Prime Minister Narendra Modi, in his address on the 79th Independence Day, declared that India is poised to launch its first indigenously manufactured semiconductor chip by the end of the year. This announcement underscores the government's commitment to bolstering domestic production and technological self-reliance.
Modi emphasized that the 21st century is driven by technology, and nations that excel in this domain will achieve significant success. He highlighted that the government is working in "mission mode" to advance the semiconductor sector, with "Made-in-India" chips expected to enter the market by the close of 2025.
The push for semiconductor manufacturing aligns with the broader "Make in India" and "Atmanirbhar Bharat" (self-reliant India) initiatives. This ambition aims to position India as a competitive force in the $600 billion global semiconductor market. The India Semiconductor Mission (ISM), launched in 2021, provides financial incentives and policy support to attract both global and domestic manufacturers.
PM Modi pointed out that the concept of semiconductor manufacturing in India was discussed decades ago but never came to fruition. He stated that his government has cleared these long-standing obstacles and is now aggressively pursuing the semiconductor agenda. Currently, six semiconductor units are operational, and four more have been given the green light.
The Union Cabinet recently approved four new semiconductor projects under the ISM, with a combined investment of ₹4,594 crore. These projects include facilities in Bhubaneswar, Odisha; Punjab; and Andhra Pradesh. This brings the total number of projects under ISM to ten, representing a cumulative investment of approximately ₹1.60 lakh crore across six states. These projects are expected to generate employment for over 2,000 skilled professionals.
The firms behind the newly approved projects are SiCSem, Continental Device India Private Limited (CDIL), 3D Glass Solutions Inc., and Advanced System in Package (ASIP) Technologies. SiCSem, in collaboration with UK-based Clas-SiC Wafer Fab Ltd., will establish India's first commercial compound semiconductor fabrication facility focused on Silicon Carbide (SiC) devices in Info Valley, Bhubaneswar. Continental Device India will expand its existing facility in Mohali, Punjab. 3D Glass Solutions Inc. will set up a vertically integrated advanced packaging and embedded glass substrate unit in Bhubaneswar. ASIP Technologies will establish a semiconductor unit in Andhra Pradesh.
These projects join other ISM-backed initiatives in Gujarat, Karnataka and Tamil Nadu. Key projects already underway include the Tata-PSMC fabrication unit in Dholera, Gujarat; the Micron ATMP facility in Sanand, Gujarat; Tata TSAT's OSAT unit in Jagiroad, Assam; Kaynes' OSAT facility in Sanand, Gujarat; and the HCL-Foxconn joint venture in Uttar Pradesh.
India's semiconductor market is projected to more than double, reaching $100-110 billion by 2030. The Indian semiconductor market was approximately $45-50 billion in 2024-2025, compared to $38 billion in 2023.
