India is rapidly emerging as a prime destination for semiconductor manufacturing, a message underscored by Prime Minister Narendra Modi in his recent address to global CEOs. Speaking at the Semicon India 2025 conference in New Delhi, Modi highlighted the country's commitment to becoming a global hub for semiconductor innovation and manufacturing, citing the confidence expressed by industry leaders in India's potential.

The Prime Minister's remarks come at a time when India's semiconductor market is experiencing significant growth. Valued at US$38 billion in 2023, it is projected to reach between US$45-50 billion in 2024-25, with ambitious targets of US$100-110 billion by 2030. This rapid expansion is attracting substantial investments and fostering strategic partnerships with global semiconductor companies.

The Indian government is actively supporting the development of the semiconductor industry through various initiatives and incentives. The Production Linked Incentive (PLI) scheme, with an allocation of ₹76,000 crore (US$9.1 billion), has already committed nearly ₹65,000 crore to approved projects. This financial support aims to encourage investments in semiconductor fabrication, display manufacturing, and chip design, strengthening India's integration into global electronics value chains.

As of August 2025, India has approved ten semiconductor projects across six states, representing a cumulative investment commitment of approximately INR 1.60 trillion (US$18.23 billion). These projects include partnerships with major global players such as Micron Technology and Tata Electronics. Micron Technology is investing ₹22,516 crore in a facility in Sanand, Gujarat, while Tata Electronics has partnered with Taiwan's Powerchip Semiconductor Manufacturing Corp, investing ₹91,000 crore to establish a semiconductor fabrication plant in Dholera's Special Investment Region.

In addition to manufacturing, India is also focusing on developing its semiconductor design capabilities. The Design Linked Incentive (DLI) scheme has sanctioned 23 chip design projects, supporting both startups and established companies in creating indigenous solutions. The government inaugurated advanced 3-nanometer chip design facilities in Noida and Bengaluru in May 2025, positioning India among the few countries capable of working at the most advanced technology nodes.

To further boost the semiconductor ecosystem, the Indian government is also focusing on workforce development. Over 60,000 students have already benefited from semiconductor training programs, preparing a new generation of engineers and designers for the industry. The "Chips to Startup" program aims to train 85,000 engineers in VLSI and embedded system design over five years with ₹1,000 crore investment.

India's semiconductor ambitions are taking concrete shape, with the first domestically produced semiconductor chip expected to reach the market by the end of 2025. Union Minister for Electronics and IT, Ashwini Vaishnaw, stated that this chip will utilize 28 to 90 nanometre technology. Furthermore, CG Power's Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, is expected to roll out the country's first commercial "Made in India" chips.

At the Semicon India 2025 event, Vaishnaw presented Prime Minister 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. This achievement demonstrates the country's growing design and manufacturing capabilities.

The government is also considering extending incentives for critical semiconductor projects, potentially covering up to 70% of project costs through central and state support. Electronics and IT Secretary S Krishnan announced plans to broaden the Design Linked Incentive (DLI) scheme to include larger domestic companies and increase grant amounts.

With strong government support, increasing investments, and a growing talent pool, India is well-positioned to become a major player in the global semiconductor industry. As Prime Minister Modi stated, the world trusts India and is ready to partner in building its semiconductor future. The country's focus on innovation, manufacturing, and skill development is paving the way for a self-reliant and globally competitive semiconductor ecosystem.