Hi there, Tech Enthusiasts!
Have you ever imagined, the land known for its rich culture and history, India, could soon be entering the silicon market and becoming a global player in the semiconductor manufacturing industry?
Well, some of you might have thought about it and some of you might never have. But, yes, you are right if this thought ever crossed your mind, our India is stepping into the silicon chip manufacturing game in 2025 and this could change the whole dynamics of not just our tech scenario but could very well change the entire world’s way of interacting with tech.
We have a lot starting from understanding how India can enter the market and also who can be the crucial players along with how startups can be the emerging players into this semiconductor market. So, go ahead grab a cup of chai as we are about to hit home pretty hard by diving into how India is going to make waves in the silicon chip industry driven by government initiatives, hundreds of ambitious and innovative startups, and ofcourse the global collaborations that we have been seeing for the past few years.
Why Silicon Chips Matter More Than Ever
Before we go into the nitty gritty of the tech world, let’s start with the basic introduction for those who just want to keep an update about the tech news but do not have much knowledge about it.
So, the first question, Why are silicon chips so important, anyway?
Well to put it simply, these tiny pieces of technology are the heart and soul of almost anything and everything we use daily and I mean like from the smartphones that we cannot live without anymore, to the old and trusty laptops we all love to work on and believe it or not even the cars we drive is all powered by these chips i.e. Silicon Chips. Also let’s not forget, silicon chips are also the backbone of emerging technologies like AI, IoT, and 5G.
Now that’s out of the way I’ll let you in with another story, the catch about these chips:
India has been relying heavily on imports for its semiconductor needs and you know how the import duty goes. So, that’s a very risky position to be in, especially with the global supply chain disruptions becoming more frequent and evident. Hence, if we do not enter the market, it is surely going to be a big big problem for us in the future where most likely we are in the age of AI, IoT and many for advancements. So, entering the silicon chip manufacturing business isn’t just about economic growth rather it’s about being self-reliant or as our government would like to call it, “Atmanirbhar Bharat.”
The “Make in India” Push
Now that we have a clear understanding of the Silicon Chips and its importance, you are ready to dive deeper into the topic.
So, if you have been following the recent news ever since the BJP government came into ruling, I am pretty sure you’ve probably heard about the “Make in India” initiative, this campaign was launched back in the 2014 era and its only aim was to transform India into a global manufacturing hub.
So, while it’s been seeing success in various sectors across the nation, the year 2025 marks a turning point for Indian manufacturing, especially in semiconductors market, and that is exactly what we are here to discuss about.
Well, the government isn’t trying to just dip its toes into the semiconductor market thing but it plans to dive in headfirst and ofcourse striving to become the best player in the domain. Hence, a whooping $10 billion incentive package has been rolled out ever since to attract top global engineers and players and to encourage the domestic tech startups to venture into this risky and high-stakes game. India is not just talking about assembling chips that we source from other parts of the world rather we’re talking about the whole process of designing and manufacturing them from scratch. Then there is the India Semiconductor Mission (ISM) definitely a game-changer in attracting investments and boosting local production. Launched in December 2021 with an allocation of ₹76,000 crore, ISM provides production-linked and design-linked incentives for companies to establish semiconductor fabrication units, testing facilities, and design centres in India. This initiative has already secured investments worth ₹1.5 trillion from major players such as Micron, Tata Electronics, CG Power, and Kaynes Technology. The ISM is not just a policy; it’s a vision to transform India into a semiconductor hub
What’s Happening in 2025?
Okay, all things have been cleared out and I am sure we can dive into the juicy part of the blog. What exactly is happening this year? Is the question that remains to be answered, so here we go, and 2025 is set to be an important year for India’s semiconductor dreams. Here’s what’s going on in the surface level.
Micron Technology’s Big Move
Micron Technology a company purely focused on manufacturing semiconductors like providing memory and storage solutions, is said to be setting up a state-of-the-art chip packaging facility in Gujarat. In Micron’s own words “Micron is betting on India’s engineering talent and recruits from some of the country’s best engineering colleges where it is making investments and alliances to build an ecosystem for research and collaboration in the fields of semiconductor and memory design, data analytics, AI, 5G and edge technologies” as seen in their Linked In about section, by mid-2025 it is estimated and we are all hoping that we will see the first “Made in India” semiconductor chips rolling out from this plant. It’s definitely a massive step that’s expected to generate thousands of jobs and opportunities for India and not to mention, put India on the semiconductor map as one of the players.
Tata Electronics’ Ambitious Projects
The Tata Group is not holding back either. Tata Electronics, a subsidiary of Tata Sons Pvt. Ltd., has several ambitious semiconductor projects. They’re working on a fabrication unit in Dholera, Gujarat, focusing on 28-nanometer chips—a sweet spot for many applications. Plus, they’re setting up an OSAT (Outsourced Semiconductor Assembly and Test) facility in Assam.
Dholera, Gujarat
According to the news floating around in the internet, Tata Electronics has been building India’s first semiconductor fabrication plant in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC). The project has been expected to cost ₹91,000 crore overall to make this project into a reality.
Jagiroad, Assam
The company has also has been building a 600-acre assembly and testing its unit in Jagiroad, Assam. The project is expected to cost ₹27,000 crore or more but the facility is expected to start a high-volume production by mid-2025. This plant will be focusing more on three core technologies i.e. wire bond, flip chip, and Integrated Systems Packaging (ISP).
