Startup Originals Team
India is gearing up to launch its first-ever homegrown semiconductor chip by December 2025, marking a transformative step for the country’s technological self-reliance. The milestone was confirmed by Jitin Prasada, Minister of State for Electronics and Information Technology, as part of India’s accelerated push under the Semicon India programme.
Milestone for ‘Made in India’ Semiconductors:
- The first packaged “Made in India” chip is expected to roll out before the end of 2025, positioning India amongst the world’s semiconductor-producing nations.
- This move comes as a result of the government’s ₹76,000 crore Semicon India initiative aimed at creating a robust semiconductor and display manufacturing ecosystem across the country.
Key Features of India’s Chip Initiative:
Massive Investment & Project Scope:
- The government has approved 10 major semiconductor manufacturing projects, amounting to over ₹1.6 lakh crore in investments, spread across six states: Gujarat, Assam, Uttar Pradesh, Punjab, Odisha, and Andhra Pradesh.
- These projects are expected to collectively generate over 29,000 direct jobs, depending on levels of factory automation.
Broad Fiscal Support:
- Under Semicon India, the government is offering up to 50% fiscal support for establishing silicon-based fabs, display fabs, compound semiconductors, silicon photonics, sensors, and ATMP (Assembly, Testing, Marking, Packaging) units.
- Additional incentives are available for semiconductor design, chip testing, and deep-tech startups through a Design Linked Incentive (DLI) Scheme worth ₹1,000 crore.
Global Collaborations and Skills Development:
- India has inked MoUs with countries such as the US, EU, Japan, and Singapore to bolster its chip ecosystem through technology transfers and collaborative R&D.
- The AICTE has updated curricula for VLSI design and chip manufacturing to build a homegrown skill base in semiconductor engineering.
The Roadmap Ahead:
- The 10 approved projects are at varying stages and projected to commence commercial production in one to five years.
- As part of public-private consultations, startups, deep-tech companies, and academic institutions are now more involved in driving domestic chip design and innovation.
- So far, 72 design firms, including MSMEs and startups, have received support for chip design infrastructure; 23 have funding to develop chips for automotive, computing, communications, and more.
Conclusion:
India’s imminent launch of its first indigenous semiconductor chip represents a pivotal moment in its quest for technological independence and global competitiveness. Backed by large-scale investments, global partnerships, and a focus on local talent, the country aims not just to reduce chip imports but to become a hub for innovation and manufacturing in the semiconductor space.
