Context:

Semiconductors form the foundation of the modern digital economy. They power everything from mobile phones and laptops to electric vehicles, defence systems, satellites, and medical equipment. Without semiconductors, digitalization, automation, and artificial intelligence would remain only on paper. Recognising this, India has moved decisively over the past few years to establish itself as a reliable and innovative player in the global semiconductor value chain.

• • The launch of the India Semiconductor Mission (ISM) in 2021 and the announcement of a ₹76,000 crore incentive package marked the beginning of India’s formal entry into the global semiconductor ecosystem. In just four years, India has moved from being largely a consumer of chips to developing its own indigenous designs, packaging facilities, and manufacturing capabilities. The recent SEMICON India 2025 conference showcased these achievements and highlighted India’s ambition to become a global semiconductor powerhouse.

India Semiconductor Mission (ISM):

The India Semiconductor Mission (ISM) is the nodal agency responsible for implementing semiconductor and display-related schemes in the country. It aims to position India as a global hub for semiconductor design, manufacturing, and innovation by:

• • Establishing fabrication plants (fabs), packaging, and testing units.
  • Supporting start-ups in chip design.
  • Developing a trusted supply chain of raw materials, chemicals, gases, and equipment.
  • Promoting indigenous intellectual property generation.
  • Building a skilled workforce and Centres of Excellence.
  • Facilitating partnerships with global companies, research institutions, and universities.

So far, India has approved 10 semiconductor projects across six states with investments worth ₹1.6 lakh crore. These projects cover commercial silicon carbide fabs, advanced packaging facilities, and outsourced assembly and testing plants (OSAT).

Financial Incentives and Policy Push:

To support semiconductor manufacturing and design, the government has created two major incentive schemes:

1.       Production Linked Incentive (PLI) Scheme

o    Allocated ₹76,000 crore.

o    Nearly ₹65,000 crore has already been committed.

o    Designed to attract global investors and ensure economies of scale.

2.      Design Linked Incentive (DLI) Scheme

o    Provides financial support to semiconductor start-ups and innovators.

o    So far, 23 chip design projects have been sanctioned.

o    Companies like VerveSemi Microelectronics are designing advanced chips for aerospace, defence, and EVs.

This twin approach ensures India is not just assembling chips but is also creating indigenous designs for global markets.

Major Milestones in India’s Semiconductor Journey

1. Launch of Indigenous Microprocessor – Vikram

At the SEMICON India 2025 conference, Union IT Minister Ashwini Vaishnaw unveiled Vikram, India’s first fully indigenous 32-bit microprocessor. This achievement demonstrates India’s ability to design chips critical for sectors like defence, healthcare, and communication.

2. Outsourced Semiconductor Assembly and Test (OSAT) Facilities

On 28 August 2025, India inaugurated its first end-to-end OSAT pilot line facility at Sanand, Gujarat, developed by CG Semi. This facility will play a crucial role in chip assembly, testing, and packaging. The plant is expected to roll out the first ‘Made in India’ chip in 2026.

3. Advanced Semiconductor Design Centres

In May 2025, India launched its first 3-nanometer chip design facilities in Noida and Bengaluru. These centres mark a leap from earlier 5nm and 7nm designs, placing India at the cutting edge of chip design globally.

4. Global Collaborations and Investments

• • • Micron Technology is investing ₹22,500 crore in an ATMP facility in Gujarat.
    • Tata Electronics and Taiwan’s PSMC are investing around ₹91,000 crore in a fab at Dholera.
    • Foxconn, AMD, Renesas, and Applied Materials have also announced investments in India.

Strategic Significance of Semiconductors

Semiconductors are not just an economic resource; they are a strategic asset. Global supply chain disruptions during the Covid-19 pandemic and the Ukraine war highlighted the risks of dependence on a few geographies like Taiwan, which produces 60% of the world’s chips and 90% of advanced chips.

What Are Semiconductors?

A semiconductor is a substance that has electrical conductivity between that of a conductor (like copper) and an insulator (like glass). Its conductivity can be controlled by adding impurities (a process called doping), by temperature, or by electric fields.

They allow precise control of current, making them perfect for transistors and integrated circuits.

• • Common materials: Silicon (most widely used), Gallium Nitride (GaN), and Silicon Carbide (SiC).

Think of a chip as a miniature city, with billions of tiny switches called transistors working together. The smaller and denser these transistors get (measured in nanometers — 7nm, 5nm, 3nm), the more powerful and efficient the chip becomes.

Types of Semiconductor Chips:

1.       Logic Chips – CPUs, GPUs, microcontrollers that perform calculations and run applications.

2.      Memory Chips – DRAM, SRAM, NAND flash that store data.

3.      Analog Chips – Convert real-world signals (sound, temperature, pressure) into digital signals.

4.     Discrete Devices – Simple power and radio-frequency components.

For India, semiconductors mean:

• • Economic Security: Supporting industries like electronics, automobiles, telecom, and energy.
  • Strategic Autonomy: Reducing dependence on imports for defence and space technologies.
  • Technological Leadership: Becoming part of global value chains in AI, big data, and IoT.
  • Job Creation: Generating thousands of high-skilled employment opportunities.

India’s Strengths in the Semiconductor Ecosystem:

India’s progress is supported by three strong pillars:

1.       Materials: India is rich in minerals, gases, and chemicals essential for chipmaking.

2.      Equipment and MSMEs: A strong MSME base can produce components for semiconductor equipment.

3.      Services and Talent: India has a global edge in IT, AI, and cloud computing, and a vast pool of engineering talent.

This combination allows India to integrate across the design, manufacturing, and services segments of the global semiconductor chain.

Transition to Next-Generation Technologies:

India is not limiting itself to traditional silicon chips. It is:

• • Moving towards silicon carbide (SiC) semiconductors, which withstand higher heat and voltage, crucial for defence, EVs, and space.
  • Exploring 3D glass packaging technology, which improves efficiency and performance.
  • Establishing facilities for advanced packaging and compound semiconductors, placing India on par with global leaders.

Skill Development and Academia-Industry Linkages:

Over 60,000 students have already benefited from semiconductor-focused training programs. The ISM has tied up with academic institutions for:

• • Certification and hands-on training.
  • Mentorship for start-ups.
  • Centres of Excellence for cutting-edge research.

These measures aim to build a diverse, future-ready workforce to meet the industry’s demand for one million additional skilled workers by 2030.

Conclusion:

India’s semiconductor journey has moved from vision to execution in record time. With policy support, massive investments, indigenous design capabilities, and global collaborations, the country is laying the foundation of a self-reliant and globally competitive semiconductor ecosystem. SEMICON India 2025 captures this spirit of ambition and progress. India is no longer just a market for chips, it is emerging as a producer, innovator, and strategic partner in shaping the future of global technology. By focusing on design, packaging, fabrication, skill development, and sustainability, India is preparing to stand shoulder-to-shoulder with global leaders. The next decade will be decisive. If current momentum continues, India could transform from being dependent on global supply chains to becoming a critical pillar of them—powering industries, ensuring economic security, and shaping the world’s digital future.