Government of India
Press Information Bureau
Technology
India’s Semiconductor Revolution
Powering the Future of Electronics
Posted On: 03 AUG 2025 2:49PM
“Today's India inspires confidence in the world… When the chips are down, you can
bet on India”- Prime Minister Narendra Modi.
Introduction
What makes a phone smart, a computer process millions of commands in fraction of seconds,
a TV bring out the reality as it is happening right now, a satellite collect data and send signals
across the world? It all comes down to that tiny thing called semiconductor chip, that one
can hold between one’s fingers.
Semiconductors are the essential building blocks of modern electronics, acting as the hidden
brains that make devices work. Semiconductors are materials whose electrical conductivity
lies between that of conductors and insulators. They can behave as either, depending on the
conditions, making it ideal for electronic devices. This unique property allows
semiconductors to be used in the creation of tiny electronic chips that control how modern
devices function – not just your everyday devices but even satellites and defence systems. In
Chandrayaan 3 Mission, Vikram lander used Indian made technology and AI to find a safe
landing spot all on its own, all by taking complex decisions. Thus acting as a brain,
semiconductor chips, help machines take decisions while processing heavy data, giving them
iterative direction.
These chips are therefore the backbone of modern electronics, enabling the functioning of
devices such as smartphones, computers, electric vehicles, satellites and even defence
systems like Aaksh teer.
The chips are made from semiconductor material and can store, process, and transfer
information, helping devices perform tasks such as calling, storing data, or sensing electrical
signals. Each chip contains millions (or even billions) of microscale switches called
transistors, which control electrical signals much like brain cells pass messages in our bodies.
It also has other tiny components like resistors, capacitors, and wiring. Together, these
elements process and move information.
Why Semiconductor Industry Matters: A Strategic Context
Semiconductors are at the heart of modern technology. They power essential systems in
healthcare, transport, communication, defence, and space. As the world moves toward
greater digitalization and automation, semiconductors have become integral to economic
security and strategic independence. We can recall the acute shortage of chips that the world
faced following the Covid 19 pandemic and the Ukraine Russia war that affected the
manufacturing of cars, mobile phones and other electronics.
The main drivers of growth in the semiconductor industry include the accelerating pace of
digitization across sectors, which is increasing the demand for faster, more efficient, and
compact electronic components. There is a growing reliance on advanced semiconductor-
based systems to process and store vast amounts of data generated by digital platforms,
smart devices, and connected infrastructure. The rapid adoption of artificial intelligence and
machine learning, both at the edge and in cloud data centres is fuelling the need for high-
performance, energy-efficient chips that can handle complex computing tasks in real time.
Currently, countries like the Taiwan, South Korea, Japan, China and US dominate the
semiconductor industry. Taiwan produces more than 60% of the world’s semiconductors,
including nearly 90% of the most advanced ones. Such dependence on a single region has
exposed global supply chains to significant risks—from pandemics and natural disasters to
geopolitical tensions. Recognizing this challenge, many countries are now building secure
and diversified supply chains. The United States, European Union, Japan, and South Korea
have launched national strategies to support domestic chip manufacturing and reduce over-
reliance on a single region. India is emerging as an important and trusted partner in this
global shift.
India as a player in the Semiconductor Market
The global demand for chips is skyrocketing, but the supply chain remains very fragile owing
to the concentration of the industry in a few limited geographies. There is a clear need for
global diversification of manufacturing. India is emerging as a dominant player in this
regard. Initiatives like including Electronics Systems Design and Manufacturing (ESDM) as
one of the key sectors under Make in India, or the India Semiconductor Mission and Semicon
India programme have helped create an ecosystem to support the industry. The global
semiconductor market is expected to reach USD 1 Trillion by 2030 with India’s market
occupying a substantial portion of it. India has the capacity to emerge as a key contributor to
the 3 primary pillars of the semiconductor manufacturing supply chain – Equipment –
leveraging strong base of MSMEs to produce components for semiconductor equipment:
Materials - India is a rich source of chemicals, minerals and gases which can be utilized by
semiconductor supply chain companies; and Services (R&D, Logistics and supply chain,
major talent in AI, big data, cloud computing and IoT.
In May 2025, the Union Minister for Electronics & IT, Railways, and Information &
Broadcasting, Shri Ashwini Vaishnaw, inaugurated two state-of-the-art semiconductor
design facilities in Noida and Bengaluru. These centres are India’s first to focus on
advanced 3-nanometer chip design, marking a significant milestone in the nation’s
semiconductor innovation journey.
