India has achieved a ground breaking milestone in its journey toward technological self-reliance, with Union IT Minister Ashwini Vaishnaw describing it as a “dream come true” as the country prepares to roll out its first indigenously manufactured semiconductor chips. This historic achievement represents the culmination of decades of strategic planning and persistent efforts by the Modi government to establish India as a major player in the global semiconductor ecosystem.
The Foundation of India’s Semiconductor Success
The transformation of India’s semiconductor landscape can be traced back to December 2021, when the Modi government launched the ambitious India Semiconductor Mission (ISM) with an unprecedented allocation of ₹76,000 crore (approximately $10 billion). This comprehensive program was designed to create a complete semiconductor ecosystem in India, spanning from chip design to manufacturing, assembly, testing, and packaging. The initiative represents one of the most generous semiconductor incentive packages globally, offering 50% fiscal support from the central government along with additional 20-25% support from state governments for approved projects.
Under this visionary framework, the government approved the Semicon India Programme, which encompasses four critical schemes: semiconductor fabrication facilities, display manufacturing units, compound semiconductor and ATMP (Assembly, Testing, Marking and Packaging) facilities, and design-linked incentives for start-ups and domestic companies. The comprehensive approach ensures that India develops capabilities across the entire value chain rather than focusing on just one segment of the semiconductor industry.
Manufacturing Momentum: From Vision To Reality
The success of India’s semiconductor mission is exemplified by the six major manufacturing facilities currently under construction across different states. The flagship project is Tata Electronics’ semiconductor fabrication facility in Dholera, Gujarat, developed in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC). This ₹91,000 crore ($11 billion) investment represents India’s first commercial-scale semiconductor fab, with a production capacity of 50,000 wafers per month. The facility will manufacture chips ranging from 28nm to 90nm technology nodes, addressing critical markets in automotive, computing, telecommunications, and artificial intelligence applications.
Another significant milestone is Micron Technology’s assembly and test facility in Sanand, Gujarat, which represents a $2.75 billion investment and is expected to become operational by December 2025. This facility will be the world’s largest backend semiconductor unit, focusing on transforming wafers into integrated circuit packages, memory modules, and solid-state drives. The project is creating approximately 5,000 direct jobs and 15,000 indirect employment opportunities.
Timeline For Commercial Production
Minister Vaishnaw has provided specific timelines for India’s semiconductor production milestones. The first Made-in-India chip is expected to be unveiled between September and October 2025, marking a historic moment for the country’s technological capabilities. This achievement represents not just a manufacturing milestone but a strategic victory in India’s quest for technological sovereignty. The initial production will focus on 28nm to 90nm technology nodes, which are extensively used in automotive systems, telecommunications equipment, power management circuits, and industrial applications.
The TATA facility in Dholera is projected to begin sample chip production by late 2025, with full commercial production ramping up through 2026. This timeline aligns with the government’s broader vision of establishing India as one of the top five global semiconductor manufacturing nations within the next decade.
Strategic Partnerships And Technology Transfer
The success of India’s semiconductor mission is built on carefully crafted international partnerships that ensure technology transfer and knowledge sharing. Beyond the Tata-PSMC collaboration, the government has fostered relationships with leading global semiconductor companies including Applied Materials, Lam Research, and various Japanese and Israeli technology firms. These partnerships are crucial for bridging India’s knowledge gap and ensuring that domestic facilities operate at international standards.
The India AI Mission complements the semiconductor initiative by providing access to 34,000 GPUs for research and development at subsidised rates of less than $1 per hour, making advanced computing resources accessible to start-ups, researchers, and academic institutions. This integrated approach ensures that India develops both the hardware manufacturing capabilities and the ecosystem to utilise these technologies effectively.
