'Made-in-India' Chip to be Introduced by Sep/Oct: Vaishnaw

Nitin Konde, Varun Bhardwaj

17 Feb 2025 — 2 min read

‘Made-in-India’ Chip Set for Launch by Sep/Oct: Vaishnaw

By September or October of this year, Ashwini Vaishnaw, the minister of information technology, anticipates that the first "made-in-India" chip will be released from a commercial factory. The minister made the remarks during a media appearance in Bengaluru on February 15, according to various media reports. Notably, Tata Electronics is constructing a semiconductor facility in Dholera, Gujarat, in partnership with Powerchip Semiconductor Manufacturing Corporation (PSMC).

Nearly 60% of the building has already been finished at Micron's semiconductor assembly and testing facility in Sanand, the state. According to Vaishnaw, the Indian Institute of Science (IISc), Bengaluru, has received grants of INR 334 Cr from the Centre "for new research and development (R&D) in gallium nitride, a technology in semiconductors, which is used in telecom and power." Students at 234 institutions are receiving the "latest" semiconductor design tools, he added. Without going into detail, the minister also stated that the union government intends to launch a production-linked incentive (PLI) program for "components" shortly.

India’s Manufacturing Sector Attracting Investors

The nation has seen investments in the electronics manufacturing sector totalling INR 13,162 Cr in the "recent past," according to the IT minister, and many more are on the horizon. In response to a query from the media, Vaishnaw stated that the IT ministry is collaborating with industry participants to finish the initial version of the India Semiconductor Mission (ISM 1.0). The Centre intends to finish modernising the semiconductor lab in Mohali under the first edition.

Upon this, he stated that the ministry will start the process of sanctioning ISM 2.0 and that funding for the second iteration of the mission would be determined upon Cabinet approval. This occurs when the union government is making every effort to turn India into a semiconductor hub by providing incentives and sops to international companies looking to establish operations there.

Semicom India Programme

To encourage silicon semiconductor fabs, display fabs, compound semiconductors, and other industries, the Centre started the Semicon India program in 2021 with an investment of INR 76,000 Cr. Establishing greenfield semiconductor and display factories, enhancing R&D and design skills, and being able to compete with other Asian bases to lessen India's reliance on imports are some of the program's main goals. The objective of the program is to entice major international chip manufacturers to establish India as their production base.

India aspires to become a technology leader in these strategically important fields, which are also essential for safeguarding the nation's vital information infrastructure. The objectives also support the government's Atmanirbhar Bharat vision. ISM was also launched in 2022 as part of the Semicon India program. Investors are also following suit; domestic semiconductor firms raised $28 million in 2024 from just $5 million in 2023. The domestic semiconductor market is at the centre of all of this, and according to various published reports, it is expected to expand into a $150 billion potential by 2030.