Highlighting the achievement, The Minister stated that designing at 3 nanometers is truly
next-generation, noting that while India had previously achieved 7nm and 5nm designs,
this development marks a new frontier in semiconductor innovation.
As per industry estimates, the size of the Indian semiconductor market was about $38 Bn in
2023, $45-$50 billion in 2024-2025 and is expected to reach $ 100-110$ Bn by 2030.
India Semiconductor Mission
India Semiconductor Mission was approved by the Union Cabinet in December 2021. With
an outlay of ₹76,000 crore, the programme aims to provide financial support for
investments in semiconductor fabrication, display manufacturing & chip design to
strengthen India's integration into global electronics value chains. Envisioned to be led by
global experts in the Semiconductor and Display industry, ISM aims to build a strong
semiconductor and display ecosystem, positioning India as a global hub for electronics
manufacturing and design, while serving as the nodal agency for the efficient and seamless
implementation of semiconductor and display schemes.
Mission focus of ISM
Set up Chip Manufacturing plants(fabs)
Create packaging and testing units
Supporting startups in chip design
Training young engineers
Bring Global companies to Invest in India
Objectives of ISM
Formulate a long-term strategy for developing sustainable semiconductors and
display manufacturing facilities and semiconductor design eco-system in the
country.
Facilitate the adoption of secure microelectronics and developing trusted
semiconductor supply chain, including raw materials, specialty chemicals, gases,
and manufacturing equipment.
Enable a multi-fold growth of Indian semiconductor design industry by providing
requisite support in the form of Electronic Design Automation (EDA) tools, foundry
services and other suitable mechanisms for early-stage start-ups.
Promote and facilitate indigenous Intellectual Property (IP) generation.
Encourage, enable and incentivize Transfer of Technologies (ToT).
Establish suitable mechanisms to harness economies of scale in Indian
semiconductor and display industry.
Enable cutting-edge research in semiconductors and display industry including
evolutionary and revolutionary technologies through grants, global collaborations
and other mechanisms in academia / research institutions, industry, and through
establishing Centres of Excellence (CoEs).
Enable collaborations and partnership programs with national and international
agencies, industries and institutions for catalysing collaborative research,
commercialization and skill development.
The India Semiconductor Mission is driven by the Indian government in collaboration with
various industry associations, research organizations, and educational institutions. It
operates under the guidance of the Ministry of Electronics and Information Technology
(MeitY) and other relevant government bodies. ISM is crucial for strengthening India's
[1]
position in the semiconductor market, which is expected to reach $63 billion by 2026. With
these initiatives, India seeks to build a self-reliant electronics ecosystem, lessen its reliance
on imports, and establish itself as a significant contributor to the global semiconductor
supply chain.
Schemes under ISM:
1. Semiconductor Fabs Scheme
This scheme provides up to 50% fiscal support for setting up semiconductor wafer
fabrication (fab) units in India.
It targets advanced nodes such as 28nm or below, as well as mature technologies.
The goal is to establish high-tech, large-scale fabs that serve both domestic and global
demand.
2. Display Fabs Scheme
Offers financial assistance of up to 50% of project cost to set up display fabrication
units in India.
It covers technologies such as AMOLED and LCD displays, aiming to reduce import
dependence and promote domestic innovation in next-gen display manufacturing.
3. Compound Semiconductors and ATMP/OSAT Scheme
Supports setting up units for compound semiconductors, silicon photonics,
MEMS/sensors, and discrete semiconductors.
It also includes ATMP/OSAT facilities (chip packaging and testing), with up to 50%
capital support, to complete the downstream value chain.
4. Design Linked Incentive (DLI) Scheme
With a total outlay of Rs. 1000 Cr, promotes semiconductor design startups and
MSMEs by offering financial support across product development stages.
The scheme includes reimbursement of R&D costs, access to state-of-the-art design
tools.
Incentives up to ₹15 crore per company to encourage innovation in chip design.
Commitment of ₹234 crore to Indian startups- Since the launch of the DLI Scheme in
2022:
The government had committed the support of ₹234 crore for the chip design
projects from 22 companies with a total project cost of ₹690 crore.
These chips will be used in CCTV cameras, mobile networks, satellites, cars, smart
devices, etc.
Skill Enhancement Under ISM
The India Semiconductor Mission offers various skill development programs, training
workshops, and certification courses to individuals interested in enhancing their skills and
knowledge in the semiconductor field. These initiatives provide hands-on learning, industry
exposure, and mentorship opportunities to nurture talent and promote career growth.