Morigaon, Assam
Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) has also been developing a semiconductor unit in Morigaon, Assam. Now this facility is expected to produce up to 48 million semiconductor chips per day which is, trust me a lot. This Assembly plant is designed to cater to sectors such as automotive, electric vehicles, telecommunications, and consumer electronics.
These projects are expected to generate significant jobs and contribute to regional economic growth in Assam and the entire Northeast India region.
Global Collaborations
And now here’s the cherry on top- The Adani Group is teaming up with Israel’s Tower Semiconductor for a $10 billion project in Maharashtra, this partnership is a testament to India’s growing credibility in the global semiconductor industry and its stability as well.
CG Power and Industrial Solutions
A key player in power equipment manufacturing, the company is venturing into semiconductor technologies and has started focusing on components essential for power electronics. These semiconductors are very crucial for industries like the renewable energy and the electric vehicles industry. The company’s focus aligns pretty well with India’s push for sustainable technologies.
Kaynes Technology
Kaynes Technology which is known for its electronic manufacturing services is currently working on establishing advanced chip testing and design centres in India. These facilities will not only enhance India’s capabilities in quality assurance but also foster innovations in chip design for emerging applications like IoT and AI.
Also, not the last but AMD setting its largest global design centre in Bengaluru, India has surely paved a big pathway for upcoming self- reliance.
Startups Joining the Revolution
Ofcourse, we know that India has been seeing a huge surge of startups and you know what’s super exciting? It is not just the big names making headlines like those mentioned above. There are Indian startups are also stepping up.
Silicon Valley to Silicon India:
Several Indian engineers who once worked in Silicon Valley are now returning back home to start their own ventures, bringing back not just the expertise but also innovative visions and solutions for the Indian scenario. Let’s take some few names like Rajeev Madhavan, an ex-Silicon Valley entrepreneur who has been mentoring a lot of young Indian startups to scale up their semiconductor game. Another inspiring story is that of a man called Shankar Subramanian, who once worked in the top-tier semiconductor firms in the U.S. eventually returns to India and Co-founded an AI startup in Bengaluru, which creates AI-driven chip designs.
These engineers are the prime example of people who bring new and improvised solutions into the Indian scenario combining the global insights and their expertise into India’s thriving manufacturing ecosystem, creating a unique blend of innovation and cost-efficiency.
Startups Like Saankhya Labs:
The Bengaluru-based startup ‘Saankhya Labs’ a chip design pioneer who is leading India’s drive into the vast field of advanced technological regions. They are known for their innovative discoveries and the company has developed world-class software defined radios and communication systems that are specially designed for 5G and satellite applications; how great is that? right. Also, one of their major contributions is the development of satellite communication modems that have been deployed globally which ensures seamless connectivity even in the remote areas. Their focus on the indigenously designed chips has placed India in the game as a serious contender in the global semiconductor landscape. Moreover, the partnership of Saankhya’s lab with ISRO and few other global organizations further underline their critical role and responsibilities in making India’s ambition to be self-reliant in high-tech communications a reality.
Startups who are AI and IoT-Focused:
Signalchip and other businesses are creating chips especially for AI and IoT applications, which significantly contributes to India’s position as a pioneer in developing technologies. As an example, we can take the first Indian Domestic semiconductor chip for 4G/LTE and 5G NR modems which Signalchip has created which only does not demonstrate the abilities of Indian engineers but also the future of independence in high-speed communication technology.
Furthermore, their emphasis on the IoT applications have resulted in a lot of collaborations with the top automation and smart device integration companies, strengthening India’s standing in the global tech sector and this is particularly crucial since India wants to become a major role in these developing industries in the future.
All-in-all these promising startups are a proof that innovation isn’t just confined to Silicon Valley but that it’s thriving right here in India, our home.
Challenges We’re Facing
Okay, now let’s just be real for a moment. While the progress is real exciting, it’s not at all a smooth sailing ship. India faces some pretty significant challenges out of which some are:
- Infrastructure: Setting up a semiconductor fab isn’t as simple as setting up a factory for consumer goods, instead it requires cutting-edge technology, uninterrupted power, and cleanroom environments and you guessed it right India is still catching up in most of these areas.
- Skilled Workforce: The semiconductor industry is highly specialized as in where the capital isn’t the main issue rather the skill of the workforce that will be responsible for different steps of the manufacturing process of Semiconductors, While, we’ve got a pool of talented engineers, no doubts we’ll need even more skilled workers to meet the demands of this sector.
- Global Competition: And finally, the global competition let’s not forget that we’re competing with tech giants like Taiwan, South Korea, and the U.S. who already have a ton of experience in manufacturing these semiconductors that we have barely stepped into.
What the Future Holds
What’s next? The roadmap looks incredibly promising for India. By 2030, India aims to be a global hub for semiconductor manufacturing. Like I said we’re talking about exporting chips, setting global standards, and maybe even outpacing some of the well-established players.
But for this dream to become a reality is going to take a collective effort from the government, the industry leaders, innovative startups and yes, even us, the consumers.
As we wrap up this blog, let’s take a moment to appreciate the journey India has embarked on. From being an importer to a potential exporter of silicon chips, the transformation is nothing short of inspiring. So, the next time you pick up your smartphone or turn on your smart TV, think about the tiny chip inside it. And who knows? By 2025, that chip might just say, “Made in India.”
As always, stay tuned for more updates on this incredible journey and Cheers to a tech-driven, self-reliant India!
