First ‘Made in India’ semiconductor chips set for 2025 launch: PM Modi
Prime Minister Narendra Modi announced on Friday that India’s first domestically manufactured semiconductor chips will enter the market by the end of this year. The declaration, made during his Independence Day address from the Red Fort, is being seen as a milestone in the country’s push towards technological self-reliance.
“By the end of this year, made in India, made by the people of India, made in India chips will come to the market,” Modi said, addressing the nation on the 79th Independence Day. He also underscored India’s parallel efforts to build its own artificial intelligence ecosystem. “We want to have our own AI ecosystem,” the Prime Minister added.
Semiconductor expansion and new approvals
The government has been ramping up its semiconductor manufacturing capacity under the India Semiconductor Mission (ISM). Six plants are operational, and four more were cleared earlier this week. Together, these projects entail investments of ₹4,594 crore across Odisha, Andhra Pradesh, and Punjab.
Among the latest approvals is a 3D glass semiconductor packaging unit by 3D Glass Solutions Inc., backed by Intel, Lockheed Martin, and Applied Materials, with an investment of ₹1,943 crore. The facility will have the capacity to produce five crore units annually.
Also sanctioned is India’s first commercial silicon carbide semiconductor fabrication unit by SiCsem in Bhubaneswar, with a planned investment of ₹2,066 crore and a capacity of 9.6 crore chips per year. In Andhra Pradesh, Advanced System in Package Technologies will set up a packaging plant worth ₹468 crore, also capable of producing 9.6 crore chips annually. Additionally, electronics firm CDIL has received approval to establish a ₹117 crore facility in Punjab, which will produce 15.8 crore units annually.
With these additions, India’s tally of approved semiconductor plants has risen to 10, with combined investment commitments nearing ₹1.6 lakh crore. Advanced projects already underway include a proposed ₹91,000 crore semiconductor wafer manufacturing unit by Tata Electronics (TEPL) in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC).
Historical context and renewed momentum
Modi reflected on India’s long-delayed semiconductor journey, noting that the idea of chip production surfaced half a century ago but never materialised. “My dear youth, you will be surprised to know that today, the semiconductor, which has become the strength of the world, 50-60 years ago, that thought process, those files, got stuck. They got stuck. The thought process of the semiconductor itself was foeticide 50-60 years ago. It lost 50-60 years. After us, many countries, in semiconductors, today, have mastered the technology and consolidated their power,” he said.
The first known effort dates back to the late 1960s, when American physicist and entrepreneur Robert Noyce — who later co-founded Intel — explored setting up a plant in India. That attempt did not take off.
Market outlook
According to industry estimates, India’s semiconductor market was valued at about $45-50 billion in 2024-25, up from $38 billion in 2023. The sector is projected to more than double to $100-110 billion by 2030.
Critical minerals mission
Alongside semiconductors, Modi announced the launch of the National Critical Minerals Mission (NCMM), aimed at securing essential minerals for energy, defence, and high-tech industries. “Today, the entire world has become alert about critical minerals, and people have come to fully understand their strategic importance,” the Prime Minister said.
Approved in January with a budget of ₹16,300 crore, the NCMM involves exploration at more than 1,200 sites across the country, backed by an additional ₹18,000 crore in planned investment from Public Sector Undertakings. To strengthen supply chains, India is also pursuing partnerships for rare earth imports, domestic mining, and refining technologies.
Kamran Rizvi from the Ministry of Heavy Industry said that ₹1,345 crore has been allocated to support the production of rare earth magnets, providing end-to-end incentives to convert rare earth oxides into magnets.
By linking semiconductor manufacturing with critical mineral security, India is attempting to break past bottlenecks and secure its place in global technology supply chains. The government’s strategy emphasises not only domestic capacity but also resilience against supply shocks in crucial sectors shaping the future.
