India is set to achieve a significant milestone in its semiconductor journey with the launch of its first ‘Made-in-India’ chip in 2025, as announced by Union Minister of Railways, Information & Broadcasting, Electronics and IT, Mr. Ashwini Vaishnaw. Originally scheduled for December 2024, the launch has been brought forward, demonstrating India's commitment to advancing its semiconductor industry.

Speaking at the World Economic Forum (WEF) in Davos, Mr. Vaishnaw expressed confidence in the progress of India’s semiconductor program, citing strong support from industry stakeholders. He acknowledged the need for further advancements in purity levels of semiconductor materials, which will be crucial for meeting global standards. The Indian government and private industry are working in close coordination to transform the semiconductor manufacturing process, ensuring that India can become a global player in this crucial sector.

Government Support and Foreign Investments Fuel Semiconductor Growth
India's semiconductor ambitions were significantly bolstered by the Semicon India program approved in December 2021, with a total outlay of Rs. 76,000 crore (US$ 8.79 billion). This program aims to establish a robust semiconductor and display manufacturing ecosystem in India, supporting both domestic needs and international demand.

In addition to the government's proactive measures, India is attracting substantial foreign investments in the semiconductor sector. For instance, NXP Semiconductors, a leading global semiconductor company, has committed to investing over Rs. 8,644 crore (US$ 1 billion) in Research and Development (R&D) in India. Furthermore, Micron Technology has announced plans to set up a Rs. 23,771 crore (US$ 2.75 billion) assembly and testing plant in Gujarat, further strengthening India’s position in the semiconductor industry.

India’s Semiconductor Market on Track for Major Growth
India's semiconductor market is poised for significant growth. According to a Reuters report, the country’s semiconductor market is expected to reach Rs. 5,44,572 crore (US$ 63 billion) by 2026. This growth will be driven by government initiatives, increasing demand for semiconductor chips across industries, and expanding investment in manufacturing and R&D.

With global technology companies and domestic manufacturers both contributing to the development of the semiconductor ecosystem, India is on the path to becoming a key player in the global semiconductor market.

India’s progress in the semiconductor sector is expected to have transformative effects on various industries, from electronics and automotive to consumer goods and telecommunications. By advancing its semiconductor manufacturing capabilities, India aims to reduce reliance on imports, create high-value jobs, and boost the country’s technological prowess on the global stage.

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