India’s ambition to become a global semiconductor powerhouse has been steadily evolving, beginning with the Make in India initiative of 2014 and culminating in the Semiconductor Mission (ISM) launched in 2021. With strong government support, multi-billion-dollar investments, and rising global partnerships, India is now positioning itself as a serious contender in the global chip race.

The journey from Make in India to Semiconductor Mission

The Make in India initiative marked the beginning of a new phase for domestic electronics and manufacturing. It was followed by a series of targeted schemes designed to build the semiconductor ecosystem from scratch:

• Electronics Manufacturing Clusters (EMC) Scheme: Developed infrastructure for electronics manufacturing across key industrial hubs.

• Production-Linked Incentive (PLI) Scheme: With ₹76,000 crore allocated, this program incentivized semiconductor and electronics manufacturers to set up units in India.

• India Semiconductor Mission (ISM): Launched in 2021, ISM became the guiding framework to attract investments, develop R&D, and build fabs and OSAT units.

• Design Linked Incentive (DLI) Scheme: Encouraged chip design startups and supported the development of intellectual property in the semiconductor space.

Why semiconductors matter to India

Semiconductors are the backbone of modern technology. From smartphones and electric vehicles to medical equipment, defense systems, and satellites, chips are at the core of digital innovation. The global chip shortage during the COVID-19 pandemic and the Russia-Ukraine war exposed how vulnerable global supply chains had become when concentrated in a few regions.

For India, building a semiconductor ecosystem is no longer just about technology; it is about economic security, national resilience, and strategic independence.

India’s rapid progress since 2021

In just over three years since ISM’s launch, India has made remarkable progress:

• ₹65,000 crore has already been committed under the ₹76,000 crore PLI scheme.

• Ten major semiconductor projects have been approved across six states.

• A state-of-the-art OSAT (Outsourced Semiconductor Assembly and Test) facility has been launched in Sanand, Gujarat, which will deliver India’s first chip soon.

• Over 23 chip design projects have been approved under the DLI scheme.

• In May 2025, India inaugurated its first 3nm chip design facilities in Bengaluru and Noida, signaling ambitions to lead in advanced design technologies.

Workforce and skill development

A crucial element of India’s semiconductor journey is talent creation. The government and industry are working on multiple fronts:

• A Workforce Development Pavilion was launched to attract students and professionals to chip technology.

• SEMI University now offers over 800 on-demand courses in chip design, manufacturing, and technology trends.

• India aims to create a talent pool of 1 million skilled semiconductor professionals by 2030.

Sustainability and resilience in focus

As the world transitions to sustainable technologies, India is embedding green practices into its semiconductor mission:

• Emphasis on water and resource efficiency in fabs.

• Adoption of circular economy principles to minimize waste.

• Building climate-resilient supply chains to withstand geopolitical and environmental disruptions.

Global collaborations and investments

India’s semiconductor ecosystem has started attracting top global players. Companies like AMD, Micron, Foxconn, and Cadence have announced major investments. Partnerships with global leaders ensure technology transfer, supply chain diversification, and R&D collaboration.

The unveiling of the first Made in India semiconductor chip at SEMICON India 2025 was a major symbolic and strategic milestone.

The challenges ahead

Despite strong progress, India faces challenges in becoming a true global leader:

• China’s growing chip industry remains a major competitor. Recently, the US lifted restrictions on EDA (Electronic Design Automation) software exports to Chinese firms, accelerating China’s R&D growth.

• India still depends on foreign EDA tools, critical for chip design. Developing domestic alternatives and nurturing startups in this space is essential.

• Speeding up IP creation, R&D, and design innovation will be necessary to reduce reliance on imports.

Conclusion: Is India ready to lead the chip race?

India’s journey from a chip-consuming nation to a chip-producing and designing ecosystem has been extraordinary. The SEMICON India 2025 summit and the unveiling of the first indigenous chip mark only the beginning.

With policy support, global partnerships, skill development, and innovation, India has laid a strong foundation to emerge as a semiconductor hub. However, the road ahead requires addressing challenges in R&D, EDA independence, and global competition.

If India sustains its current momentum, the country is well on its way to becoming not just a participant, but a global leader in the semiconductor race by 2030.

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