India has officially entered the semiconductor race with the successful manufacturing of its first made-in-India chip, personally received by Prime Minister Narendra Modi. This milestone comes after decades of missed opportunities and places India firmly on the path to becoming a key player in the global semiconductor ecosystem.

The government is making massive investments in chip design, fabrication, and packaging facilities, aiming to cut reliance on foreign suppliers and secure supply chain resilience in critical technologies. With the digital economy, EV adoption, AI, and 5G driving chip demand, this moves positions India as a strategic hub in the evolving global semiconductor order.24

Government Push: Policy and Investment

• Semicon India Program: $10 billion incentive scheme to support design, manufacturing, and R&D.
• PLI (Production-Linked Incentives): Encouraging both global majors and domestic players to set up fabs in India.
• Strategic Focus: Reduce import dependence (currently 100%) and boost technology sovereignty.

Private Market Key Players

India’s semiconductor landscape is seeing robust engagement from both domestic and international players:

Public Market Key Players

While India does not yet have listed pure-play semiconductor foundries, several listed companies are emerging as critical beneficiaries and enablers of the chip ecosystem:

India’s Road to Semiconductor Leadership

The first chip may only be symbolic in terms of scale, but it sets the stage for India’s semiconductor journey. Backed by strong policies, coordinated efforts between government and industry, and global alliances, India has the potential to secure a meaningful stake in the projected $1 trillion semiconductor market by 2030.

Challenges remain—such as high capital intensity, lack of skilled workforce, and dependence on global IP—but momentum is firmly on India’s side.

Conclusion

India’s first domestically produced semiconductor chip represents a landmark achievement in its journey toward technological independence. Backed by government support, active private sector involvement, and growing global demand, the country is well-positioned to redefine its semiconductor landscape. While challenges remain, strong momentum and strategic planning could establish India as a major player in global chip manufacturing.

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