India’s first Made in India semiconductor chip to be produced by 2025
Team Finance Saathi
27/Feb/2025

What's covered under the Article:
- India’s first Made in India semiconductor chip will be produced by 2025 to boost electronics manufacturing.
- Five semiconductor units are under construction, with a national plan to train 85,000 engineers.
- India's electronics sector has reached Rs. 10,00,000 crore, with Rs. 2,50,000 crore worth of exports.
In a historic step for India's technology sector, the country’s first Made in India semiconductor chip is set to begin production by 2025, marking a major milestone in the nation’s journey towards self-reliance in semiconductor manufacturing. Union Minister of Electronics and Information Technology, Mr. Ashwini Vaishnaw, made the announcement at the Global Investors Summit 2025 in Bhopal, Madhya Pradesh, highlighting India's rapid growth in the electronics sector and its commitment to developing a robust semiconductor ecosystem.
Under the leadership of Prime Minister Mr. Narendra Modi, Madhya Pradesh has emerged as a key electronics manufacturing hub, with two approved clusters in Bhopal and Jabalpur. Currently, 85 companies are engaged in electronics production in the state, contributing significantly to the sector’s expansion. The government is also taking proactive steps to build a skilled workforce, training 20,000 engineers under the Future Skills Programme in Madhya Pradesh alone.
India’s Expanding Electronics Manufacturing Sector
Over the past decade, India's electronics sector has experienced remarkable growth, reaching a valuation of Rs. 10,00,000 crore (US$ 114.43 billion). The country has also witnessed a substantial increase in electronics exports, totaling Rs. 2,50,000 crore (US$ 28.61 billion) across various segments:
- Mobile phones: Rs. 4,00,000 crore (US$ 45.77 billion)
- Laptops, servers, and telecom equipment: Rs. 75,000 crore (US$ 8.58 billion)
- Defense and medical electronics: A growing contributor to India's technology exports
The ‘Made in India’ semiconductor initiative aligns with the government’s vision of self-reliance in critical technology sectors and will play a crucial role in strengthening India’s electronics supply chain.
Boosting Semiconductor Manufacturing in India
The Indian government has launched multiple initiatives to accelerate the growth of semiconductor manufacturing. Five semiconductor fabrication units (fabs) are currently under construction, aimed at reducing dependence on imports and bolstering India’s semiconductor ecosystem.
Additionally, a national semiconductor training initiative is set to train 85,000 engineers in advanced semiconductor and electronics manufacturing, ensuring India has the skilled workforce required for next-generation technology advancements.
Government Initiatives Driving Growth
The government’s commitment to Viksit Bharat 2047 is focused on four key areas:
- Infrastructure Investment: Strengthening India’s industrial and technological base with high-impact projects.
- Inclusive Growth: Creating job opportunities and ensuring equitable development across regions.
- Manufacturing Expansion: Promoting domestic semiconductor and electronics production to establish India as a global technology hub.
- Legal Simplification: Streamlining regulations to encourage investments and ease of doing business.
These efforts aim to position India as a leader in global semiconductor manufacturing, ensuring a secure, self-reliant, and future-ready technology landscape.
Madhya Pradesh’s Role in India’s Electronics Revolution
Madhya Pradesh has seen significant infrastructure and industrial development, becoming a key location for electronics and semiconductor manufacturing. Renewable energy projects, including agreements between Indian Railways and the state government, are being implemented to support sustainable growth.
By fostering investment, innovation, and workforce development, India is well on its way to becoming a global electronics and semiconductor powerhouse. With the upcoming first Made in India semiconductor chip, the country is taking a historic step toward technological independence and industrial excellence.
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