When Will India Launch Its First Made-in-India Semiconductor Chip?

On Wednesday, Union Minister Ashwini Vaishnaw announced on the sidelines of the World Economic Forum in Davos that the first "Made in India" chip would be introduced this year. Interestingly, Vaishnaw stated at the Davos conference in January of last year that the chip would be launched in December 2024.

Speaking on the sidelines of the World Economic Forum, Vaishnaw stated that industry participants have demonstrated a strong level of trust in India's semiconductor initiative.

India Prepares for 'Made in India' Chip Launch

India is gearing up for its first domestically manufactured semiconductor chip, set to debut this year, according to the Minister of Electronics and Information Technology. He emphasized the need for significant advancements in material purity and manufacturing processes to achieve this milestone.

Advancing Material Purity Standards

The Minister highlighted that raising material purity levels from parts per million to parts per billion is crucial for semiconductor manufacturing. This will require transformative changes in manufacturing processes, which the sector is actively working to achieve.

Semicon India Initiative

Prime Minister Narendra Modi approved the Semicon India initiative in December 2021, allocating Rs 76,000 crore to boost India's semiconductor and display manufacturing industries. The initiative aims to provide financial support to businesses investing in semiconductor design, display production, and ecosystem development.

ALSO READ: 16.13 Million Flew in 2024, SpiceJet Had Highest Cancellations: DGCA

ALSO READ: Which Indian Start-Up is Partnering with Google to Tackle CO2 Emissions?

Establishment of the India Semiconductor Mission (ISM)

The government has also launched the India Semiconductor Mission (ISM) as a dedicated business unit under the Digital India Corporation. This unit operates with administrative and financial autonomy to develop long-term strategies for:

• Expanding India's semiconductor design ecosystem.
• Enhancing display production capabilities.
• Establishing semiconductor manufacturing facilities.

Foreign Investments in India's Semiconductor Industry

India is attracting significant foreign investments to support its semiconductor ambitions:

• NXP Semiconductors plans to invest over $1 billion to double its R&D efforts in India.
• Analog Devices is collaborating with the Tata Group to explore semiconductor manufacturing opportunities.
• Micron Technology is setting up a $2.75 billion manufacturing and testing facility in Gujarat, expected to create 5,000 direct and 15,000 community jobs.

Indian Semiconductor Market Outlook

According to a Reuters analysis, the Indian semiconductor market is projected to grow to $63 billion by 2026, underlining the potential of the sector and India's role as a global semiconductor hub.