India is accelerating efforts to build a self-reliant semiconductor industry, with six chip manufacturing plants approved and under construction across the country. Speaking at the 85th anniversary of the Keshav Memorial Educational Society on July 18, Electronics and IT Minister Ashwini Vaishnaw announced that India's first domestically produced semiconductor chip will be launched by the end of 2025.

Vaishnaw highlighted that complex chip design work is already being carried out in Indian tech hubs such as Hyderabad, Bengaluru, Pune, and Chennai. The government, he said, has now shifted focus to manufacturing, with construction underway at six semiconductor facilities. As part of the national AI mission, India is also uploading free datasets and training up to one million people in AI applications. "India is preparing to become a major global player in semiconductors," he stated.

The push is part of India's broader "Semicon India" initiative launched in 2021, with ₹760 billion earmarked to support domestic chip and display manufacturing. The program covers a wide range of technologies including silicon and compound semiconductors, silicon photonics, advanced packaging, and chip design.

According to Indian media, the approved projects are largely focused on assembly, packaging, and testing (OSAT)—a less capital-intensive but labor-heavy part of the chip supply chain, considered a strategic entry point for emerging economies.

Among the six approved projects, a joint venture between HCL Group and Foxconn will invest ₹37.06 billion in a facility producing display driver ICs for smartphones, laptops, automobiles, and PCs. The plant will have a monthly capacity of 20,000 wafers and aims to produce 36 million chips annually starting in 2027.

Meanwhile, Tata Group is building India's first integrated backend semiconductor facility in Assam. The plant, which broke ground in August 2024, will receive ₹270 billion in investment and is expected to begin operations in 2025. It will focus on advanced packaging technologies such as wire bonding, flip-chip, and system-in-package (SiP), targeting demand from the automotive and mobile device industries.

While India's first-generation fabs will not produce cutting-edge chips, they will support crucial applications in entry-level smartphones and automobiles—especially Tata's own vehicle lines. Analysts note that although more advanced manufacturing will take time, India's labor pool already includes over 125,000 chip design professionals, many working at major global semiconductor firms.

However, challenges remain. Over 90% of India's semiconductor demand is still met through imports, and some observers question whether long-term government support will be sufficient to make the sector globally competitive. Others warn that mandating use of lower-performance domestic chips could burden local manufacturers.

Despite the hurdles, India's semiconductor ambitions have gained urgency following global chip shortages and rising concerns about supply chain security. With public funding, foreign partnerships, and a growing domestic talent base, the country is laying the groundwork to become a key player in the global chip race.