India’s First Semiconductor Chip to be ready by 2025; Top Companies Tata, Micron in the Race

Ashwini Vaishnaw, the union minister of information technology and electronics, stated on Wednesday that the first semiconductor chip made in India will be ready for manufacturing by 2025. He addressed the event online on the second day of the Madhya Pradesh Global Investor Summit 2025 in Bhopal.

India has achieved significant progress in the semiconductor manufacturing sector over the last three years, with the goal of becoming a leader in the area, according to Vaishnaw, as reported by news agency ANI. He was talking about the efforts made under the India Semiconductor Mission (ISM), which was launched in December 2021.

What is India Semiconductor Mission?

ISM encourages semiconductor producers to establish their operations and facilities in India. In addition to design-linked incentives, the mission's incentive package offers financial assistance to businesses who set up semiconductor manufacturing, display fabrication, compound semiconductor, semiconductor assembly, testing, marking, and packaging facilities.

Micron’s Plan for India’s Semiconductor Market

In June 2023, Micron announced its plan to build a semiconductor assembly and testing facility in Gujarat. This move aligns with India’s vision to strengthen its semiconductor manufacturing capabilities.

India’s First Semiconductor Fabrication Facility

In September 2024, Tata Electronics, in partnership with Taiwanese semiconductor giant PSMC, established India's first semiconductor fabrication facility. This plant is expected to produce up to 50,000 wafers per month, catering to industries such as:

• Wireless communication
• Computer and data storage
• Automotive sector

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Adani and L&T Expanding in the Semiconductor Industry

The Adani Group and Larsen & Toubro (L&T), two other significant Indian conglomerates, have also made headway in this market, highlighting the industry's increasing strategic significance in India's economic and national security agenda.

US-India Partnership on Semiconductor 

The US and Indian governments are working together under the US-India Initiative on Critical and Emerging Technology (iCET). This initiative focuses on advancements in:

• Artificial Intelligence (AI)
• Quantum Computing
• Semiconductors
• Wireless Telecommunications

In a recent X post, former Minister of State for Electronics and IT Rajeev Chandrasekhar reached out to Indian entrepreneurs, offering his willingness to coach and encourage those working in electronics, semiconductors, and deep artificial intelligence.