Infrastructure Development And Ecosystem Building
Recognising that semiconductor manufacturing requires comprehensive infrastructure support, the government has coordinated with state administrations to develop specialised industrial parks with semiconductor-grade utilities. The Dholera Special Investment Region exemplifies this approach, with the Gujarat government constructing 1,500 residential units specifically for Tata Group employees and their ecosystem partners. This includes essential amenities such as schools, hospitals, fire stations, and desalination plants, creating a self-contained semiconductor manufacturing hub.
The government has also established semiconductor design centres with advanced 3-nanometre chip design capabilities in Noida and Bangalore, marking India’s entry into next-generation semiconductor innovation. These facilities provide domestic companies and start-ups with access to cutting-edge electronic design automation tools, with over 270 colleges and 70 start-ups already benefiting from these resources.
Global Recognition And Strategic Positioning
India’s semiconductor achievements have garnered significant international recognition. The country has been designated as Vice Chair of the Indo-Pacific Economic Framework’s Supply Chain Council and is a key partner in the QUAD Semiconductor Supply Chain Initiative. These positions reflect global confidence in India’s emerging capabilities and its potential to serve as a reliable partner in diversifying semiconductor supply chains.
Prime Minister Modi’s declaration that “every device in the world will have an Indian-made chip” represents not just an ambitious goal but a strategic vision for positioning India as an indispensable player in the global technology ecosystem. The government’s approach of offering 70-75% combined incentive support through central and state governments has successfully attracted global investment while ensuring that India develops indigenous capabilities rather than merely serving as an assembly location.
Future Expansion And Vision 2047
The current semiconductor projects represent just the beginning of India’s ambitious plans. Tata Electronics has announced intentions to build two additional fabrication plants in Gujarat over the next five to seven years, potentially tripling the country’s semiconductor manufacturing capacity. The government is already preparing a “SEMICON 2.0” policy framework that will further streamline processes and attract equipment manufacturers, material suppliers, and specialised component producers to establish operations in India.
Looking toward 2047, when India aims to become a developed nation, the semiconductor industry is positioned as a cornerstone of technological self-reliance. The government’s target of training 85,000 semiconductor professionals across various skill levels ensures that India will
have the human capital necessary to sustain and expand its semiconductor ecosystem. This workforce development initiative spans from technicians and engineers to research and development specialists, creating a comprehensive talent pipeline.
Addressing Global Supply Chain Vulnerabilities
India’s semiconductor initiative gains particular significance in the context of global supply chain disruptions experienced during the COVID-19 pandemic and ongoing geopolitical tensions. The country’s entry into semiconductor manufacturing provides critical diversification for global technology companies seeking to reduce their dependence on concentrated manufacturing bases in East Asia. This strategic positioning not only serves India’s domestic needs but also establishes the country as a trusted partner for international semiconductor supply chains.
The government’s emphasis on developing capabilities in mature node technologies (28nm to 90nm) addresses a significant market segment that represents approximately 50% of global semiconductor demand. These technologies are essential for automotive electronics, industrial automation, telecommunications infrastructure, and consumer electronics – sectors where demand continues to grow robustly.
Conclusion: A Historic Transformation
Ashwini Vaishnaw’s characterisation of India’s semiconductor achievement as a “dream come true” reflects the magnitude of this transformation. From being entirely dependent on imports for semiconductor needs, India is poised to become a significant contributor to global chip
supply within the next few years. The combination of strategic government policies, substantial financial incentives, international partnerships, and comprehensive ecosystem development has created the foundation for sustainable growth in this critical technology sector.
The success of India’s semiconductor mission extends beyond mere manufacturing capabilities – it represents a fundamental shift in the country’s technological sovereignty and economic positioning. As the first Made-in-India chips roll off production lines in 2025, they will symbolise not just technological achievement but the realisation of India’s aspirations for self-reliance in critical technologies. This transformation positions India to play a pivotal role in shaping the global semiconductor landscape for decades to come, truly making the “dream come true” for a nation that has long aspired to be a technology leader rather than merely a consumer.
IDN (With Inputs From ANI)
