India to Roll Out its Own Semiconductor Chips by end of 2025: PM Modi

By R Anil Kumar 

• India has made remarkable progress in strengthening its semiconductor ecosystem, driven by the vision of Aatmanirbhar: PM Modi

Bengaluru. Prime Minister Narendra Modi’s Independence Day address in 2025 marked a significant moment for India’s technological and economic trajectory, as he unveiled a series of ambitious initiatives targeting core sectors such as semiconductors, clean energy, employment, and tax reform.

Speaking from the historic Red Fort for the twelfth consecutive time, PM Modi set an assertive tone for India’s future, emphasising the need for technological leadership and self-reliance in the 21st century.

One of the highlights of the speech was the announcement that India will launch its own semiconductor chips by the end of 2025.

PM Modi acknowledged that the idea of building a domestic semiconductor manufacturing capability was discussed in the country as far back as 50 to 60 years ago but lamented that it was never realised, describing it as an opportunity “killed in the womb.”

However, he emphasised that the current government is determined to reverse this legacy by working in “mission mode” to realise India’s semiconductor ambitions.

The Prime Minister confirmed that by the end of 2025, chips designed, developed, and manufactured in India would be available, marking a pivotal breakthrough for the nation’s electronics and technology ecosystem.

This focus on semiconductors also aligns with India’s aspirations to become a global technology powerhouse, reduce dependence on imports for critical components, and secure its position in the evolving digital and AI-driven economies.

In the broader context of technology, Modi described the 21st century as a “technology-driven century” and stressed that only those nations who lead in technological innovation would be able to attain greater success and global influence.

By aligning government policy and investment toward cutting-edge sectors, he projected a vision of India not just as a consumer of global technology but as a creator and exporter.

Switching focus to the energy sector, the Prime Minister shared that India has already achieved its target of 50% clean energy capacity, reaching this milestone five years ahead of the original 2030 goal.

This rapid progress was attributed to government initiatives across solar, hydrogen, and nuclear energy, reinforcing the country’s commitment to sustainability and energy independence.

PM Modi linked the semiconductor push and advancements in energy as part of a cohesive strategy for making India self-reliant across critical and foundational sectors.

Job creation featured prominently in the speech with the unveiling of a youth employment scheme valued at ₹1 trillion. This large-scale investment is intended to create new opportunities for young Indians, aiming to harness the country’s demographic dividend by fostering entrepreneurship, skilling, and innovation-driven jobs.

In the area of public finance and ease of doing business, Modi promised a major overhaul of India’s indirect tax structure. He announced that the next generation of Goods and Services Tax (GST) reforms will be launched by Diwali 2025 (October), describing them as a “big gift” for citizens.

The proposed new GST structure is designed to be simpler, thus improving compliance, reducing bureaucratic hurdles, and making it easier for ordinary Indians and businesses to navigate the tax system.

Through these announcements, Prime Minister Modi’s speech charted an integrated path for India’s economic and technological growth.

By focusing on cutting-edge manufacturing, clean energy leadership, massive job creation, and tax simplification, the government aims to position India at the forefront of global innovation while ensuring inclusive and sustainable development at home.

The address not only reinforced India’s resolve to overcome longstanding bottlenecks but also set forth an aspirational agenda to steer the country through complex global challenges and opportunities in the years ahead.

Powering the Future: The Semiconductor Revolution 

Semiconductors are fundamental to today’s digital economy, powering everything from smartphones and automobiles to defence and medical devices.

India has made remarkable progress in strengthening its semiconductor ecosystem, driven by the vision of Aatmanirbhar.

With the launch of the India Semiconductor Mission and an outlay of ₹76,000 crore, several fabrication and design facilities have been established, propelling the country towards technological leadership and reduced import dependence.

Recent government approvals and investments signify India’s emergence as a global hub for electronics and semiconductor manufacturing, underscoring its commitment to self-reliance and innovation.

Major Milestones

2021: Union Cabinet approved the India Semiconductor Mission (ISM) with a ₹76,000 crore outlay to boost fabrication, design, and manufacturing.

2023–2025: Rapid setup of major facilities by domestic and foreign firms with significant investments. Total approved projects under ISM reaches to 10 with cumulative investments of around Rs.1.60 lakh crore in 6 states.

2025: India inaugurated its first centres for advanced 3-nanometer chip design in Noida and Bengaluru, an Indian first.

At the Global Investors Summit 2025, it was announced that India’s first indigenous semiconductor chip would be ready for production this year.

Five production units are under construction, signalling a significant milestone for domestic capability.

Madhya Pradesh has made a significant stride in the IT and electronics sector with the inauguration of its first IT campus, backed by an investment of ₹150 crore over the next six years.

In July 2025, Netrasemi, a startup supported under the government’s chip design scheme, has received Venture Capital (VC) investment of ₹107 crore. The company is working on making chips for smart vision, CCTV cameras, and Internet of Things (IoT) applications.

In fabrication, India is moving from traditional Silicon based semiconductors to the latest Silicon Carbide based semiconductors.

In design, the roadmap is to introduce the more advanced 3D Glass packaging technology. Such technology is critical for sectors like defence systems, missiles, radars & rockets in space.

India’s Semiconductor Ecosystem:

Training tomorrow’s Experts

New curriculum by All India Council for Technical Education (AICTE) for VLSI Design & Technology, Integrated Circuit (IC) manufacturing.

Developing 85,000 skilled manpower in semiconductor design sector & providing EDA tools to design semiconductor chips, over 10 years.

45,000+ students from 100 institutions enrolled so far.

Skilled Manpower Advanced Research and Training (SMART) Lab at NIELIT Calicut to train 1 lakh engineers nation-wide with 44,000+ engineers already trained.

Collaboration with industry and universities such as Lam Research, IBM and Purdue University.

C2S program: 278 academic institutions and 72 start-ups have been given EDA tools, as of August 2025.

60 thousand students benefitted, as of August 2025.

20 chips from 17 institutions fabricated so far; showing India’s push for indigenous R&D.

SEMICON India: (Sept 2–4, New Delhi)- a flagship event organised in partnership with SEMI (Semiconductor Equipment and Materials International). The platform brings together global industry leaders, policymakers, academia, and startups to foster investment, dialogue, and strategic partnerships. will unite global leaders, academia, and industry to drive collaboration, research, and supply chain advancements.

These achievements reflect India’s determined, multi-pronged effort to achieve Aatmanirbharta, reduce external dependencies, and emerge as a global semiconductor powerhouse.