In the era where microchips fuel everything — from smartphones and electric vehicles to AI systems and defense tech — India is pushing hard to become a global semiconductor manufacturing hub.
The goal: Reduce dependence on imports, boost local innovation, and create millions of high-tech jobs.
But the road is complex and riddled with challenges.
The Current Landscape: What’s Happening?
- First Made-in-India Semiconductor by 2025
Union IT Minister Ashwini Vaishnaw recently said,“By December 2025, India will roll out its first indigenous chip using the 28nm process technology.”
- Massive Investments on the Ground
- Tata Group: ₹91,000 crore investment for two facilities — a chip fabrication plant in Dholera, Gujarat and an OSAT (Outsourced Semiconductor Assembly and Test) unit in Assam.
- L&T Semiconductor Technologies: Plans a $10 billion fabrication unit by 2027.
- Lam Research (US): Over $1 billion committed to set up a semiconductor equipment training center in Karnataka.
- Micron Technology (US): Building a $2.75 billion ATMP (assembly, testing, marking, packaging) plant in Gujarat.
- Strategic International Ties
- India-USA tech ties strengthened via the iCET (Initiative on Critical and Emerging Technology).
- Talks with Japan, Taiwan, and the EU for tech and equipment collaborations.
Key Numbers and Targets
India currently holds less than 1% of the global semiconductor market share but aims to capture 10% by 2030. Under the ambitious Semicon India Program, the government has committed an investment of $10 billion (approximately ₹76,000 crore), with plans for full disbursement by 2026. This initiative is also expected to generate around 200,000 direct jobs and 600,000 indirect jobs by the end of the decade. Additionally, India’s domestic semiconductor market is projected to grow significantly, reaching a size of $63 billion by 2026, according to estimates by the India Electronics and Semiconductor Association (IESA).
What’s Being Built?
- Tata-Powerchip Fab at Dholera:
- Target: 28nm and above node manufacturing.
- Capacity: Up to 20,000 wafer starts per month (WSPM).
- Micron’s Gujarat Facility:
- Focus: Advanced semiconductor packaging — crucial for cutting-edge devices.
- Shakti Semiconductor Fab (Defense Focused):
- Backed by the US Department of Defense for sensitive electronics components.
Quotes That Matter
“India is not just assembling electronics now — it is aiming to produce the brain of electronics: the chip itself.”
— Ashwini Vaishnaw, Union IT Minister
“A resilient India-centric semiconductor supply chain is essential for global tech security.”
— Gina Raimondo, US Commerce Secretary
“Building fabs is not just about money; it’s about ecosystems — skilled engineers, design houses, raw material suppliers, and reliable infrastructure.”
— Vinod Dham, “Father of the Pentium Chip”
Challenges on the Horizon
- Capital Intensive Industry:
- Building a fab costs upwards of $5-10 billion and takes 3-5 years.
- Technology Catch-up:
- India’s first fabs will produce 28nm chips, while global leaders like TSMC and Intel are moving to 2nm technology.
- Skilled Workforce Shortage:
- India needs 100,000+ highly skilled semiconductor engineers over the next 5 years.
- Global Competition:
- Heavy competition from Vietnam, Malaysia, Mexico, and even the US & EU (who are also heavily subsidizing chipmaking).
- Infrastructure Bottlenecks:
- Reliable electricity, water supply, and logistics are mandatory — and gaps still exist.
Why India Could Still Succeed
- Huge Domestic Demand:
Electronics, EVs, telecom, and defense sectors in India are booming — creating in-built demand. - Geopolitical Opportunity:
Global tech players want to diversify away from China and Taiwan due to geopolitical risks. - Government Push:
Heavy subsidies (up to 50% of fab costs), fast-track clearances, and PLI schemes are serious incentives. - Partnership Approach:
India isn’t going solo — it’s smartly tying up with global players (US, Japan, Taiwan, South Korea).
Final Analysis: Can India Really Pull It Off?
Yes — but only partially in the short term.
India’s realistic goal by 2030 is to:
- Master mature-node manufacturing (28nm, 65nm) first.
- Become a global leader in chip packaging and assembly.
- Build strong chip design capabilities (where India already has companies like Qualcomm, Intel, and AMD operating design centers).
Advanced, cutting-edge chip manufacturing (below 7nm) will likely take another decade and much more experience, investment, and innovation.
Conclusion: A Marathon, Not a Sprint
India’s semiconductor dream is no longer just talk.
Huge investments, global collaborations, and clear government support are real and happening.
However, it’s a long journey — requiring sustained focus, heavy funding, global partnerships, and relentless ecosystem building.
As Minister Ashwini Vaishnaw aptly put it,
“We are at the beginning of a journey that will define India’s tech future for the next 50 years.”
