India is entering a transformative era in technology. With the launch of the Semicon India Programme in January 2022, the government is laying the foundation for a comprehensive semiconductor ecosystem, spanning chip design, fabrication, assembly, testing, packaging, and module manufacturing. This initiative is set to position India as a global electronics and semiconductor hub, while driving self-reliance, innovation, and economic growth.
From Vision to Action
Under the leadership of Prime Minister Narendra Modi, the vision of AtmaNirbhar Bharat (self-reliant India) has translated into ambitious policies targeting electronics and semiconductor manufacturing. Semiconductors are the backbone of nearly every modern device—from smartphones and computers to electric vehicles and defense equipment—making their local production critical for national growth and strategic security.
The results over the past decade are impressive:
| Metric | 2014-15 | 2024-25 | Growth |
|---|---|---|---|
| Electronics production | ₹1.9 Lakh Cr | ₹12 Lakh Cr | 6× |
| Electronics exports | ₹38,000 Cr | ₹3.3 Lakh Cr | 8× |
| Mobile phone production | ₹18,000 Cr | ₹5.45 Lakh Cr | 28× |
| Mobile phone exports | ₹1,500 Cr | ₹2 Lakh Cr | 127× |
| Mobile imports | 75% | 0.02% | – |
These figures underscore India’s remarkable journey from heavy import dependence to a thriving domestic manufacturing ecosystem.
Building a Full-Stack Semiconductor Ecosystem
The Semicon India Programme is designed to cover the entire semiconductor value chain. Within just four years, the government has approved 10 major projects with a combined investment of over ₹1.6 lakh crore. Two plants—Micron Technology and Kaynes Technology—have already begun commercial production, with two more expected to start this year.
The programme focuses on three main pillars:
- Chip Design Ecosystem:
India is nurturing talent by providing free access to state-of-the-art chip design tools from eight global companies across 315 universities. These tools have enabled over 200 lakh hours of design work, resulting in 211 chip tape-outs, including advanced nodes such as 180nm. - Supporting Design Companies:
The government has approved 24 projects to develop semiconductor chips and SoCs in sectors like IoT, drones, video surveillance, energy metering, and satellite communications. Fourteen of these companies have raised over ₹650 crore in venture funding, and seven chips have already been fabricated on advanced nodes like 12nm. - Manufacturing and Production:
Approved manufacturing units are spread across Gujarat, Assam, Uttar Pradesh, Odisha, Punjab, and Andhra Pradesh, many in partnership with global technology leaders such as PSMC, Renesas, Foxconn, and APACT Co. These facilities will produce a variety of semiconductor devices, from DRAM and NAND products to advanced packaging and 3D heterogeneous integration modules.
The recently announced India Semiconductor Mission 2.0 will strengthen capabilities in equipment and material production, full-stack design, Indian IP creation, and supply chain resilience, ensuring India’s position as a global semiconductor player.
Global Partnerships for a Stronger Ecosystem
Recognizing the strategic importance of semiconductors, India has forged collaborations with countries like the United States, Japan, Singapore, the Netherlands, and the European Union. These partnerships support technology transfer, skill development, and joint manufacturing, helping India build a resilient and future-ready semiconductor supply chain.
Driving Employment and Economic Growth
The growth of India’s semiconductor and electronics sectors has already created significant employment opportunities. Current estimates suggest the industry supports 25 lakh jobs, both directly and indirectly, with mobile phone manufacturing alone employing 12 lakh people across production, logistics, and supply chains.
With 10 more semiconductor units under construction through the India Semiconductor Mission (ISM), employment is expected to rise further, including in ancillary sectors like PCBs, capacitors, laminates, and other components.
Spotlight on Key Projects
Some of the flagship projects under the programme include:
- Micron Technology, Gujarat: Investment of ₹22,516 crore for DRAM and NAND assembly and test, producing 14 million units per week.
- Tata Electronics, Gujarat & Assam: Investment over ₹1.18 lakh crore; focus on fabrication, packaging, and module manufacturing, with technology partnerships with Taiwan’s PSMC.
- Kaynes Technology, Gujarat: Investment of ₹3,307 crore for wire-bond interconnect and substrate-based packages, producing 6.3 million chips daily.
- Facilities in Odisha and Uttar Pradesh: Specialize in advanced packaging, display driver ICs, and 3D heterogeneous integration modules.
These projects demonstrate a commitment to regional development, advanced technology adoption, and strategic capacity building.
Transforming India’s Technological Landscape
The Semicon India Programme is more than an industrial initiative—it is a strategic investment in India’s future. By creating a full-stack semiconductor ecosystem, India is not only reducing dependency on imports but also empowering local engineers, startups, and industries to compete globally.
This programme represents a turning point: India is moving from being a consumer of semiconductors to a designer, manufacturer, and innovator, laying the groundwork for decades of technological advancement, economic resilience, and employment generation.
In the coming years, India’s semiconductor sector is poised to become a key pillar of the country’s industrial growth, global trade, and technological self-reliance.