India has been working for over a decade to establish itself in the global electronics and semiconductor space. Prime Minister Narendra Modi on Tuesday inaugurated SEMICON India 2025 in New Delhi. Union Minister for Electronics & Information Technology Ashwini Vaishnaw presented the first "Made in India" semiconductor chip to PM Modi. Addressing the tech summit, PM Modi said, "The world trusts India, the world believes in India, world is ready to build semiconductor future in India" adding that when other countries were facing challenges, India recorded the FY26 Q1 GDP growth of 7.8% which exceeded all the expectations. "India is assured to progress rapidly to become the world's third largest economy," PM Modi said. "Oil may be black gold, but chips are digital diamonds," he said.
While addressing the Semicon India 2025, Union Minister for Electronics and Information Technology, Ashwini Vaishnaw said, "Just a few years ago, we met for the first time to make a new beginning driven by our Prime Minister's farsighted vision, we launched the India Semiconductor mission...In a short span of 3.5 years, we have the world looking at India with confidence. Today, the construction of five Semiconductor units is going on at a rapid pace...We just presented the first 'made in India' chip to PM Modi."
Starting with the Make in India initiative in 2014, the country focused on boosting domestic manufacturing.
This was followed by:
- Electronics Manufacturing Clusters (EMC) Scheme, to support infrastructure for electronics manufacturing.
- Production-Linked Incentive (PLI) Scheme, with ₹76,000 crore allocated to support semiconductor and electronics manufacturing.
- India Semiconductor Mission (ISM), launched in 2021 to guide India’s chip journey from idea to reality.
- Strategic investments in R&D and skill development to create an industry-ready workforce.
Why Semiconductors matters
Semiconductors are the building blocks of modern electronics from smartphones and medical equipment to defense systems and spacecraft. The global chip shortage during the COVID-19 pandemic and Russia-Ukraine war exposed the vulnerability of supply chains dominated by just a few countries. As demand for AI, automation, and smart devices grows, semiconductors are no longer just a tech product they are a matter of *economic security and strategic independence.
India’s rapid progress since 2021
Since the launch of the India Semiconductor Mission, the country has made major strides:
- ₹65,000 crore already committed from the ₹76,000 crore PLI scheme.
- Ten major semiconductor projects approved across six states.
- End-to-end OSAT facility launched in Sanand, Gujarat, expected to deliver the first "Made in India" chip soon.
- Over 23 chip design projects sanctioned under the Design Linked Incentive (DLI) scheme.
Workforce and skill development
India is focusing heavily on talent creation:
- A Workforce Development Pavilion to inspire students and youth
- SEMI University offers 800+ on-demand courses in chip design, manufacturing, safety, and technology trends
- Programs target 1 million new skilled workers by 2030
Sustainability and resilience in focus
With increasing pressure to build sustainable and resilient tech ecosystems, India’s chip strategy also emphasises:
- Water and resource efficiency
- Circular economy practices
- Building climate-resilient supply chains
Global collaborations and strategic milestones
- India’s chip ecosystem is attracting major global players:
- AMD, Micron, Foxconn, Cadence, and others have announced investments
In May 2025, India launched its first 3nm chip design facilities in Noida and Bengaluru, pushing the frontier in advanced design
Challenges: China, EDA tools and global competition
However, India faces growing competition from China, especially after the US recently lifted restrictions on Electronic Design Automation (EDA) software exports to Chinese firms. This move could accelerate China’s chip R&D efforts, posing new challenges for India’s design ambitions.
Industry experts suggest that:
- India must boost domestic EDA capabilities
- Invest in R&D and IP creation
- Speed up design software development and support startups
India's journey from a chip-consuming nation to a potential global semiconductor powerhouse is well underway. The success of SEMICON India 2025 is a reflection of how far the country has come and how much more needs to be done.