Research institutions and academia play a crucial role in the India Semiconductor Mission.
They contribute through cutting-edge research, technology development, and talent
grooming. Collaborations between industry and academia are encouraged to foster
innovation, knowledge exchange, and collaborative projects that address industry challenges
and drive technological advancements.
To foster talent development in the semiconductor chip design, the Government has
launched several initiatives, as outlined below:
New curriculum by All India Council for Technical Education (AICTE) for VLSI Design
& Technology, Integrated Circuit (IC) manufacturing.
Developing 85,000 skilled manpower in semiconductor design sector & providing
EDA tools to design semiconductor chips.
45,000+ students from 100 institutions enrolled so far.
Skilled Manpower Advanced Research and Training (SMART) Lab at NIELIT Calicut to
train 1 lakh engineers nation-wide with 44,000+ engineers already trained.
Collaboration with industry and universities such as Lam Research, IBM and Purdue
University.
Leveraging the country's large talent pool, global semiconductor design companies are
now rapidly expanding their workforce in India to design cutting-edge chips.
Strategic Collaborations under ISM
Lam Research and IISc have signed a Memorandum of Understanding (MoU) to use
the Semiverse simulation platform to instruct 60,000 engineers over the next ten years.
Future Skills Program, an initiative taken by the government to train 20,000 engineers
in Madhya Pradesh.
Micron and IIT Roorkee have signed a MoU partnership to foster innovation and
develop a highly skilled workforce.
IBM: Partnership to provide Indian students and professionals access to advanced labs,
internships, and research centres, enhancing practical exposure and global industry
alignment.
Purdue University: MoU to foster cutting-edge R&D, talent curation, and
commercialization in semiconductors and display technologies, with a focus on
innovation-driven collaboration between academia and industry.
Mapping India’s Semiconductor Ecosystem
India’s semiconductor ecosystem is shaping itself from policy to production readiness, driven
by the India Semiconductor Mission with new fabrication, assembly, and design hubs taking
root across the country, molding India’s emerging chip landscape into a tangible shape.
Date Company Location Investment Output
Capacity
JUN 2023 Micron Technology Sanand, ₹22,516 ATMP Facility,
Gujarat crore with phased
ramp-up.
FEB2024 Tata Electronics (TEPL) in Dholera, ~₹91,000 50,000
partnership with Powerchip Gujarat crore wafers/month
Semiconductor
Manufacturing Corp (PSMC) of
Taiwan
FEB 2024 CG Power & Industrial Pvt Ltd Sanand, ~₹7,600 15 million
in partnership with Renesas Gujarat crore chips/day
& Stars
FEB 2024 Tata Semiconductor Assembly Morigaon, ₹27,000 48 million
and Test Pvt Ltd (TSAT) Assam crore chips/day
SEPT Kaynes Semicon Pvt Ltd Sanand, ₹3,307 crore 6.33 million
2024 Gujarat chips/day
MAY HCL-Foxconn JV Jewar, Uttar ₹3,700 crore 20,000
Pradesh wafers/month
2025
(36 M units/yr)
SEMICON India
As part of its efforts to position India as a global hub for semiconductor innovation and
manufacturing, the Government has launched the SEMICON India Programme with an
investment of ₹76,000 crore, implemented through the India Semiconductor Mission (ISM). A
key initiative under this vision is SEMICON India, a flagship event organised in partnership
with SEMI (Semiconductor Equipment and Materials International). The platform brings
together global industry leaders, policymakers, academia, and startups to foster investment,
dialogue, and strategic partnerships. SEMICON India plays a catalytic role in advancing ISM’s
goals by enabling cross-border collaborations, promoting research commercialization,
enhancing skill development, and showcasing India’s growing potential in the global
semiconductor value chain. Three editions of SEMICON India have been held so far, in 2022
(Bangalore), 2023(Gandhinagar), 2024 (Greater Noida) .
The 4th edition is to be held in Delhi from September 2-4th, 2025. Semicon India 2025 co-
hosted by India Semiconductor Mission (ISM) and SEMI will be held from September 2–4,
2025, at Yashobhoomi (IICC), New Delhi. It is set to display India’s redefining role in the
global semiconductor ecosystem. The three day event will bring together industry leaders,
innovators, academia, government and other stakeholders to drive collaboration and
technology advancements across the entire supply [Link] India 2025: Building the next
ohouse
The event would be of high interest for business and technology leaders, researchers, and
industry analysts from across the microelectronics supply chain, including managers,
equipment manufacturers, people working in design, scientists, engineers, college / graduate
students, technicians among many others.
