India’s Semiconductor Dream: Govt Confident about a Major Leap Towards Self-Sufficiency in 2025

New Delhi: India is on the brink of a historic transformation in the semiconductor industry, with Union Minister for Electronics and IT, Ashwini Vaishnaw, expressing confidence that the country’s first indigenously developed semiconductor chip will be ready for production by 2025.

This milestone underscores India’s rapid advancements in semiconductor and electronics manufacturing, a sector that has seen unprecedented growth under Prime Minister Narendra Modi’s leadership.

Vaishnaw recently highlighted that India has made significant strides in semiconductor manufacturing, with five major facilities currently under construction. These projects, backed by massive investments, aim to position India as a key player in the global semiconductor supply chain.

Key Semiconductor Projects Powering India’s Dream

Micron’s Sanand Facility

One of the most significant projects under India’s semiconductor mission is Micron Technology’s facility in Sanand, Gujarat. This 1.4 million square foot Assembly, Testing, Marking, and Packaging (ATMP) facility is being built on 50 acres in the Sanand industrial area.

Construction began in July 2023, and about 60 per cent of the project has already been completed. Tata Projects Ltd, responsible for the construction, has stated that the facility will be handed over to Micron between September and December 2025.

The $2.75 billion project marks the largest investment under the India Semiconductor Mission (ISM) and is expected to create nearly 5,000 direct jobs and an additional 15,000 indirect jobs once operational.

Tata Electronics’ Semiconductor Fab in Dholera

Tata Electronics Private Limited (TEPL) is setting up a semiconductor fabrication facility in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC). With an investment of Rs 91,000 crore, this fab in Dholera, Gujarat, will have a capacity of 50,000 wafer starts per month (WSPM).

It will focus on high-performance computing chips with 28 nm technology and power management chips for sectors such as electric vehicles (EVs), telecom, defence, automotive, consumer electronics, and power electronics.

Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) in Assam

Another major development comes from Tata Semiconductor Assembly and Test Pvt Ltd (TSAT), which is setting up a semiconductor ATMP unit in Morigaon, Assam. With an investment of Rs 27,000 crores, this unit will have a capacity of 48 million chips per day and will specialize in advanced semiconductor packaging technologies, including flip chip and ISIP (integrated system in package) technologies. The chips produced here will cater to automotive, EVs, consumer electronics, telecom, and mobile phones.

CG Power’s Semiconductor ATMP Unit in Gujarat

CG Power, in partnership with Renesas Electronics Corporation (Japan) and Stars Microelectronics (Thailand), is establishing another semiconductor ATMP unit in Sanand, Gujarat.

With an investment of Rs 7,600 crore, this facility will focus on manufacturing specialized chips for consumer, industrial, automotive, and power applications. It will have a production capacity of 15 million chips per day.

Kaynes Semicon Pvt Ltd’s Unit in Sanand

Kaynes Semicon Pvt Ltd has also received approval from the Union Cabinet to set up a semiconductor unit in Sanand, Gujarat, with an investment of Rs 3,300 crore.

This facility will have a capacity of 60 lakh chips per day and will serve industries including industrial, automotive, EVs, consumer electronics, telecom, and mobile phones.

Also read – Vision for Economic Growth, Semiconductor Leadership and AI Skilling: Union Minister Vaishnaw at Davos 2025

Strategic Importance and Economic Impact

The government’s aggressive push toward semiconductor self-sufficiency is not only about reducing dependency on foreign supply chains but also about establishing India as a global hub for semiconductor manufacturing. The ISM, launched with an outlay of Rs 76,000 crore, has played a crucial role in bringing these investments and projects to fruition.

Within a short span, India has made significant progress in establishing a semiconductor ecosystem. The collective investment in these five semiconductor units is around Rs 1.5 lakh crore, and their cumulative production capacity is estimated at around seven crore chips per day.

The direct employment potential of these facilities stands at 20,000 advanced technology jobs, with an additional 60,000 indirect jobs expected in associated industries such as automotive, electronics, and telecom manufacturing.

Reviving India’s Semiconductor Legacy: The Role of SCL

India’s journey in the semiconductor domain dates back to the 1980s with the establishment of the government-owned Semiconductor Complex Limited (SCL) in Mohali. However, the sector suffered a significant setback in 1989 when a mysterious fire destroyed critical infrastructure at SCL. Since then, India’s semiconductor ambitions have remained largely unfulfilled—until now.

The government has recently issued a Request for Proposal (RFP) for the augmentation and enhancement of SCL’s existing 8-inch fab (180nm CMOS fab-line) in Mohali.

The project aims to augment the facility’s capacity to at least 1,500 wafer starts per month (WSPM), build redundancy, improve operational performance, and enhance technological capabilities to support broader industry needs. The modernization of SCL is a crucial step toward ensuring India’s semiconductor sustainability.

Government Initiatives and Fiscal Support

One of the most important initiatives that helped the country revive its semiconductor ambitions is the India Semiconductor Mission (ISM). Under this mission government has rolled out several financial and policy incentives:

• Semiconductor Fab Scheme: Offers fiscal support of up to 50 per cent of the project cost on a pari-passu basis.
• Display Fab Scheme: Provides up to 50 per cent fiscal support for establishing display fabrication units.
• Compound Semiconductor & ATMP Scheme: Extends fiscal support of 50 per cent for setting up compound semiconductor fabs and advanced packaging facilities.
• Design Linked Incentive (DLI) Scheme: Provides financial incentives and infrastructure support for semiconductor design development.

India’s Semiconductor Future: 2025 and Beyond

With rapid advancements in infrastructure, technology partnerships, and government support, India is poised to make a significant impact on the global semiconductor industry.

The rollout of the first Made-in-India semiconductor chip by 2025 will mark the beginning of a new era of technological self-sufficiency.

As the country builds a robust semiconductor ecosystem, it is set to become a major player in the global supply chain.

The government’s strategic vision, combined with the expertise of global partners like Micron, Tata Electronics, and Renesas, is ensuring that India’s semiconductor dream is finally turning into reality.

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Union Minister Vaishnaw Announces Semiconductor Plant, IT Hub and Rail Expansion at Advantage Assam 2.0