Is India Set to Become the Go-To Hub for the Semiconductor Value Chain?

New Delhi, Sep 3 (NationPress) Prime Minister Narendra Modi on Wednesday emphasized an article by Union Minister Ashwini Vaishnaw, indicating that in the next decade, as India’s semiconductor units reach scale and maturity, the country is poised to become a competitive hub for the entire semiconductor value chain.

PM Modi remarked that the article elaborates on Bharat’s transformative semiconductor journey, highlighting that the Semicon India Summit 2025 represents a continuation of this trajectory.

The article perceives semiconductors as integral to foundational sectors such as steel, power, telecom, chemicals, transport, and semiconductors. These components are the unseen engines within nearly everything we utilize, including smartphones, vehicles, trains, medical apparatus, defense systems, power grids, satellites, and artificial intelligence.

The Minister for Electronics & IT has asserted that the demand for semiconductors is only anticipated to increase in the future. Our consumption and production of electronics are expanding at an extraordinary rate. Currently, India boasts over 650 million smartphone users, with electronics manufacturing approaching Rs 12 lakh crore annually.

Additionally, the nation is advancing AI-based systems, data centers, and electric vehicles, all of which necessitate semiconductor chips. This surge in both demand and innovation underscores the necessity for Bharat to secure its position within the global semiconductor value chain.

“For many years, India was deemed to have 'missed the bus' regarding semiconductors. This narrative is no longer valid. Under the India Semiconductor Mission, ten semiconductor plants have been sanctioned, and construction is progressing swiftly. We can confidently state that the first 'Made in India' chip will debut this year. A pilot production line in one of the facilities has already commenced in Sanand, with four more units expected to begin production within a year. Global leaders like Applied Materials, Lam Research, Merck, and Linde are investing in supportive factories and supply chains. This ecosystem approach reflects Prime Minister Narendra Modi’s commitment to the long-term growth of the industry in Bharat,” the article states.

A confluence of factors has contributed to this remarkable success in such a brief timeframe -- the clear vision of our PM, emphasis on execution, professional decision-making, global collaboration, and robust support from state governments. India has transitioned from waiting at the bus stop of history to steering the future. Our design and talent pool play a crucial role in this progress, as Vaishnaw notes.

Policies and investments are vital to harnessing Bharat’s true advantage -- its people. India currently encompasses over 20 percent of the global design workforce.

An industry forecast suggests that the world may encounter a shortage of over one million semiconductor professionals by the start of the next decade. India is gearing up to bridge this gap. More than 60,000 users across 350 institutions and startups are utilizing world-class Electronic Design Automation (EDA) tools provided free of charge by the Government of India. In 2025 alone, their usage surpassed 1.2 crore hours.

Startups are invigorating India’s chip design ecosystem, with robust government backing. Mindgrove Technologies is crafting IoT chips built on the indigenously developed SHAKTI processor from IIT Madras. Netrasemi, another startup, recently secured a record Rs 107 crore in funding. This investment marks one of the largest VC infusions in India’s semiconductor design sector, reflecting escalating investor confidence in this domain. Numerous such startups are being cultivated under the Design Linked Incentive (DLI) scheme of the government, the minister added.