Current Affairs

SEMICON India 2025: Made in India Chips Lead the Semiconductor Revolution

Author: VisionIAS Editorial Team

Sep 3, 2025Current Affairs10 min read

SEMICON India 2025: Made in India Chips Lead the Semiconductor Revolution

India’s semiconductor journey reached a historic milestone with the first Made-in-India chip presented to the Prime Minister of India.

India’s journey toward technological self-reliance reached a milestone at ‘Semicon India 2025’ when the nation’s first Made in India chips were presented, including the Vikram 32-bit processor, developed by ISRO’s Semiconductor Laboratory.

Developed by the Vikram Sarabhai Space Centre (VSSC) in collaboration with ISRO’s Semiconductor Laboratory (SCL), Chandigarh, this fully indigenous 32-bit microprocessor is specifically qualified for space missions and designed to withstand the extreme conditions of rocket launches and space environments. It also has potential applications in defence systems, aerospace technologies, advanced automotive solutions, and high-reliability energy systems.

The processor is an advanced successor to the VIKRAM1601, which has been powering ISRO’s launch vehicles since 2009, marking a crucial evolution in India’s space-grade computing capabilities. This momentous achievement was showcased at India’s largest semiconductor event, SEMICON India 2025. Featuring over 350 exhibiting companies from 33 countries it marks the fourth edition of this premier industry gathering.

SEMICON India 2025

SEMICON India 2025, jointly organized by the India Semiconductor Mission (ISM) under the Ministry of Electronics and Information Technology and SEMI, the global semiconductor industry association, served as the perfect platform to demonstrate India’s transformation from a semiconductor consumer to a manufacturing hub.

The event’s theme “Building the Next Semiconductor Powerhouse” perfectly encapsulates this transition, which aligns with the Atmanirbhar Bharat vision and represents a crucial step toward reducing dependence on imports while strengthening India’s position in the global semiconductor industry.

India’s Current Semiconductor Landscape

Growth Potential: The consumption market is expected to grow at a compound annual growth rate (CAGR) of 13% through 2030, driven by increasing digitalization across sectors.

High import dependence: India’s semiconductor manufacturing industry is still in its early stages and heavily relies on other countries like Taiwan, China, and South Korea for semiconductor chips. This dependence creates vulnerabilities in supply chains and limits technological autonomy.

India’s growth as a manufacturing hub: India’s first end-to-end Outsourced Semiconductor Assembly and Test (OSAT) Pilot Line Facilities in Sanand, Gujarat was launched in August, 2025. Semiconductor company CG-Semi, is expected to roll out the first ‘Made in India’ chip from this pilot facility.

Government Initiatives and Strategic Programs

India Semiconductor Mission (ISM)

The India Semiconductor Mission aims to establish a global semiconductor and display ecosystem, positioning India as a hub for electronics manufacturing and design. It collaborates with central and state governments to provide infrastructure, utilities, and regulatory support for projects across multiple states, demonstrating India’s commitment to building indigenous semiconductor capabilities.

The India Semiconductor Mission (ISM), launched in December 2021 with ₹76,000 crore, serves as the nodal agency under the Ministry of Electronics and Information Technology. This comprehensive mission framework operates through two key schemes that have driven India’s rapid progress in semiconductor manufacturing:

Production Linked Incentive (PLI) Scheme: Offers up to 50% fiscal support for manufacturing projects, enabling large-scale semiconductor fabrication and assembly facilities across the country.

Design Linked Incentive (DLI) Scheme: Focuses on chip design capabilities and intellectual property development, with 23 chip design projects already sanctioned to support startups and innovators.

International Collaborations

Partnerships with global firms include collaborations with companies like Micron and Foxconn to establish manufacturing units in India. These partnerships provide technology access, market knowledge, and international credibility.

The Ministry of Electronics and Information Technology has signed agreements with the U.S. National Science Foundation for joint research in semiconductor technology, cybersecurity, and sustainable technologies.

Economic Impact and Strategic Significance

Investment and Employment Generation

The approved semiconductor projects involve cumulative investment exceeding ₹1.6 lakh crore, creating employment opportunities across manufacturing, design, and support services.

