India will begin commercial semiconductor production by the end of 2025, Prime Minister Narendra Modi announced on Tuesday, positioning the country as a future "global hub" for chip innovation and manufacturing.
Speaking at the launch of the annual Semicon India conference in New Delhi, Modi revealed that test chips from major players like Micron and Tata are already in production.
“Commercial chip production will begin this year,” he said, calling the development a reflection of how rapidly India is advancing in the sector.
India's semiconductor market has grown from $38 billion in 2023 to an estimated $45–50 billion in 2024–2025, with the government targeting $100–110 billion by 2030. The country is currently developing 10 semiconductor projects worth $18 billion in investments, including two cutting-edge 3-nanometre design facilities in Noida and Bengaluru.
Modi acknowledged India’s late start in the industry but expressed strong confidence in its future. He highlighted the nation’s competitive edge in three key areas: manufacturing components for semiconductor equipment, supplying critical materials such as chemicals and minerals, and offering advanced services including R&D, AI, big data, and cloud computing.
He also pointed to India's talent pool, noting that 20 percent of the global workforce in semiconductor design originates from India.
The announcement comes on the heels of a visit to Tokyo last week, during which Japan pledged 10 trillion yen ($68 billion) in investments in India, including cooperation in semiconductor and AI sectors.
As the world’s fifth-largest and fastest-growing major economy, India has faced economic strain in recent years due to U.S. tariffs under President Donald Trump. The country is now aggressively seeking new avenues of growth, with semiconductors at the center of its high-tech ambitions.
With global chip demand rising and supply chains heavily concentrated in a few regions, India is building what it calls a “complete ecosystem” for semiconductors — spanning design, manufacturing, and packaging — to become both self-reliant and globally competitive.
“Today’s India inspires confidence in the world,” Modi said in a government briefing. “When the chips are down, you can bet on India.”
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