New Delhi: Prime Minister Narendra Modi formally inaugurated SEMICON India 2025 in New Delhi, marking a milestone in India’s ambitious journey towards building a self-reliant and globally competitive semiconductor ecosystem.
Speaking at the event, the Prime Minister emphasised the strategic role of semiconductors in shaping the future world order, drawing a parallel between oil’s dominance in the previous century and chips being the “digital diamonds” of this century.
He pointed out that while petroleum controlled geopolitics and economies in the 20th century, the chip—despite its tiny size—now holds unparalleled power in driving technological advancement, economic progress, and national security across the globe.
PM Modi highlighted the massive growth trajectory of the global semiconductor industry, which currently stands valued at $600 billion and is expected to touch the $1 trillion mark in the near future. Expressing confidence in India’s rising momentum, he assured that the nation would secure a significant share of this trillion-dollar market.
Reflecting on the country’s rapid strides, Modi recalled the journey of the SEMICON India initiative launched in 2021. Within just four years, India has gone from conceptualising its semiconductor ecosystem to approving multiple manufacturing plants, with ten major projects already underway. Collectively, these projects have attracted investments exceeding $18 billion (₹1.5 lakh crore), signalling the growing trust of global markets and technology leaders in India’s semiconductor capabilities.
One of the key themes of PM Modi’s speech was “speed and efficiency,” especially in a highly competitive industry where accelerated timelines and systematic approvals determine success.
He lauded the role of the National Single Window System, which eliminates lengthy paperwork by streamlining central and state-level clearances under one digital platform, thus enabling investors and manufacturers to shift rapidly from “file to factory” and begin “wafer work.”
Supporting these efficiency measures, dedicated semiconductor parks are being established with plug-and-play models, comprising ready access to land, modern power and water supply, connectivity to ports and airports, and highly skilled workforce availability.
The Prime Minister showcased India’s holistic approach, where incentives such as the Production-Linked Incentive (PLI) scheme and the Design Linked Incentive (DLI) scheme are being leveraged to create end-to-end value chains.
He moved beyond the notion of India being a backend service hub and highlighted that the country is decisively transitioning into a “full-stack semiconductor nation”, spanning the entire spectrum of design, manufacturing, testing, packaging, and IP creation.
To demonstrate real progress, PM Modi pointed out recent milestones: CG Power’s pilot plant commenced operations in late August 2025, Kaynes’ plant is ready for rollout, while companies like Micron and Tata have already started producing test chips on Indian soil. This, he affirmed, is a precursor to large-scale commercial production starting within this year itself.
The Prime Minister further underscored that India’s semiconductor journey is not confined to fabs alone but is creating a comprehensive ecosystem. Advanced design centres in Noida and Bengaluru are already working on next-generation chips capable of hosting billions of transistors, which will power emerging immersive technologies, AI, quantum computing, and futuristic digital solutions.
As semiconductors remain dependent on critical minerals, Modi also drew attention to the National Critical Mineral Mission, launched to secure steady domestic supplies of rare minerals crucial for chipmaking. Over recent years, this mission has made tangible progress, helping India reduce dependency on international supply shocks and reinforcing trust in its semiconductor mission.
PM Modi devoted a significant focus to young entrepreneurs, start-ups, and MSMEs, describing India’s youth as the “largest human capital factory” for the world. With Indian engineers already accounting for 20 percent of the global semiconductor design workforce, the government is determined to channel this talent by restructuring the DLI scheme and supporting initiatives like the Chips-to-Start-Up Program.
This focus on innovation will ensure that Indian start-ups not only design and prototype chips but also create indigenous intellectual property (IP), fostering global leadership. In his words, India’s semiconductor mission is entering its next-generation phase, where the “design is ready, the mask is aligned,” and now the challenge lies in “precision execution and delivery at scale.”
Union Electronics and IT Minister Ashwini Vaishnaw highlighted India’s unique positioning as a trustworthy player committed to respecting IP rights, supporting co-development, and strengthening supply chains alongside global partners. This reliable framework, he argued, explains why India is attracting investments that other regions might lose due to rising geopolitical risks.
During SEMICON India 2025, twelve MoUs were signed, focusing on critical areas like skill development, product innovation, joint R&D, and capability expansion. To boost funding for high-risk, high-return ventures, the government also announced the Deep Tech Alliance, with nearly $1 billion in venture capital already mobilised. While the alliance will initially focus on semiconductors, it is also designed to extend into adjacent sunrise technologies such as clean energy, biotech, quantum, and space—ensuring India’s leadership in the wider deep-tech domain.
On the manufacturing front, Vaishnaw reported steady progress with the modernisation of the Semiconductor Laboratory (SCL) in Mohali, aimed at enhancing domestic tape-out capacity and increasing India’s ability to deliver next-generation chips.
Building upon lessons from ISM 1.0, the government will soon launch ISM 2.0, an extended support framework covering fabs, outsourced semiconductor assembly and testing (OSAT) facilities, capital equipment, and raw materials—effectively strengthening India’s position in the entire semiconductor value chain.
Importantly, the government has set exports as a central goal for upcoming projects, underlining India’s cost competitiveness, with overall production estimated to be already 15–30% cheaper than global benchmarks.
Concluding on an optimistic note, PM Modi reiterated that India’s semiconductor mission is a long-term strategic commitment—and not a short-term industrial policy push. He called upon all states to competitively build their semiconductor clusters, promising that policy reforms will continue under the mantle of “Reform, Perform, Transform”.
He added that soon the world will recognise chips as “Designed in India, Made in India, and Trusted by the World.” The presentation of India’s first-ever “Made in India” chips from a pilot line to the Prime Minister by Minister Vaishnaw was a symbolic moment, marking the tangible translation of vision into reality.