The sector is expected to generate over one million additional skilled jobs by 2030, contributing to India’s economic growth and technological capabilities.

Export Potential and Trade Balance

Made in India chips will serve both domestic markets and global customers, with export potential contributing to improved trade balances. The focus on specific applications like automotive, defense, and telecommunications creates targeted market opportunities.

India’s positioning as a trusted partner in democratic supply chains provides advantages in serving markets concerned about supply chain security and reliability.

Technology Innovation and R&D

Indigenous Design Capabilities: The Vikram 32-bit processor demonstrates India’s capability to design high-reliability semiconductors for space and defense applications. The chip’s successful fabrication at SCL’s Mohali facility proves indigenous manufacturing competency.

Academic and Industry Partnerships: Collaborations between academic institutions like IIT Madras, IISc Bangalore, and industry partners foster innovation in processor design, IoT chipsets, and specialized applications.

Focus on Emerging Technologies: India is targeting Silicon Carbide (SiC) semiconductors through the country’s first commercial SiC fab in Bhubaneswar, Odisha. SiC technology is critical for electric vehicles, renewable energy systems, and power electronics applications. This strategic positioning allows India to compete in emerging markets without directly challenging established players in mature silicon technologies.

Addressing Industry Challenges

Capital Requirements and Investment

The semiconductor industry is capital-intensive, with setting up a semiconductor fab requiring over $10 billion. India addresses this through substantial government incentives and international partnerships to share costs and risks.

Independent studies indicate that semiconductor production in India is 15-30% more cost-competitive compared to global benchmarks, providing natural advantages for manufacturing investments.

Workforce Development

India faces a lack of skilled workforce in semiconductor design, fabrication, and testing. The “Chips to Startup” program aims to train 85,000 engineers in VLSI and embedded system design over five years with ₹1,000 crore investment.

The country leverages its existing strength of hosting 20% of the world’s chip design engineers, with major technology companies operating R&D centers in Indian cities.

Supply Chain Localization

Dependence on raw material imports remains a challenge, with India importing over 80% of critical materials like silicon wafers and specialized chemicals. ISM 2.0 will focus on attracting component manufacturers and raw material suppliers to create deeper localization.

The National Critical Mineral Mission works to secure domestic sources of rare earth elements and specialized materials required for semiconductor manufacturing.

Future Roadmap and Strategic Vision

ISM 2.0 and Expanded Scope

The second phase of the India Semiconductor Mission will broaden support across the entire semiconductor value chain, including fabs, OSAT units, capital equipment, and materials manufacturing.

This comprehensive approach addresses current supply chain dependencies and builds resilient domestic capabilities for long-term growth.

Global Market Positioning

With the global semiconductor market approaching $1 trillion by 2030, India’s comprehensive strategy positions the nation to capture significant market share through Made in India chips.

The combination of cost advantages, talent availability, and government support creates competitive positioning for both domestic consumption and export markets.

Technology Leadership Goals

India aims to move beyond basic manufacturing toward innovation leadership in emerging technologies like quantum computing, artificial intelligence processors, and clean energy semiconductors.

The Deep Tech Alliance, as announced in SEMICON India 2025, with a $1 billion commitment will drive semiconductor development across clean energy, quantum technologies, and frontier sectors.

Conclusion

The development of Made in India chips represents India’s transformation from semiconductor consumer to global manufacturing hub. Through strategic policy frameworks, substantial financial commitments, and leveraging existing talent advantages, India has moved from vision to production reality.

The Vikram3201 processor and ongoing manufacturing projects demonstrate tangible progress in building indigenous capabilities. As India addresses challenges in capital requirements, workforce development, and supply chain localization, the foundation for sustained growth in Made in India chips continues to strengthen.

This semiconductor revolution positions India for technological sovereignty and economic prosperity, reducing import dependence while capturing opportunities in the expanding global market. With semiconductor chips being seen as ‘digital diamond,’ the success of Made in India chips will define India’s technological leadership for decades to come.