India’s First Domestic Semiconductor Chip to Debut by Year-End, Marking Tech Milestone
New Delhi, August 15, 2025 – India is poised to launch its first domestically produced semiconductor chip by the end of 2025, a historic step toward technological self-reliance, as announced by Prime Minister Narendra Modi during his 79th Independence Day address from the Red Fort. This milestone, driven by the India Semiconductor Mission (ISM) and backed by ₹1.6 lakh crore in investments, positions India as a rising player in the global semiconductor industry. With six operational units and four newly approved plants, the country aims to reduce its 90% import dependency and join the ranks of global chip leaders like Taiwan and South Korea by 2030.
A Historic Leap: The Made-in-India Chip
In his speech on August 15, 2025, Modi declared that “made in India, made by the people of India” semiconductor chips will hit the market by year-end, marking a significant achievement for the ISM. The first chips, likely 28-90 nm packaged units, are expected from facilities in Gujarat, including Tata-Micron OSAT, CG Power-Renesas OSAT, and Kaynes Technology OSAT in Sanand. IT Minister Ashwini Vaishnaw confirmed intense competition among these units to roll out the first chip, with testing already underway for consumer electronics, automotive, and defense applications.
The chips will support devices like smartphones, laptops, electric vehicles, and home appliances, addressing India’s $45–50 billion semiconductor market, projected to reach $100–110 billion by 2030. Modi highlighted decades of lost opportunities, noting that semiconductor plans from the 1960s, including a failed Intel-backed initiative, were “stuck in files” while other nations surged ahead.
Project | Location | Investment (₹ Crore) | Annual Capacity | Key Partners |
|---|---|---|---|---|
Tata-Micron OSAT | Sanand, Gujarat | 22,516 | Not specified | Micron Technology |
CG Power-Renesas OSAT | Sanand, Gujarat | 7,600 | Not specified | Renesas, Stars |
Kaynes Technology OSAT | Sanand, Gujarat | 3,307 | Not specified | – |
3D Glass Solutions | Odisha | 1,943 | 5 crore units | Intel, Lockheed Martin, Applied Materials |
SiCsem (SiC Fab) | Bhubaneswar, Odisha | 2,066 | 9.6 crore chips | – |
Advanced System in Package | Andhra Pradesh | 468 | 9.6 crore chips | – |
CDIL Semiconductor | Punjab | 117 | 15.8 crore units | – |
Strategic Push: India Semiconductor Mission
Launched in 2021, the ISM has catalyzed India’s semiconductor ecosystem with ₹1.6 lakh crore in investments across 10 units, including four approved in August 2025 with a combined ₹4,594 crore. These facilities, spanning Gujarat, Odisha, Andhra Pradesh, Punjab, Assam, and Uttar Pradesh, focus on assembly, testing, packaging, and fabrication. Notable projects include India’s first commercial silicon carbide (SiC) fabrication unit by SiCsem in Bhubaneswar and a 3D glass semiconductor packaging unit backed by Intel and Lockheed Martin.
The initiative aligns with Modi’s vision of “Atmanirbhar Bharat” (self-reliant India), reducing reliance on imports, which currently account for over 90% of India’s chip needs. Partnerships with global giants like Taiwan’s PSMC, Micron, and Foxconn have bolstered India’s capabilities, while the government’s mission-mode approach addresses past bureaucratic delays.
Global Context: A New Semiconductor Power
India’s chip debut positions it among the top 10 semiconductor nations in 2025, alongside Taiwan, the U.S., South Korea, and China. Taiwan dominates with TSMC’s 90% share of advanced chip production, while India’s focus on packaging and emerging fabrication aims to capture a slice of the $500 billion global market. The country’s rise as the top U.S. smartphone supplier in Q2 2025, driven by Apple’s manufacturing shift, complements its semiconductor ambitions, though U.S. tariffs (25% on Indian imports, paused in July 2025) and Trump’s call to curb Indian tech hiring pose risks.
On X, @FrontalForce celebrated India’s start in 28 nm chip production, with ambitions for 2–3 nm chips, while @IndiaWarZone hailed the milestone as placing India in the “elite league” of semiconductor nations. @infoindata noted the ₹1.6 lakh crore investment driving this “historic revival.”
Challenges and Future Outlook
Scaling semiconductor production faces hurdles, including technical complexity, high capital costs, and global competition. India’s less mature ecosystem compared to China’s or Taiwan’s requires sustained investment and skilled talent. Geopolitical tensions, such as U.S. trade policies and India’s balancing act with Russia (highlighted by Putin’s Independence Day praise), could impact partnerships.
Looking ahead, India aims to produce high-end 2–3 nm chips by 2030, supported by the ISM’s focus on R&D and workforce development. The government’s recent GST reforms and infrastructure push, announced during Modi’s Independence Day speech, will further bolster the sector. With the first chip’s debut, India is on track to become a global hub for chip design and production, reshaping its role in the digital economy.
Conclusion: A Semiconductor Revolution Begins
India’s first domestic semiconductor chip, set for launch by December 2025, marks a transformative milestone in its journey toward technological independence. Backed by ₹1.6 lakh crore in investments and strategic global partnerships, the ISM is turning decades-old aspirations into reality. As India navigates trade tensions and global competition, this achievement signals its emergence as a semiconductor powerhouse, poised to redefine the tech landscape for generations.
