing projects.

• How many semiconductor projects have been approved in India?

  Ans. Ten projects, representing an investment of over ₹1.6 lakh crore.

• What is the projected growth for India’s semiconductor consumption?

  Ans. A compound annual growth rate (CAGR) of 13% through 2030.

• What is the significance of the OSAT pilot facility in Gujarat?

  Ans. It represents a major step towards domestic semiconductor assembly and testing capabilities.

• What role do international collaborations play in India’s semiconductor ambitions?

  Ans. they provide access to technology, expertise, and global markets.

Share your thoughts on India’s semiconductor revolution in the comments below!

How might the Production Linked Incentive (PLI) scheme specifically alter the competitive landscape for global semiconductor companies?

The Rise of India’s Semiconductor Industry

India is rapidly emerging as a key player in the global semiconductor landscape. Driven by government initiatives, increasing domestic demand, and a skilled engineering workforce, the nation is poised to become a significant hub for chip manufacturing, semiconductor design, and related technologies. This isn’t just about self-reliance; it’s about reshaping the global electronics supply chain.

Government Initiatives Fueling Growth

The Indian government has launched several ambitious programs to boost the semiconductor ecosystem:

Production Linked Incentive (PLI) Scheme: offering financial incentives to companies investing in semiconductor manufacturing and design. This scheme is attracting both domestic and international players.

India Semiconductor Mission: A comprehensive plan with an estimated budget of $10 billion to develop a robust semiconductor and display manufacturing ecosystem.

Modified Program for Development of semiconductors and Electronics Manufacturing Ecosystem (SPECS): Aims to provide infrastructure and support for the establishment of semiconductor facilities.

Vision India 2047: Long-term strategy to position India as a global leader in electronics and semiconductor technology.

These initiatives are designed to reduce india’s reliance on imports, currently exceeding $24 billion annually, and establish a self-sufficient semiconductor industry.

Key Players and Investments

Several major companies are investing heavily in India’s semiconductor sector:

Tata Electronics: Partnering with taiwan’s Powerchip Semiconductor Manufacturing corporation (PSMC) to establish a $11 billion semiconductor fabrication plant in Gujarat. This marks a significant step towards domestic wafer fabrication.

Vedanta: Collaborating with Foxconn to build a $1.54 billion semiconductor manufacturing plant, though facing some delays, the project remains a key component of India’s ambitions.

HCLTech: Expanding its semiconductor engineering and design capabilities, focusing on advanced technologies like RISC-V.

Intel: Exploring opportunities for setting up a design center and potentially manufacturing facilities in India.

Applied Materials: Expanding its presence in India to support the growing semiconductor industry with equipment and services.

These investments are creating a ripple affect, attracting smaller companies and startups focused on semiconductor design services, chip packaging, and testing.

The Focus on Semiconductor Design

While manufacturing is crucial,India already possesses a strong foundation in semiconductor design. The country boasts a large pool of skilled engineers and a thriving ecosystem of design houses.

VLSI Design: Indian engineers are highly sought after globally for their expertise in Very-Large-Scale Integration (VLSI) design.

RISC-V Architecture: India is actively promoting the adoption of the open-source RISC-V instruction set architecture, fostering innovation and reducing dependence on proprietary technologies.

Design-for-Manufacturing (DFM): Increasing focus on DFM techniques to optimize chip designs for efficient manufacturing.

Impact on Global Supply Chains

India’s emergence as a semiconductor hub has significant implications for the global supply chain:

Diversification: Reduces reliance on a few key regions, mitigating risks associated with geopolitical tensions and natural disasters.

Resilience: Creates a more resilient supply chain, capable of withstanding disruptions.

Cost Competitiveness: Offers a cost-competitive alternative to existing manufacturing locations.

Geopolitical Significance: Strengthens India’s strategic position in the global technology landscape.

recent economic data, as reported by Reuters on August 29, 2025, shows India’s economy is gaining momentum despite challenges like U.S. tariffs, highlighting the nation’s resilience and potential for continued growth in the tech sector. This economic strength further supports investment in long-term projects like semiconductor manufacturing.

Challenges and opportunities

Despite the positive momentum, India faces several challenges:

Infrastructure development: Requires significant investment in infrastructure, including power, water, and logistics.

Skilled Workforce: Needs to further expand and upskill its workforce to meet the demands of the industry.

Technology Transfer: Facilitating the transfer of advanced technologies from global partners.

Environmental Concerns: Addressing the environmental impact of semiconductor manufacturing.

However, these challenges also present opportunities for innovation and growth.

Applications Driving Demand

The demand for semiconductors in India is being driven by several key sectors:

automotive: The rapidly growing automotive industry, especially electric vehicles (EVs), requires a significant number of chips.

Consumer Electronics: Increasing demand for smartphones, laptops, and other consumer electronics.

Telecommunications: The rollout of 5G networks is driving demand for advanced semiconductors.

Defense and Aerospace: Growing investment in defense and aerospace technologies.

Healthcare: Increasing use of medical devices and diagnostic equipment.

benefits of a strong Domestic Semiconductor Industry

A thriving domestic semiconductor industry offers numerous benefits:

Economic Growth: Creates jobs, attracts investment, and boosts economic growth.

Technological Advancement: Fosters innovation and technological advancement.

National Security: Enhances national security by reducing reliance on foreign suppliers.

* Digital Transformation: Accelerates digital transformation across all sectors of the economy.