Over the next decade, as our semiconductors mature and scale, India will steadily emerge as a competitive hub for the entire value chain
By Ashwini Vaishnaw
Union Minister for Electronics and Information Technology
In the early days, computers were massive machines that occupied entire rooms. These machines operated using thousands of vacuum tubes that functioned as on-off switches. They looked more like telephone exchanges than the sleek devices we use today.
Fast forward to today, and far more computing power is packed into a chip smaller than a fingernail, powered by billions of transistors. These chips run mobile phones, cars, trains, refrigerators, televisions, factory machines, aircraft, and even space-guiding satellites. They are now so small they can fit into a smart ring and monitor your heart’s health. This is the magic of semiconductors.
For a nation to advance, it must master the key sectors that shape its development. These foundational sectors include steel, energy, telecommunications, chemicals, transportation, and semiconductors. There are hidden engines inside nearly everything we use – smartphones, cars, trains, medical devices, defense systems, power grids, satellites, and artificial intelligence.
Just as steel is the foundation for building factories, bridges, and railways, semiconductors are the foundation of the digital economy. Without chips, there is no modern communication, no data processing, no AI, no renewable energy systems, and no secure defense. A nation that cannot design and manufacture semiconductors risks dependency on others for even the most basic needs – from healthcare to security. A strong semiconductor manufacturing capability is more than an industry – it is about shaping our own future.
The pandemic was a stark reminder of the critical importance of chips. As global chip supply chains faltered, production across various industries was disrupted. Sectors like automotive, networking, and consumer electronics were particularly affected.
Semiconductors are now at the heart of global geopolitics. Since chip production is concentrated in only a few regions, even minor disruptions can have global ripple effects. A power outage in one area or an accident at a factory in another can halt supply chains, slowing industries and impacting economies and security worldwide.
The recent focus on rare earth magnets is a sharp reminder of how control over critical resources can shape global power. Similarly, semiconductors have become essential resources in the digital age.
The demand for semiconductors is only set to grow. Our personal consumption and production of electronics are expanding at an unprecedented pace. Today, India has over 650 million smartphone users, and our electronics manufacturing sector is reaching ₹12 trillion annually.
At the same time, we are developing AI-based systems, data centers, and electric vehicles, all of which require semiconductor chips. This surge in both demand and innovation makes it imperative for Bharat (India) to secure its position in the global semiconductor value chain.
For decades, India was told it had “missed the bus” when it came to semiconductors. That statement no longer holds true.
Under the India Semiconductor Mission, 10 semiconductor fabrication units have been approved. Construction is progressing rapidly. Today, we can confidently say that the first “Made in India” chip will roll out this year. A trial production line is already operational in Sanand, and within a year, four more units are expected to begin production. Global leaders such as Applied Materials, Lam Research, Merck, and Linde are investing in supporting factories and supply chains. This ecosystem approach reflects Prime Minister Narendra Modi’s long-term focus on industrial growth in Bharat.
The combination of factors behind this remarkable success in such a short time includes a clear vision from our Prime Minister, execution-focused leadership, decision-making by professionals, global collaboration, and strong state government support. India is no longer waiting at the bus stop of history – we are driving the future. Our design capabilities and talent base play a critical role in this journey.
Policy and investment are key to unlocking Bharat’s true advantage – its people. India currently accounts for over 20% of the global semiconductor design workforce. According to industry estimates, the world will face a shortage of over one million semiconductor professionals by the next decade. India is preparing to fill that gap. More than 60,000 users across 350 institutions and startups are using world-class Electronic Design Automation (EDA) tools provided free of charge by the Government of India. In 2025 alone, usage of these tools surpassed 12 million hours.
Startups are bringing energy to the chip design ecosystem with strong government support. Mindgrove Technologies is developing IoT chips based on the domestically built SHAKTI processor from IIT Madras. Netrasemi, another startup, recently secured ₹1.07 billion in funding – one of the largest venture capital infusions in India’s semiconductor design space, reflecting growing investor confidence in the sector. Many such startups are nurtured under the government’s Design-Linked Incentive (DLI) scheme.
At the Semiconductor Laboratory (SCL) in Mohali, student teams from 17 institutions have already designed 20 chips, with more expected in the coming months.
This kind of talent development will position Bharat strongly in the semiconductor industry. SCL is also undergoing modernization to align with the dreams of young innovators, ensuring that India’s talent can move from the classroom to the cleanroom.
Global leaders are also investing in India’s talent. Lam Research will train 60,000 engineers in India. Applied Materials, AMD, and Microchip are investing $1.1 billion in R&D. Partnerships with institutions like IISc and IITs ensure a strong pipeline from research to manufacturing. India is also collaborating closely with partners from the U.S., Japan, the EU, and Singapore to build future-ready talent. This blend of local talent and global collaboration ensures that Bharat is building not just for itself, but for the world.
India’s semiconductor journey is part of Prime Minister Modi’s larger vision. It begins with Digital India – a mission to build digital infrastructure and empower citizens. India Stack, UPI, Aadhaar, and our telecom networks bring technology to every Indian’s fingertips. In parallel, we’ve empowered our electronics manufacturing ecosystem. Now, we are building the ecosystem for semiconductor manufacturing, components, and equipment.
The India Semiconductor Summit 2025, inaugurated by the Prime Minister, marks the next chapter of this journey. This year, over 500 global industry leaders from 48 countries are attending – compared to around 100 last year. The world is coming to our doorstep because a stable Bharat is a beacon of hope in uncertain times. Dedicated pavilions from Japan, South Korea, Singapore, and Malaysia are fostering deep collaborations.
Our goal is to make India a “product nation.” Manufacturing from our semiconductor fabs will serve key sectors such as telecommunications, automotive, data centers, consumer electronics, and industrial electronics – supporting not only India, but the world.
Over the next decade, as our semiconductors mature and scale, India will steadily emerge as a competitive hub for the entire value chain.