India Announces Ambitious Chip Production Plans

In a groundbreaking announcement, Prime Minister Narendra Modi revealed that India will kick off commercial semiconductor production by the end of 2025. Speaking at the Semicon India conference in New Delhi, Modi emphasized his vision for India to emerge as a major global hub for chip innovation.

Rapid Growth in Semiconductor Market

India's semiconductor market is booming, projected to escalate from a notable US$38 billion in 2023 to between US$45 billion and US$50 billion by 2024-2025. The government has set an ambitious target for the market to reach US$100 billion by 2030.

Groundbreaking Projects Underway

Currently, India is investing US$18 billion across ten semiconductor projects. Among these are two cutting-edge 3-nanometre design facilities located in Noida and Bengaluru, marking India’s commitment to technological advancement.

India's Competitive Edge in Semiconductor Sector

Modi highlighted India's unique advantages, including a robust supply of critical materials for semiconductor production and expertise in research, artificial intelligence, big data, and cloud computing. Notably, he pointed out that 20% of the global talent in semiconductor design hails from India.

Strengthening International Alliances

This announcement follows Japan’s commitment to invest 10 trillion yen (approximately US$68 billion) in India, which covers various sectors including semiconductor and AI collaboration, showcasing strategic international partnerships.

Navigating Economic Challenges

As the world's fifth-largest and fastest-growing major economy, India is looking to rebound from economic challenges, including the heavy impact of US tariffs. With global demand for chips skyrocketing, India aims to establish a comprehensive semiconductor ecosystem that ensures both self-reliance and international competitiveness.

A Call to Global Confidence

"Today's India inspires confidence in the world," Modi stated, reinforcing the country’s promising prospects in the semiconductor industry. He concluded optimistically, saying, "When the chips are down, you can bet on India." This statement encapsulates India's determination to carve out a significant role in the global semiconductor landscape.