India Set to Begin Commercial Chip Production by 2025 – Modi

Prime Minister Narendra Modi has announced that India will begin commercial semiconductor production before the end of 2025, positioning the country as an emerging “global hub” for chip innovation.

Speaking at the launch of the Semicon India conference in New Delhi on Tuesday, Modi revealed that test chips from Micron and Tata were already in production, with full-scale commercial output expected later this year.

“Commercial chip production will begin this year. This reflects how rapidly India is advancing in the semiconductor sector,” he said.

India’s semiconductor market has grown from $38 billion in 2023 to an estimated $45–$50 billion in 2024–2025, with government targets of $100–$110 billion by 2030. Currently, the country is developing 10 semiconductor projects worth about $18 billion in investments, including two advanced 3-nanometre design facilities in Noida and Bengaluru.

Modi noted that India has an advantage in three critical areas: producing components for semiconductor equipment, supplying essential materials such as chemicals and minerals, and offering services ranging from R&D to artificial intelligence, big data, and cloud computing.

He also highlighted India’s skilled workforce, stating that “20 percent of the global semiconductor design talent comes from India.”

The announcement follows Japan’s recent pledge to invest 10 trillion yen ($68 billion) in India, with semiconductor and AI cooperation as key areas of focus.

Modi said India is building a complete semiconductor ecosystem that covers design, manufacturing, and packaging, aiming to be both “self-reliant and globally competitive.”

“Today’s India inspires confidence in the world. When the chips are down, you can bet on India,” he declared.