India's First Indigenous Chip to Be Launched This Year India's push into semiconductor manufacturing began with the approval of the Semicon India programme in December 2021 and backed by an allocation of INR 76,000 crore
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India's first locally manufactured semiconductor chip is set to be rolled out in 2025, Union Minister for Electronics and Information Technology Ashwini Vaishnaw announced during the World Economic Forum in Davos.
Vaishnaw noted that industry stakeholders have shown confidence in the country's semiconductor programme, which now aims to involve equipment manufacturers, material suppliers, and chip designers. He also highlighted the need to advance material purity levels from parts per million to parts per billion, describing this as a transformative challenge for the industry.
India's push into semiconductor manufacturing began with the approval of the Semicon India programme in December 2021. Backed by an allocation of INR 76,000 crore, the programme was designed to support the development of semiconductor and display manufacturing capabilities. The initiative also led to the creation of the India Semiconductor Mission, an autonomous division under Digital India Corporation tasked with overseeing the country's long-term semiconductor strategies.
Several global companies have announced investments in India's semiconductor sector. NXP Semiconductors plans to invest over USD 1 billion to expand R&D operations, while Micron Technology is establishing a USD 2.75 billion assembly and testing facility in Gujarat. Analog Devices is collaborating with the Tata Group to explore local manufacturing options.
India's semiconductor market is forecast to reach USD 63 billion by 2026. While these developments suggest significant growth potential, challenges remain in building a comprehensive ecosystem capable of supporting advanced manufacturing and innovation.