A key high point of SEMICON India 2025 is the significantly higher level of
stakeholder participation compared to previous editions.
First-Ever Global Pavilions, Country Roundtables, Skilling Initiatives, and Design
Startup Pavilion to Witness Record Stakeholder Participation
Will host over 300 exhibiting companies from 18 countries and regions.
Some of the significant features of this event include :
Higher level of stakeholder participation : SEMICON India 2025 has significantly higher
level of stakeholder participation as compared to previous editions. With over 300
exhibitors from 18 countries, this edition underscores India’s emergence as a trusted,
innovation-driven semiconductor destination.
Four International Pavilions—For the first time ever, there will be four international
pavilions from Japan, South Korea, Singapore, and Malaysia in SEMICON India 2025
International Roundtables - Also debuting for the first time are eight Country
Roundtables. These exclusive, high level discussions will bring together industry leaders,
government officials and companies from India and key partner nations to exchange ideas
and foster bilateral collaboration.
Workforce Development Pavilion - Analysts have projected an industry requirement of
around one million additional skilled workers in the sector by 2030. To ensure a strong
pipeline of diverse pipeline of semiconductor professionals it is important to encourage
skilling and future-readiness, training, upskilling, for students and engineers. This pavilion
is being set up with the objective of providing career counselling to guide and mentor
young talent.
Semiconductor Design Startup Pavilion - The event will also feature a dedicated
Semiconductor Design Startup Pavilion, offering a platform for innovation-led chip design
enterprises. Additionally, nine State Government Pavilions will participate this year, up
from six in the previous edition.
Other special features in the event aimed at strengthening India’s talent pipeline and
ecosystem capabilities include the Startup Pavilion, B2B Forums.
Recent Developments
In May 2025, The Union Cabinet approved the establishment of one more
semiconductor unit under India Semiconductor Mission. The unit approved is a
joint venture of HCL and Foxconn. This plant will manufacture display driver
chips for mobile phones, laptops, automobiles, PCs, and myriads of other devices
that have display. The plant is designed for 20,000 wafers per month. The design
output capacity is 36 million units per month.
At the Global Investors Summit 2025, it was announced that India's first
indigenous semiconductor chip would be ready for production this year. Five
production units are under construction, signalling a significant milestone for
domestic capability.
To further strengthen the talent pipeline, the government has initiated a program
to train 85,000 engineers in advanced semiconductor and electronics
manufacturing.
Madhya Pradesh has made a significant stride in the IT and electronics sector with
the inauguration of its first IT campus, backed by an investment of ₹150 crore over
the next six years. Spanning 1 lakh square feet, the state-of-the-art facility is
designed to support end-to-end manufacturing of IT hardware and electronic
products under one roof. The plant will produce a wide range of components,
including servers, desktops, motherboards, chassis, RAM, SSDs, as well as
advanced technologies such as drones and robots. It will also manufacture desktop
computers, all-in-one workstations, laptops, tablets, and monitors. The project is
expected to generate employment for around 1,200 professionals, positioning the
state as a growing hub for electronics manufacturing in India.
In July 2025, Netrasemi, a startup supported under the government’s chip design
scheme, has received Venture Capital (VC) investment of ₹107 crore. The company
is working on making chips for smart vision, CCTV cameras, and Internet of
Things (IoT) applications.
Conclusion
India’s electronic industry is growing rapidly, with semiconductors at the heart of this
transformation. To meet rising demand and reduce import dependence, the government has
launched strategic initiatives like the India Semiconductor Mission, the SEMICON India
Programme, and global partnerships such as iCET. These efforts signal India’s shift from a
consumer to a key player in the global semiconductor value chain. As approved facilities
begin operations and new projects take shape, the country is positioning itself as a trusted
hub for semiconductor manufacturing, strengthening its digital economy, national security,
and technological self-reliance. From dependence to dominance, the chip revolution is real
and its happening right here, right now in Bharat.
References:
Make in India:
[Link]
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Ministry of Electronics & IT:
[Link]
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India Semiconductor Mission: [Link]
India Science and Technology Portal:
[Link]
semiconductor-mission-ism
Cabinet:
[Link]
[Link]
[Link]
Semicon India: [Link]
Prime Minister’s Office: [Link]
Taiwan And The Global Semiconductor Supply Chain: [Link]
[Link]/uploads/sites/86/2024/02/[Link]
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