
India to start commercial chip production by 2025, says PM Modi
NEW DELHI : India will begin commercial semiconductor production by the end of 2025, Prime Minister Narendra Modi said on Tuesday. Modi touted his nation as a future global hub for chip innovation during his speech at the annual Semicon India conference launch. He confirmed that test chips from Micron and Tata were already being produced in the country. “Commercial chip production will begin this year,“ he said. “This reflects how rapidly India is advancing in the semiconductor sector.” India’s semiconductor market has surged from $38 billion in 2023 to between $45 billion and $50 billion in 2024-2025. The government has set ambitious targets of reaching between $100 billion and $110 billion by 2030. The country is currently developing 10 semiconductor projects worth $18 billion in investments. These include two new 3-nanometre design facilities in Noida and Bengaluru, among the most advanced in the world. “Our journey began late, but nothing can stop us now,“ Modi said. India claims an edge in three key areas within the semiconductor industry. The first advantage lies in producing components for semiconductor equipment. The second involves supplying critical materials such as chemicals and minerals. The third covers services ranging from research and development to artificial intelligence, big data and cloud computing. Modi noted that India possesses a significant human capital advantage in this sector. “20% of the global talent in semiconductor design talent comes from India,“ he said. The announcement follows Japan’s recent pledge to boost investment in India to 10 trillion yen ($68 billion). This investment commitment includes semiconductor and artificial intelligence cooperation during Modi’s visit to Tokyo last week. India, the world’s fifth largest and fastest-growing major economy, faces challenges from US President Donald Trump’s punishing 50% tariffs. The country is actively seeking new avenues for economic growth amid these trade pressures. With international chip demand surging but supply chains concentrated in few regions, India is building a complete ecosystem. This ecosystem covers design, manufacturing and packaging to become both self-reliant and globally competitive. “Today’s India inspires confidence in the world,“ Modi was quoted as saying in a government briefing note. “When the chips are down, you can bet on India.” – AFP