Made-in-India Chips: Fueling India’s Next Job Revolution

India is entering a defining moment in its industrial and technological journey with the government’s push for indigenous semiconductor production. Union Minister Ashwini Vaishnaw has called this effort the country’s “steel moment,” comparing the rise of semiconductor manufacturing to how the steel industry once transformed economies and created vast employment opportunities. The minister underlined that semiconductors are not just about powering phones and computers, but are embedded in everything from automobiles and railways to defense and space technologies. Their integration into everyday systems makes them one of the most critical industries for the future, and India is now preparing to become a major player in this space.

Union Minister Ashwini Vaishnaw. Reuters File | Firstpost

Building the Semiconductor Ecosystem

Since the launch of the Semiconductor Mission in 2022, India has been steadily laying the foundations of a robust ecosystem. Multiple fabrication units and chip packaging plants are already under construction across different states. Tata Electronics is setting up a major unit in Assam, while a joint venture between HCL and Foxconn near Jewar Airport in Uttar Pradesh has secured government approval with significant investment. In Gujarat, the CG Semi OSAT facility in Sanand, backed by Renesas and Stars Microelectronics, is preparing to produce India’s first “Made-in-India” chip from its pilot line. These developments demonstrate that India’s ambition is no longer confined to policy announcements but is translating into real infrastructure on the ground.

Indigenous Innovation on Display

One of the defining moments in India’s semiconductor journey came during the Semicon India 2025 event, where Minister Vaishnaw unveiled “Vikram,” the country’s first fully indigenous 32-bit microprocessor. Developed by ISRO’s Semiconductor Laboratory in Chandigarh, the chip has been designed for space-grade applications and marks a leap forward in India’s technological capabilities. Presenting this processor to Prime Minister Modi, Vaishnaw highlighted how India is no longer just a consumer of global technologies but is positioning itself as a producer of advanced hardware that can meet both domestic and international demands.

Global Partnerships and Strategic Confidence

India’s rise in the semiconductor sector is also attracting international attention. Global technology companies, including ASML, one of the world’s leading semiconductor equipment makers, have expressed strong interest in India’s growing ecosystem. This global confidence is seen as a vote of trust in India’s policies, workforce, and long-term potential. Furthermore, collaborations with countries like the United States, Japan, and France are expected to fast-track technology transfer, research partnerships, and workforce training. These alliances ensure that India’s semiconductor push is not isolated but integrated into the global value chain.

Job Creation and Economic Impact

Perhaps the most significant outcome of the semiconductor mission lies in its ability to generate large-scale employment. Every fabrication unit, packaging plant, and design hub has the potential to create thousands of direct jobs and several times more indirect opportunities in construction, logistics, design, and allied industries. Educational institutions across India are already introducing specialized courses in chip design and semiconductor engineering to ensure a steady supply of skilled professionals. Experts suggest that the sector could become one of the largest engines of job growth in the next decade, echoing Vaishnaw’s vision of a transformative moment for India’s economy.

The MGMM Outlook

India is witnessing a transformative phase in its industrial and technological landscape with a strong push for indigenous semiconductor production. Union Minister Ashwini Vaishnaw has likened this moment to the country’s “steel moment,” emphasizing the potential of semiconductors to drive widespread industrial growth and employment. From automobiles and defense systems to railways and space technologies, these chips are becoming an essential part of India’s infrastructure, making local production a strategic necessity. The establishment of fabrication units and packaging plants in Assam, Uttar Pradesh, and Gujarat reflects a concrete move from policy announcements to tangible industrial development, signaling India’s readiness to emerge as a major player in the global semiconductor ecosystem.

The unveiling of “Vikram,” India’s first fully indigenous 32-bit microprocessor, during Semicon India 2025, showcases the nation’s growing capabilities in advanced hardware design and innovation. Global companies like ASML and partnerships with countries such as the United States, Japan, and France highlight international confidence in India’s semiconductor ambitions. Beyond technological advancement, the sector promises large-scale job creation, spanning direct employment in manufacturing and design to indirect opportunities in allied industries. With educational institutions ramping up specialized courses, India is ensuring a skilled workforce to sustain this growth. These developments indicate that “Made-in-India” chips are set to not only reduce import dependence but also power industries, infrastructure, and the aspirations of millions of Indians.

(Sources: Firstpost, Moneycontrol, Financial Express)