India’s semiconductor industry will command a significant share of a $1 trillion market in the next few years, Prime Minister Narendra Modi said on Tuesday. The country is becoming a full-stack semiconductor nation, he added.
While oil is called black gold, chips are now the “digital diamonds” of the 21st century, he said at the Semicon India 2025 summit. The global semiconductor market is currently worth $600 billion and India's smallest chip will soon drive the world's biggest change, he added.
Ashwini Vaishnaw, union minister for electronics and IT, presented the PM with the first chips designed and built in India by Indian students and the Murugappa Group's CG Semi. Modi pointed out that the India Semiconductor Mission, launched in 2021, has so far got $18 billion or ₹1.5 lakh crore worth of investments through 10 projects. Top global executives attending the summit include ASML CEO Christophe Fouquet, Lam Research CEO Tim Archer, Merck CEO Kai Beckmann, Semiconductor Product Group (Applied Materials) president Prabhu Raja, AMD CTO Mark Papermaster and Tokyo Electron CEO Toshiki Kawai.
“The pilot plant of CG Power started 4-5 days ago,” Modi said. “Pilot plant of Kaynes is also about to start operating. Test chips of Micron and Tata are already being produced. As I have said earlier, commercial chips will start being produced from this year itself.”
Vaishnaw had last week confirmed the first chips assembled in India would emerge from CG Semi’s pilot line in Gujarat’s Sanand. India is being recognised as a highly trusted destination for semiconductor manufacturing, the minister said. “This trust stems from India's respect for IP rights, development processes, and its approach to global partnerships,” he said.
The minister added that the scope of ISM 2.0 will be broader and deeper, providing support to capital equipment, materials and other critical components of semiconductor manufacturing, while fabs and OSAT units will remain integral to the strategy.
Pointing to recently released GDP data, Modi said India’s economy has performed better than expected at a time of global economic uncertainty.
The government's single-window clearance model has encouraged big companies to invest in India, he said.
“It has been our intent that with less paperwork, more wafer work is possible. I want to let all global investors present here know that we are working on the next stage of reforms. Our policies are not short-term signalling, but a long-term commitment,” the PM said. “Chips are being designed in our cutting-edge research and development centres in Noida and Bengaluru, which can store billions of transistors.”
A new $1 billion venture capital fund aimed at deeptech investments was launched at the inaugural session of Semicon India with the aim of driving private investments in technology sectors. The India Deeptech Alliance (IDTA) counts Celesta Capital, Accel, Blume Ventures, Gaja Capital, Ideaspring Capital, Premji Invest, Tenacity Ventures and Venture Catalysts as partners and will pull funds into R&D for the semiconductor, space and defence, biotech, digital economy areas among others.
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While oil is called black gold, chips are now the “digital diamonds” of the 21st century, he said at the Semicon India 2025 summit. The global semiconductor market is currently worth $600 billion and India's smallest chip will soon drive the world's biggest change, he added.
Ashwini Vaishnaw, union minister for electronics and IT, presented the PM with the first chips designed and built in India by Indian students and the Murugappa Group's CG Semi. Modi pointed out that the India Semiconductor Mission, launched in 2021, has so far got $18 billion or ₹1.5 lakh crore worth of investments through 10 projects. Top global executives attending the summit include ASML CEO Christophe Fouquet, Lam Research CEO Tim Archer, Merck CEO Kai Beckmann, Semiconductor Product Group (Applied Materials) president Prabhu Raja, AMD CTO Mark Papermaster and Tokyo Electron CEO Toshiki Kawai.
“The pilot plant of CG Power started 4-5 days ago,” Modi said. “Pilot plant of Kaynes is also about to start operating. Test chips of Micron and Tata are already being produced. As I have said earlier, commercial chips will start being produced from this year itself.”
Vaishnaw had last week confirmed the first chips assembled in India would emerge from CG Semi’s pilot line in Gujarat’s Sanand. India is being recognised as a highly trusted destination for semiconductor manufacturing, the minister said. “This trust stems from India's respect for IP rights, development processes, and its approach to global partnerships,” he said.
The minister added that the scope of ISM 2.0 will be broader and deeper, providing support to capital equipment, materials and other critical components of semiconductor manufacturing, while fabs and OSAT units will remain integral to the strategy.
Pointing to recently released GDP data, Modi said India’s economy has performed better than expected at a time of global economic uncertainty.
The government's single-window clearance model has encouraged big companies to invest in India, he said.
“It has been our intent that with less paperwork, more wafer work is possible. I want to let all global investors present here know that we are working on the next stage of reforms. Our policies are not short-term signalling, but a long-term commitment,” the PM said. “Chips are being designed in our cutting-edge research and development centres in Noida and Bengaluru, which can store billions of transistors.”
A new $1 billion venture capital fund aimed at deeptech investments was launched at the inaugural session of Semicon India with the aim of driving private investments in technology sectors. The India Deeptech Alliance (IDTA) counts Celesta Capital, Accel, Blume Ventures, Gaja Capital, Ideaspring Capital, Premji Invest, Tenacity Ventures and Venture Catalysts as partners and will pull funds into R&D for the semiconductor, space and defence, biotech, digital economy areas among others.
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