India is on the road to becoming a semiconductor powerhouse
Image: AFP
India will soon reach a milestone in technological advancement with the impending mass rollout of its first indigenously made semiconductor chip, with strong state support from and incentivising by the New Delhi Government.
Announcing the roll-out this year of the first "Made in India" semiconductor 28-90 nm chip at the Madhya Pradesh Global Investor Summit 2025 in Bhopal, Union IT and Electronics Minister Ashwini Vaishnaw said: We are seeing the prospect of India being a global semiconductor manufacturing powerhouse in 2025."
He added: "We targeted a particular segment, which has 60% of market volume, using a targeted approach. Today, we have six units under construction. The first made-in-India chip of 28-90 nm will roll out this year."
This breakthrough is the culmination of three years of rapid semiconductor technology for India's rapid advancement. In February 2022, the Tata Group, in collaboration with Taiwan's Powerchip Semiconductor Manufacturing Corp (PSMC), secured approval for the establishment of India's first semiconductor fab. In September 2024, they established India's earliest semiconductor production facility with an output of 50 000 wafers per month earmarked for sectors ranging from automotive, computers, data storage, to wireless communications.
There was phenomenal interest from investors, and by 2024, funding for semiconductor startups increased to over $28 million (R506m) from $5m in 2023. The investor enthusiasm is attributed to the Indian government's efforts towards self-sufficiency in semiconductors, and the participation of conglomerates like Larsen & Toubro and the Adani Group, adding impetus to the development of India's semiconductor manufacturing sector.
A major player in helping New Delhi reach this stage of development in the semiconductor sector is the India Semiconductor Mission (ISM), which was established to position the country as a global electronics hub and reduce India's reliance on imported semiconductor chips by establishing a self-reliant electronics manufacturing ecosystem in the country. The ISM falls within India's "Atmanirbhar Bharat" programme to develop domestic manufacturing and technology in various sectors of the country.
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With the second phase of the ISM providing support for gases and other elements required for semiconductor production, it has become possible for India to start manufacturing the 28-90 nm chip used in automotives, telecom, power, and trains.
A government initiative to train 85 000 engineers in advanced semiconductor and electronics manufacturing gave further impetus to India reaching its semiconductor milestone..
Semiconductor chip manufacturing is expected to create an employment boom, with some projecting the creation of up to a million new jobs. The Economic Times cited a report by talent solutions company NLB Services, projecting 300 000 jobs in chip semiconductor fabrication, and about 200 000 positions in ATMP (Assembly, Testing, Marking, and Packaging) by 2026. This is in addition to roles in chip design, software development, system circuits, and manufacturing supply chain management.
India's foray into the semiconductor manufacturing space comes at a time of rising demand for faster and more efficient chips, and according to a report by Ince42, India's leading start-up and intelligence platform, the country's semiconductor market is projected to become a $150bn opportunity by 2030.
The semiconductor industry could be a game changer for India's economy and national security. Semiconductors are required for military operations, telecommunications, and healthcare. By reducing imports, India will reduce its vulnerability to global shortages and geopolitical headwinds. It would also help mitigate the negative impact of the US-China trade war by diversifying supply chains, and be potentially beneficial to both the US and India by creating alternative sources for critical components and reducing vulnerability to trade disruptions.
New Delhi also sees the development of a home-grown semiconductor manufacturing sector as an affirmation of its commitment toward technological leadership, innovation and independence.
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