Introduction
In today’s digital world, semiconductors are the new oil — powering everything from smartphones and cars to missiles and satellites. Yet, India, despite being a global IT giant, imports nearly all of its chips. To reverse this, the Government of India launched the Semicon India Programme in 2021 with a vision to develop a robust, indigenous semiconductor ecosystem.
Now, in 2025, the semiconductor mission has entered a critical phase. With key investments, global partnerships, and policy reforms in motion, India is attempting to secure its place on the global semiconductor map — not just as a consumer but as a serious manufacturer and innovator.
What is India’s Semiconductor Mission?
📘 Background
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Launched in December 2021 with an initial outlay of ₹76,000 crore, the India Semiconductor Mission (ISM) aims to:
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Establish fabrication units (fabs).
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Develop design and packaging capabilities.
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Create a pipeline of skilled semiconductor professionals.
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Attract global players to invest in India’s chip manufacturing.
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🏗️ Major Components
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Design Linked Incentive (DLI) Scheme – for startups and R&D in chip design.
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Modified Programme for Semiconductors and Display Fabs – financial support for setting up units.
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Chips to Startup (C2S) Programme – skilling future engineers in chip design and manufacturing.
Key Developments in 2025
🛠️ Tata’s Semiconductor Plant in Dholera
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The most promising development is Tata Electronics' ₹91,000 crore fab in Gujarat’s Dholera region.
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In collaboration with Powerchip (Taiwan), the plant aims to produce 28nm chips by 2026.
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This marks India’s first commercial fab, a turning point in self-reliance.
🌐 Micron’s ATMP Facility
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Micron Technology is setting up an Assembly, Testing, Marking and Packaging (ATMP) facility in Gujarat.
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It received ₹3,000 crore in incentives and is expected to become operational in 2025.
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This boosts India’s position in the backend chip ecosystem.
🤝 ISRO and Semiconductor Research
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ISRO and CDAC have signed a MoU for space-grade chip development, vital for satellites and defense.
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India is now exploring Gallium Nitride (GaN) tech for high-frequency, radiation-hardened chips.
Why is Semiconductor Manufacturing Crucial for India?
📱 Digital Economy and Industry 4.0
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India’s push for 5G/6G, IoT, electric vehicles, robotics, and AI relies on chip availability.
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Without domestic manufacturing, supply chains remain vulnerable to global disruptions like COVID or the Taiwan crisis.
🔐 National Security
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Chips are central to defense, missiles, satellites, surveillance, and encryption.
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Indigenous manufacturing reduces dependency on foreign hostile suppliers, especially amid tensions with China.
📊 Import Burden and Trade Imbalance
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India imports over $20 billion worth of semiconductors annually.
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Domestic production will reduce this import bill and support the rupee.
🏭 Job Creation and Skilling
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A mature semiconductor industry can generate 50,000+ direct jobs and countless indirect ones.
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India has already launched programs in IITs, NITs, and IIITs to train chip design professionals.
Challenges Still Faced in 2025
🔌 Infrastructure Bottlenecks
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Semiconductor fabs need uninterrupted power, purified water, clean rooms, and world-class logistics — still a challenge in India.
⏳ Long Gestation Period
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It takes 4–5 years and billions of dollars to build and operationalize a single fab.
🧠 Talent Gap
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India lacks experienced semiconductor engineers, process technologists, and packaging experts.
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Most current expertise lies in software, not hardware.
🌐 Global Supply Chain Complexity
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Even with fabs, India still depends on global supply chains for photolithography machines, rare earths, and IP.
India in the Global Semiconductor Race
🇺🇸 US and CHIPS Act
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The US passed a $52 billion CHIPS Act to regain its semiconductor dominance.
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American firms like Micron and AMD are entering Indian markets for packaging and R&D.
🇨🇳 China’s Chip Push
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China invested $150 billion in its chip sector, aiming for self-sufficiency by 2030.
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This adds strategic urgency for India to not fall behind.
🇹🇼 Taiwan Factor
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Taiwan’s TSMC leads global chip making but faces threats from China’s military ambitions.
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The world is diversifying chip manufacturing to India, Vietnam, and the US.
Government Initiatives and Future Vision
🔧 PLI Scheme for Semiconductors
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The Production Linked Incentive (PLI) is offering up to 50% fiscal support to manufacturers.
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Focus is also on compound semiconductors, photonic chips, and automotive-grade ICs.
🧠 Semicon India Conferences
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India hosts annual Semicon India events to attract investors and showcase talent.
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Global CEOs like Pat Gelsinger (Intel) and Sanjay Mehrotra (Micron) have participated.
🚀 Next Goals
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Establish at least two leading-edge fabs by 2028.
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Become a hub for chip packaging, testing, and exports.
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Train 85,000+ chip design engineers by 2030.
Conclusion
India’s semiconductor mission in 2025 is not just about chips — it's about technological sovereignty, economic resilience, and geopolitical strategy. With the right investments, policy stability, and global collaboration, India has the potential to emerge as a reliable alternative to China and Taiwan in the global chip supply chain.
However, the road ahead requires patience, persistent innovation, and sustained funding. If India succeeds, it could power its own digital future and help reshape global tech geopolitics in the years to come.