Will India Become One of the Top 5 Chipmaking Nations?

Synopsis
Key Takeaways
- India is rapidly advancing in semiconductor technology.
- The government is establishing a comprehensive ecosystem for chip production.
- Students from IITs are actively contributing to semiconductor designs.
- India’s electronics exports have seen an eight-fold increase over 11 years.
- New semiconductor fabrication plants are set to enhance production capabilities.
New Delhi, July 20 (NationPress) According to Union Electronics and IT Minister Ashwini Vaishnaw, the advancements in capital equipment and materials for semiconductor fabrication will propel India into the ranks of the top five semiconductor-producing nations in the near future.
Vaishnaw pointed out the impressive strides India is making in the semiconductor industry, emphasizing the establishment of a comprehensive ecosystem that spans from chip design to manufacturing, positioning the country as a prospective global hub for semiconductor production.
During his address at the 14th convocation of IIT-Hyderabad, he acknowledged the crucial contributions of students from Indian Institutes of Technology (IITs) in this transformative journey.
He disclosed that students have successfully designed 20 chipsets, with eight already having reached the “taped out” stage for fabrication.
These chipsets are being produced at international foundries as well as the Semiconductor Laboratory (SCL) in Mohali, which has been operational since 1976 and is government-owned.
Furthermore, he announced that India is on track to manufacture its first commercial-scale, Made-in-India semiconductor chip this year.
This achievement is backed by the government’s India Semiconductor Mission, which has equipped 270 colleges and 70 startups with advanced electronic design automation (EDA) tools.
At IIT-Hyderabad, over 700 students have utilized these tools for a total of 300,000 hours in the past six months alone.
To further enhance innovation, the government has launched AIKosh, an open-source AI platform that currently hosts 880 datasets and over 200 AI models, available at no cost to students, researchers, and startups nationwide.
Vaishnaw emphasized that these initiatives are yielding tangible economic benefits. He stated, “India’s electronics exports have surpassed $40 billion, reflecting an eight-fold increase over the past 11 years.”
He also highlighted that the country's electronics production has seen a sixfold increase during this time, achieving a compound annual growth rate (CAGR) that many private firms would envy.
As of July 2025, six semiconductor fabrication plants (fabs) have either received approval or are in the development phase within India.
While the SCL in Mohali continues to operate with legacy technology, the forthcoming fabs are anticipated to introduce cutting-edge semiconductor capabilities.