India's First Made-in-India Chip to Launch by October: IT Minister

India’s IT Minister, Ashwini Vaishnaw, has announced that the first "Made-in-India" chip is expected to be rolled out by October. The development of this semiconductor is part of the country’s broader ambition to establish a thriving semiconductor manufacturing ecosystem within its borders. In a media interaction in Bengaluru on February 15, Vaishnaw provided updates on various semiconductor projects and plans to make India a global hub for chip manufacturing.

Collaboration and Progress in Semiconductor Manufacturing

One of the key developments in this sector is the collaboration between Tata Electronics and Powerchip Semiconductor Manufacturing Corporation (PSMC). Together, they are constructing a semiconductor unit in Gujarat’s Dholera. Additionally, Micron’s semiconductor assembly and testing facility in Sanand, Gujarat, is nearing completion with approximately 60% of construction work already finished.

Research and Development Focus

To strengthen the country’s semiconductor capabilities, the Indian government has approved a grant of INR 334 crore for the Indian Institute of Science (IISc) in Bengaluru. The funding will be used for research and development (R&D) in gallium nitride, a critical semiconductor technology that plays a significant role in telecom and power sectors. This investment underlines India’s focus on improving its domestic R&D to support the semiconductor industry.

Semiconductor Education and Skill Development

In line with its push to nurture local talent, the Indian government is also distributing the latest semiconductor design tools to students in 234 universities across the country. This initiative is aimed at building a strong talent pool equipped with the skills needed to drive India’s semiconductor ambitions.

Upcoming Production Linked Incentive (PLI) Scheme for Components

Vaishnaw also revealed plans for a new Production Linked Incentive (PLI) scheme, set to focus on semiconductor components. Although specific details of the scheme were not disclosed, it is expected to boost domestic production of semiconductor components and contribute to the growth of India's semiconductor ecosystem.

Investment in Electronics Manufacturing

India has seen substantial investments in the electronics manufacturing space, with INR 13,162 crore invested recently. Vaishnaw emphasized that further investments are expected, highlighting the growing interest in India’s semiconductor manufacturing potential. The government’s supportive policies and favorable investment climate are expected to attract more global players to set up operations in India.

India Semiconductor Mission (ISM) Updates

The India Semiconductor Mission (ISM), launched under the Semicon India program in 2021, aims to position India as a leading semiconductor manufacturing hub. The first iteration of the mission (ISM 1.0) focuses on modernizing the semiconductor lab in Mohali. After completing ISM 1.0, the government plans to begin work on ISM 2.0, with a budgetary allocation to be decided after Cabinet approval. The government’s proactive approach to semiconductor development demonstrates its commitment to creating a world-class semiconductor industry in India.

Semicon India Program: Fostering Global Investment

Launched in 2021 with a funding outlay of INR 76,000 crore, the Semicon India program is designed to incentivize the establishment of silicon semiconductor fabs, display fabs, and compound semiconductor manufacturing. The program is an integral part of the government’s vision to make India a semiconductor manufacturing powerhouse. Under this initiative, significant investments have already been made, and more are expected as India strengthens its position in the global semiconductor market.

Rising Investor Interest in India’s Semiconductor Startups

The semiconductor sector in India is also experiencing a surge in investor interest. Homegrown semiconductor startups have raised $28 million in 2024, a significant increase compared to $5 million in 2023. This boost in funding reflects the growing confidence in India’s semiconductor potential and the emergence of a robust startup ecosystem. The Indian semiconductor market is expected to become a $150 billion opportunity by 2030, attracting both domestic and international investors.

Conclusion: India’s Vision for Semiconductor Self-Reliance

With the government’s sustained push to develop semiconductor manufacturing capabilities, India is on the path to becoming a key player in the global semiconductor market. The rollout of the first Made-in-India chip by October 2024 is a significant milestone in this journey. With ongoing investments in R&D, infrastructure, and talent development, India is positioning itself to take a leading role in semiconductor production in the years to come.