India is poised to witness the rollout of its first indigenous semiconductor chip “very soon,” announced Union Minister for Information and Technology Ashwini Vaishnaw on Sunday, highlighting the country’s strides towards self-reliance in high-tech manufacturing.
Addressing the ‘Next-Gen Mobility for a Next-Gen City’ programme, Vaishnaw announced, “Six semiconductor plants are currently under construction across Gujarat, Assam, and Uttar Pradesh. Very soon, we’ll see the first Made-in-India chip come out of these factories.”
The minister also underlined the government’s efforts to democratise access to Artificial Intelligence (AI) technologies, stating that the India AI Mission is designed to make cutting-edge tools available to all innovators.
“AI is shaping our world. Our Prime Minister’s vision is to make this technology accessible to everyone—not just a select few,” Vaishnaw said.
Under the mission, 34,000 Graphics Processing Units (GPUs) are currently available through a shared compute facility, making it the most affordable in the world—costing less than USD 1 per hour.
Prime Minister Narendra Modi, also speaking at the event, reiterated the government’s focus on technological self-sufficiency.
“Our next big priority is becoming self-reliant in technology. The journey toward a Viksit Bharat will move hand in hand with Digital India,” the Prime Minister said, adding that the India AI Mission positions the country for global leadership in AI.
He noted that the Semiconductor Mission is gathering pace and India will soon have its own chip, made entirely on domestic soil.
In May this year, the Union Cabinet approved India’s sixth semiconductor unit to be built in Jewar, Uttar Pradesh, near the upcoming international airport. The plant will be developed through a joint venture between HCL Group and Taiwan-based Foxconn.
The facility will have a monthly capacity of 20,000 wafers and is expected to produce up to 3.6 crore chips per month, generating around 2,000 jobs.
Among the other semiconductor units under development are in Gujarat, which hosts four units, including the Tata Electronics–PSMC fab, CG Power–Renesas–Stars Microelectronics ATMP unit, Micron Technology’s ATMP unit, and the Kaynes Semicon ATMP unit.
Assam is home to Tata’s Semiconductor Assembly and Test (TSAT) facility.
To bolster these initiatives, the government has launched the Rs 76,000-crore Semicon India Programme, aimed at creating a robust semiconductor and display manufacturing ecosystem.
Additionally, in June, the Centre amended Special Economic Zone (SEZ) rules to accommodate the unique requirements of semiconductor and electronics component manufacturing. These reforms are targeted at encouraging investment in this capital-intensive and import-reliant sector, which often requires long gestation periods before turning profitable.
Vaishnaw also highlighted India’s significant progress in electronics manufacturing, revealing that the country is now the top smartphone supplier to the United States, with domestic electronics production reaching Rs 12 lakh crore.
“Electronic production has grown sixfold in the past 11 years. Exports have increased eight times, reaching Rs 3 lakh crore. India is now the second-largest mobile phone manufacturer globally,” the minister said.
Back in 2014, India had just two mobile manufacturing units. Today, the number has surged to over 300, marking a dramatic shift in the country’s electronics landscape.
In 2014-15, only 26 per cent of mobile phones sold in India were manufactured locally; the rest were imported. As of FY24, a remarkable 99.2 per cent of mobile phones sold in India are now made domestically.
Reflecting this shift, the manufacturing value of mobile phones has skyrocketed from Rs 18,900 crore in FY14 to Rs 4,22,000 crore in FY24.
With continued government support, public-private partnerships, and a focus on innovation and infrastructure, India is fast-tracking its transformation into a global technology powerhouse.
