India Set to Launch First Home-Made Semiconductor Chips in 2025

India is on the brink of a historic technology breakthrough, with the country’s first indigenously manufactured semiconductor chips expected to roll out by late 2025. Union IT Minister Ashwini Vaishnaw hailed the development as a “dream come true,” underscoring its importance for India’s quest for technological self-reliance and its position in the global tech supply chain.

This achievement comes less than four years after the government launched the India Semiconductor Mission (ISM) in December 2021, backed by an unprecedented ₹76,000 crore ($10 billion) incentive package. The initiative was designed to build an entire semiconductor ecosystem — from chip design to fabrication, assembly, testing, and packaging — ensuring India is not just assembling chips, but mastering the full process.

Mega Projects Underway

Six major semiconductor facilities are already under construction across the country. The most prominent is Tata Electronics’ ₹91,000 crore fabrication plant in Dholera, Gujarat, built in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation. Once operational, it will produce 28nm to 90nm chips for automotive, telecom, industrial, and AI applications, with an output capacity of 50,000 wafers per month.

In Sanand, Gujarat, Micron Technology is building the world’s largest semiconductor assembly and testing unit at a cost of $2.75 billion, set to be operational by December 2025. This facility will create 5,000 direct jobs and 15,000 indirect jobs, converting wafers into finished integrated circuits and memory products for global markets.

Adding to the momentum, the central government has recently approved four new semiconductor projects worth ₹4,954 crore in Odisha, Punjab, and Andhra Pradesh, aimed at expanding regional manufacturing hubs and diversifying the country’s chip production footprint.

Production Timeline and Vision

The first Made-in-India chip is expected between September and October 2025. The Tata Dholera fab will begin with sample production late in 2025 before ramping to commercial scale in 2026. The initial focus on mature node chips (28nm to 90nm) is a strategic move, as these account for nearly half of the world’s semiconductor demand, especially in automotive, industrial, and telecom sectors.

Building a Complete Ecosystem

The government’s approach extends beyond factories. Special semiconductor-grade industrial parks are being developed, with Dholera Special Investment Region serving as a model — featuring 1,500 residential units, schools, hospitals, desalination plants, and fire stations to support industry workers. Advanced chip design centres in Noida and Bengaluru are equipping Indian engineers to work on cutting-edge technologies, with over 270 colleges and 70 start-ups already benefiting from these resources.

Global Partnerships and Strategic Edge

India’s rise in semiconductors is powered by strategic collaborations with global giants like Applied Materials, Lam Research, and Japanese and Israeli tech firms, ensuring technology transfer and operational excellence. This aligns with India’s role as Vice Chair of the Indo-Pacific Economic Framework’s Supply Chain Council and its partnership in the QUAD Semiconductor Supply Chain Initiative.

The effort also connects to the India AI Mission, which will provide 34,000 GPUs at subsidised rates, enabling start-ups, researchers, and universities to build AI models that run on Indian-made chips.

Why It Matters Globally

The move comes at a time when global semiconductor supply chains are still recovering from disruptions caused by the pandemic and geopolitical tensions. By focusing on both domestic demand and export markets, India aims to become a trusted alternative manufacturing base, reducing dependence on East Asian production hubs.

Looking towards Vision 2047, when India aspires to be a developed nation, semiconductors are expected to form a backbone of its high-tech economy. Plans are already in motion for two more Tata fabs in Gujarat and a “SEMICON 2.0” policy to attract more equipment makers and raw material suppliers. Training 85,000 semiconductor professionals is part of the long-term workforce strategy to ensure a steady talent pipeline.

Minister Vaishnaw summed up the ambition best: “Every device in the world will one day have an Indian-made chip.” When the first batch rolls out in 2025, it will not just be a technological feat — it will be a national statement that India is ready to lead in the technology of the future.