India’s Semiconductor Leap: “Made-in-India” Chips to Hit the Market by End-2025

On Independence Day 2025, Prime Minister Narendra Modi delivered a defining message for India’s technological future. Speaking from the Red Fort, he declared that semiconductor chips manufactured entirely in India will be available in the market by the end of this year. This announcement is not just a milestone in the nation’s electronics journey but a symbol of India’s determination to stand among global leaders in advanced technology manufacturing.

The chips, once ready, are expected to power sectors ranging from consumer electronics and mobile devices to automobiles, defense equipment, renewable energy systems, and telecommunications infrastructure. By the close of 2025, India aims to take its first tangible step towards reducing dependence on global suppliers in this critical industry.

PM Modi also hailed the armed forces and the prowess of Made-in-India weapons during Operation Sindoor in his 103-minute-long address – his longest ever from the ramparts of the Red Fort.(HT Photo/Raj K Raj) | Hindustan Times

From Stalled Ambition to Mission Mode

India’s pursuit of a domestic semiconductor industry is not new. The journey began more than five decades ago, yet for much of that time progress was hampered by bureaucratic delays, stalled files, and missed opportunities. As the Prime Minister put it, the vision was left to “ataak, latak aur bhatak”—stuck, dangling, and wandering aimlessly.

Today, that narrative is shifting dramatically. The government has adopted a “mission mode” approach to accelerate the sector’s development. Six semiconductor units are already under construction, and four new projects were recently approved. Together, these ten projects are distributed strategically across Gujarat, Odisha, Assam, Uttar Pradesh, Andhra Pradesh, and Punjab. While most of the early output will focus on assembly, packaging, and testing, it marks the first phase of what the government sees as a long-term industrial transformation.

Strengthening the India Semiconductor Mission

The India Semiconductor Mission (ISM) has become the central platform for driving this technological leap. On August 12, 2025, the Union Cabinet approved four new semiconductor units—two in Odisha, one in Andhra Pradesh, and one in Punjab—with a combined investment of ₹4,594 crore. This approval brings total sanctioned investments under ISM to approximately ₹1.6 lakh crore across six states.

Beyond manufacturing, the mission is designed to cultivate a complete semiconductor ecosystem—integrating research and development, skill-building, and supply chain resilience. The ambition is clear: India wants to become a self-sufficient semiconductor hub while also playing an influential role in the global supply chain.

Scaling Production with Advanced Fabrication Capacity

A major highlight of the government’s plan is the establishment of a commercial-scale silicon fabrication unit with a monthly capacity of 50,000 wafer starts. This is a significant scale-up compared to the global industry norm of 20,000–40,000 wafers per month. The project is intended not only to meet domestic demand but also to position India as a credible exporter of semiconductor components.

Industry leaders are already taking note. Ashok Chandak, President of IESA and SEMI India, has described semiconductors as a “core pillar of India’s growth story,” pointing to the more than $22 billion worth of projects currently underway.

Global Partnerships and Regional Growth

India’s chip ambitions are also attracting international participation. Technology giants like Intel and aerospace leader Lockheed Martin are investing in India’s semiconductor sector. On the domestic front, Tata Group’s semiconductor assembly and testing facility in Assam is emerging as a flagship project in the Northeast, aiming to begin operations in mid-2025 and create thousands of jobs.

Legacy institutions such as the Semi-Conductor Laboratory (SCL) in Mohali are undergoing modernization, supported by leading academic partners including IIT Bombay and IIT Madras. These institutions are playing a key role in research and design, ensuring that India’s semiconductor journey is backed by strong intellectual and engineering capabilities.

A Pillar of the Atmanirbhar Bharat Vision

The semiconductor initiative is part of a broader Atmanirbhar Bharat (self-reliant India) strategy that encompasses multiple sectors. Alongside the chip manufacturing push, PM Modi used his Independence Day address to highlight reforms in taxation, defense readiness, and energy independence. He emphasized that self-reliance must come from a position of strength, innovation, and global competitiveness—not isolation.

Conclusion: The First Step in a Long Journey

The rollout of the first “Made-in-India” chip by the end of 2025 will be a symbolic but crucial achievement. While these initial products will likely be packaged chips rather than fully fabricated ones, they mark the beginning of India’s entry into an industry long dominated by countries like Taiwan, South Korea, and the United States.

If the current momentum is sustained—with government commitment, private investment, global partnerships, and a skilled workforce—India has the potential not only to meet its own semiconductor needs but also to become an influential player in the global market. For a country that once saw its chip dreams trapped in bureaucratic files, the transformation to mission mode may well define the next chapter of its industrial and technological story.

(Sources: Hindustan Times, Times of India, Economic Times)