India set to begin commercial chip production by end-2025

Modi announces semiconductor manufacturing milestone as country targets US$100 billion market by 2030.

India will commence commercial semiconductor production by the end of 2025, Prime Minister Narendra Modi announced at the Semicon India 2025 conference in New Delhi, marking a significant milestone in the country's push toward technological self-reliance.

Speaking at the annual semiconductor industry gathering, Modi highlighted the rapid progress of India's chip manufacturing capabilities, noting that test chips from companies including Micron Technology and Tata Electronics are already in production.

"Commercial chip production will begin this year," Modi said. "This reflects how rapidly India is advancing in the semiconductor sector."

The announcement comes as India's semiconductor market demonstrates robust growth, expanding from US$38 billion in 2023 to between US$45-50 billion in 2024-25. The government has set ambitious targets to reach US$100-110 billion by 2030, representing one of the fastest growth trajectories in the global semiconductor industry.

Infrastructure development

The foundation for India's commercial production was established with the August 2024 inauguration of CG Power's Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. This facility represents one of India's first end-to-end semiconductor production capabilities and is expected to roll out the country's first commercial "Made in India" chips.

During the Semicon India 2025 event, IT Minister Ashwini Vaishnaw presented Modi with the Vikram 32-bit processor, India's first fully indigenous microprocessor. Developed by the Indian Space Research Organization's Semiconductor Lab in Chandigarh, the VIKRAM3201 chip demonstrates the country's growing design and manufacturing capabilities.

"Just a few years ago, we met for the first time to make a new beginning driven by our Prime Minister's farsighted vision," Vaishnaw said. "Today, the construction of five semiconductor units is going on at a rapid pace."

Investment and strategic partnerships

India's semiconductor ambitions are supported by substantial financial commitments through the Production Linked Incentive (PLI) scheme, with ₹76,000 crore (US$9.1 billion) allocated and nearly ₹65,000 crore already committed to approved projects.

The country currently has 10 approved semiconductor projects worth US$18 billion across six states, representing cumulative investments of ₹1.60 lakh crore. These include major partnerships with global semiconductor companies, such as Micron Technology's ₹22,516 crore investment in Sanand and Tata Electronics' ₹91,000 crore partnership with Taiwan's Powerchip Semiconductor Manufacturing Corp.

Recent approvals include projects from SicSem Private Limited and 3D Glass Solutions Inc. in Bhubaneshwar, Odisha, marking India's entry into advanced Silicon Carbide semiconductor manufacturing and next-generation packaging technologies.

Design capabilities and innovation

Beyond manufacturing, India is building comprehensive semiconductor design capabilities. The Design Linked Incentive (DLI) scheme has sanctioned 23 chip design projects, supporting both startups and established companies in developing indigenous solutions.

In May 2025, the government inaugurated advanced 3-nanometer chip design facilities in Noida and Bengaluru, positioning India among the few countries capable of working at the most advanced technology nodes. These facilities represent significant technological achievements, as 3-nanometer design capabilities require sophisticated expertise and expensive electronic design automation tools.

Companies like Vervesemi Microelectronics are developing advanced chips for defense, aerospace, electric vehicles, and energy systems, demonstrating India's transition from semiconductor consumer to creator.

Global context and opportunities

India's semiconductor push occurs amid global efforts to diversify supply chains away from traditional manufacturing hubs. With Taiwan producing over 60% of the world's semiconductors, countries worldwide are seeking to establish alternative production capabilities to ensure supply chain resilience.

International confidence in India's semiconductor strategy was demonstrated by Japan's recent pledge to invest 10 trillion yen (US$68 billion) in India, including significant semiconductor and artificial intelligence cooperation.

Modi emphasized India's competitive advantages, including its talent pool, with approximately 20% of global semiconductor design talent based in India, according to government estimates. The country also offers advantages in producing components for semiconductor equipment, supplying critical materials like chemicals and minerals, and providing services from research and development to artificial intelligence and cloud computing.

Workforce development

The semiconductor initiative includes substantial workforce development programs. Over 60,000 students have already benefited from semiconductor training programs, preparing a new generation of engineers and designers for the industry.

The India Semiconductor Mission has established partnerships with academic institutions and launched various skill development initiatives to ensure adequate human capital for the expanding sector. These programs include collaborations with international institutions and industry leaders to provide hands-on training and certification opportunities.

Market impact and future outlook

The Semicon India 2025 conference, featuring over 350 exhibiting companies from 33 countries and expecting more than 15,000 visitors, demonstrates the global industry's interest in India's semiconductor development.

Modi's characterization of India as a future "global hub" for chip innovation reflects the country's ambitions to capture a significant share of the global semiconductor market, which is expected to reach US$1 trillion by 2030.

"Our journey began late, but nothing can stop us now," Modi said, emphasizing the government's commitment to establishing India as a major player in the global semiconductor ecosystem.

The commercial production milestone represents a critical step in India's broader technology strategy, aimed at reducing import dependence while positioning the country as a key supplier for global markets. With the foundation infrastructure now in place and partnerships with major global players established, India's semiconductor sector appears positioned for significant expansion in the coming years.