India will be poised to capture a significant portion of the estimated $1 trillion global semiconductor market in the years to come, Prime Minister Narendra Modi declared on Tuesday. Addressing the launch of the Semicon India 2025 Summit, PM Modi referred to the semiconductor chip as the new “digital diamonds,” pointing to its strategic value to the future economy.
The Prime Minister mentioned the success achieved under the India Semiconductor Mission, announced in 2021, that has so far drawn investments of $18 billion (₹1.5 lakh crore). “While CG Power has launched the first pilot line, Kaynes will begin soon. Micron and Tata are already building test chips,” said Modi. The first semiconductor chips produced in India are to come out by year-end from CG Semi Private Limited’s pilot line in Sanand in Gujarat.
In a symbolic gesture, Electronics and IT Minister Ashwini Vaishnaw handed over to Modi the first chips developed and designed in India by six semiconductor companies and student teams. Chips developed in cutting-edge R&D facilities in Noida and Bengaluru now have billions of transistors, bolstering India’s expanding design prowess.
The government is facilitating investors with a single-window clearance system that combines land allotment, power supply, logistics, and skilled labour. “Less paper, more wafer work is possible,” Modi asserted, highlighting that India’s policies are commitments in the long term and not short-term inducements. Referring to the latest GDP figures, he pointed out that India’s 7.8% rate of growth exceeds expectations worldwide despite economic uncertainty.
The government is also making investments in innovation and talent. EDA tools have been made available to 278 universities, allowing 16,000 students to record more than 13 million design hours. Seventeen student teams have been able to design and tape out chips, and these are now being shipped for fabrication in foundries.
Giving further impetus to the deeptech ecosystem, a $1 billion venture capital fund called the India Deeptech Alliance (IDTA) was launched during the summit. The fund is supported by partners such as Celesta Capital, Bloom VC, Gaja Capital, and Tenacity Ventures, and seeks to catalyse R&D efforts in semiconductors, space, defence, biotech, and the digital economy.
The conference, which is being attended by representatives of 33 nations and more than 50 international CXOs, will include six country-specific roundtables to enhance global relations. With its ambitious policy agenda, strong pipeline of investments, and increasing pool of talent, India is putting itself on the map as the next world semiconductor leader.
