New delhi: India will commence commercial semiconductor production by the end of 2025, as announced by Prime Minister Narendra Modi. He emphasized the potential of the nation to emerge as a “global hub” for chip innovation during the annual Semicon India conference.
According to Lao News Agency, Modi revealed that test chips from companies like Micron and Tata are already in production. He highlighted the rapid progress India is making in the semiconductor sector, stating that “commercial chip production will begin this year.”
India’s semiconductor market has seen significant growth, expanding from $38 billion in 2023 to an anticipated $45-$50 billion in 2024-2025. The government has set ambitious targets to reach $100-110 billion by 2030. Currently, the country is developing ten semiconductor projects, representing $18 billion in investments. These projects include two advanced 3-nanometre design facilities located in Noida and Bengaluru.
Modi expressed confidence in India’s capabilities, stating that despite starting late in the semiconductor race, the nation is now unstoppable. He highlighted India’s advantages in producing components for semiconductor equipment, supplying critical materials, and offering services ranging from research and development to artificial intelligence, big data, and cloud computing.
India also claims a significant “human capital” advantage, with Modi noting that “20 percent of the global talent in semiconductor design comes from India.” This announcement follows Japan’s pledge to increase investment in India to 10 trillion yen ($68 billion), which includes cooperation in semiconductors and artificial intelligence, during Modi’s recent visit to Tokyo.
As the world’s fifth-largest and fastest-growing major economy, India has been impacted by the economic challenges stemming from former US President Donald Trump’s tariffs. In response, the country is pursuing new growth opportunities. With the global demand for chips rising and supply chains concentrated in limited regions, India aims to build a “complete ecosystem” encompassing design, manufacturing, and packaging to become “self-reliant and globally competitive.”
Modi conveyed confidence in India’s potential, stating, “When the chips are down, you can bet on India,” according to a government briefing note on the industry.
