Prime Minister Narendra Modi announced a transformative leap in India’s semiconductor ambitions, revealing that 10 projects worth over USD 18 billion (Rs 1.5 lakh crore) are underway, positioning India to capture a significant share of the USD 1 trillion global chip market. Speaking at the 'Semicon India - 2025' conference, Modi outlined bold plans for the next phase of the India Semiconductor Mission and a revamped Design-Linked Incentive (DLI) scheme, signaling India’s intent to become a full-stack semiconductor powerhouse.
"The day is not far when the smallest chip made in India will drive the biggest change in the world," Modi declared, emphasizing a vision of "Designed in India, Made in India, Trusted by the World." With representatives from 50 countries at the conference, Modi highlighted India’s growing global trust and its unique blend of innovation and youth power as key drivers of its semiconductor ecosystem.
Modi underscored the critical role of semiconductors, calling them "digital diamonds" that will define the 21st century, much like oil shaped the previous one. With the global semiconductor market projected to exceed USD 1 trillion in the coming years, India is poised to claim a substantial stake, driven by its rapid progress since the Semicon India programme’s launch in 2021. The country approved its first semiconductor plant in 2023, followed by several more in 2024, and cleared five additional projects in 2025.
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"India’s policies are not short-term signals but long-term commitments," Modi assured investors, inviting them to join India’s semiconductor journey. He highlighted the National Single-Window System, which streamlines approvals from both central and state governments, and the development of semiconductor parks with plug-and-play infrastructure, including land, power, connectivity, and access to skilled workers. Combined with Production-Linked Incentive (PLI) schemes and design-linked grants, these initiatives are attracting significant investments.
Modi emphasized speed as a critical factor in the semiconductor industry, stating, "The shorter the time from file-to-factory, the lesser the paperwork, the sooner wafer work can begin." This approach has already yielded results, with CG Power’s pilot plant operational since August 28, 2025, and Kaynes Technology’s pilot set to commence soon. Micron Technology and Tata Electronics are producing test chips, with commercial production expected to start within the year.
India’s semiconductor mission is not limited to a single aspect but aims to build a comprehensive ecosystem covering design, manufacturing, packaging, and high-tech devices. Modi highlighted advanced chip design centers in Noida and Bengaluru, which are developing cutting-edge chips capable of storing billions of transistors to power emerging technologies like immersive digital experiences.
Addressing global challenges in the semiconductor sector, Modi pointed to India’s National Critical Minerals Mission, which aims to secure domestic supplies of rare minerals essential for chip production. "While steel builds physical infrastructure, critical minerals are the foundation of our digital infrastructure," he said, noting significant progress in this area over the past four years.
Modi also announced plans to restructure the DLI scheme to better align with India’s semiconductor goals, though he did not elaborate on specifics. He emphasized that India’s late entry into the sector would not hinder its progress, stating, "Nothing can stop India now." The country is advancing alongside the world’s most cutting-edge technologies, ensuring its chips remain globally competitive.
The Prime Minister’s vision extends beyond self-reliance to global leadership, with India aiming to produce chips that power the world’s most advanced technologies. By fostering innovation, streamlining processes, and building robust infrastructure, India is rapidly transforming into a semiconductor hub, ready to deliver at scale and shape the future of the global digital economy.
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