Introduction
Imagine a world where India is no longer dependent on other countries for the tiny yet powerful ships that run our smartphones, cars, defiance systems and even our space missions.
Well, that future is closer than you think. In 2025, India is set to roll out its first indigenous semiconductor chip, which is going to be a game changer in the global tech race.
And yes, I said 2025, that means this year. But why is this so crucial? And why are countries literally fighting over chips? This is Shubhangi Sharma for CNN News 18.
The world is in the middle of a semiconductor wall. The United States and China are leading this high-stakes game with each trying to outmaneuver the other.
Chips are the backbone of modern technology from AI to defiance systems and the country that controls chip manufacturing controls the future.
And here’s the problem. India is heavily dependent on imports for semiconductors.
Nearly all our high-end chips come from Taiwan, South Korea, China or the United States. That makes us wonderful.
What happens if geopolitical tensions escalate, and our supplies get cut off?
Our growing electronics, automotive and defiance industries could come to a halt.
India’s goal: a local semiconductor ecosystem encompassing design, fabrication, and manufacturing.
The Modi government has put chip manufacturing on the front burner.
Union Minister Ashwani Wajna recently announced that India’s first home-grown semiconductor chip will be unveiled this year.
This is a big milestone, but it didn’t happen overnight.
In 2022, the Indian government launched a 10-billion-dollar incentive program to attract chip makers.
The goal is to build a full-fledged semiconductor industry from scratch.
The government introduced a semiconductor-specific policy, partnered with top global firms and pushed for investment in research and development.
Three new semiconductor plans are being built
Two in Gujarat and one in Assam, with the Tata Group leading the charge.
Microne technology, a US-based semiconductor giant, is setting up massive $2.75 billion dollar plant in Sanat.
Now, you might be wondering, why go through all this effort?
Can’t we just keep importing the chips? Well, no. Every sector today from consumer electronics to automotive to defense depends on semiconductors.
Without them, our economy simply won’t function.
The pandemic gave us a wake-up call. Remember when coal manufacturing slowed down worldwide, that was due to a chip shortage.
So, to truly be earth man oeuvre, we need to manufacture chips ourselves.
This is why the government in recent years has pushed for this industry to be set up.
The global semiconductor market is worth over $600 billion.
And India is set to become a $103 billion dollar player by 2030 if all goes right. Here’s the good news.
India’s Ambitious Plan to Become a Semiconductor Manufacturing Hub
India already has a strong semiconductor design ecosystem. Companies like TCS, Wipro and HCL have been designing chips for decades. What we lack is fabrication producing the chips.
Big players like Bharat Fort are also entering the market, targeting niche semiconductor segments for automotive and defense.
India is in looking to compete directly with Taiwan or the US. Instead, we’re focusing on specific markets where we can make an impact.
To woo global chip makers, the Indian government has gone all in with a massive $10 billion dollar production link incentive scheme.
That’s 76,000 crore rupees.
This is making it clear that India is ready to be a serious player in the semiconductor space.
This scheme was launched in 2021 and was the first ever national push for this strategically important industry.
But the incentives don’t stop here. Tax breaks, policy tweaks, and major regulatory reforms are also on the table.
In fact, a big-ticket proposal expected in the upcoming budget is a presumptive tax scheme under section 44 designed to make India.
An even more attractive destination for foreign semiconductor giants looking to set up shop and the results are already showing.
India’s Semiconductor Push: Fourfold Rise in Global Participation and Ambitious Goals
Global participation in India’s semiconductor events have increased fourfold.
International players are betting big on India’s semiconductor future.
This semiconductor push can fuel India’s entire electronics manufacturing industry.
Recently, electronics exports had a record high of $3.58 billion in December 2024, which was a 35% jump from the year prior.
And mobile phones are leading the charge. Apple, for example, has doubled its production in India in just one year.
By 2025, that is this year, 25% of iPhones will be made here. And for the first time ever, India made iPhones were available globally within days of their launch.
That’s a huge milestone for making India.
India aims to achieve in 10 years what China did in three decades.
It’s an ambitious goal, but we’re moving fast. With policy support, industry collaboration and strategic investments, India could soon become a global semiconductor powerhouse.
India compete with the likes of Taiwan, South Korea and the US?
That remains to be seen. One thing is clear though, that this is just the beginning.