First made-in-India semiconductor chip to be ready this year: Ashwini Vaishnaw

Union IT and Electronics minister Ashwini Vaishnaw on Wednesday said the first Made-in-India semiconductor chip will be ready for production by 2025. He was speaking virtually on the second day of the Madhya Pradesh Global Investor Summit 2025 in Bhopal.

With a vision of becoming a leader in semiconductor manufacturing, India has made notable strides in the field over the past three years, news agency ANI quoted Vaishnaw as saying. He was referring to the work done under the India Semiconductor Mission (ISM), which was set up in December 2021.

ISM incentivises semiconductor manufacturers to set up their facilities and operational plans in India. The mission's incentive package includes financial support for companies establishing semiconductor fabrication units, display fabrication units, compound semiconductor units, semiconductor assembly, testing, marking and packaging units, along with design-linked incentives.

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Micron had announced plans to build a semiconductor assembly and testing plant in Gujarat in June 2023.

Tata Electronics later partnered with Taiwanese semiconductor manufacturer PSMC to establish India's first semiconductor fabrication unit in September 2024. According to a press release, the facility is expected to produce up to 50,000 wafers per month, serving diverse industry needs, including automotive, computing and data storage, and wireless communication sectors.

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Other major Indian conglomerates such as Larsen & Toubro (L&T) and the Adani Group have also made inroads into this space, underscoring the growing strategic importance of this industry in India’s economic and national security roadmap.

The Indian government has also collaborated with US under the US-India Initiative on Critical and Emerging Technology (iCET), which covers areas like AI, quantum computing, semiconductors and wireless telecommunications.

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Adding to the drive, former Minister of State for Electronics and IT, Rajeev Chandrasekhar, recently reached out to Indian innovators through an X post, expressing his willingness to mentor and support those working in deep AI, semiconductors, and electronics.