India's Chip Ambition Sets New Benchmark With Semicon In four years, since the launch of the India Semiconductor Mission (ISM) in 2021, India has announced a INR 76,000 crore production linked incentive (PLI) scheme, of which nearly INR 65,000 crore has already been committed
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India's semiconductor journey has been gaining strong momentum under the Semicon India Programme. So far, the government of India has approved 10 projects in areas of strategic importance, including high-volume fabrication units (Fabs), 3D heterogeneous packaging, compound semiconductors (including Silicon Carbide – SiC), and outsourced semiconductor assembly and test (OSATs). Staying true to its commitment of positioning India as a global Semiconductor powerhouse, the fourth edition of SEMICON India 2025 has commenced and will be inaugurated by Prime Minister Narendra Modi on 2nd September 2025. "Our aim is to make India one of the top five semiconductor nations by 2032," said Ashwini Vaishnaw, Union Minister of Electronics and Information Technology on the first day of Semicon India.
In four years, since the launch of the India Semiconductor Mission (ISM) in 2021, India has announced a INR 76,000 crore production linked incentive (PLI) scheme, of which nearly INR 65,000 crore has already been committed. Semiconductors are power essential systems in healthcare, transport, communication, defence, and space. As the world moves toward greater digitalization and automation, semiconductors have become integral to economic security and strategic independence.
"Be it design, packaging or fabrication, we as a nation are giving shape to our dream in all these foundational aspects to become self-reliant. Through the Design Linked Incentive (DLI) scheme, 23 chip design projects have been sanctioned to support startups and innovators. Companies like Vervesemi Microelectronics are creating advanced chips for defense, aerospace, electric vehicles, and energy systems, showing that India is no longer just a consumer but a creator," noted a PIB statement.
Electronics and IT Secretary S. Krishnan confirmed that the central government has already committed nearly INR 629 billion (US$7.17 billion)—about 97 percent of the INR 650 billion (US$7.41 billion) earmarked as incentives for semiconductor production under the India Semiconductor Mission. The remaining funds can accommodate only a few smaller projects.The allocated budget has been set aside for chip production, INR 100 billion (US$1.14 billion) for modernizing the Semiconductor Laboratory in Mohali, Punjab, and INR 10 billion (US$114 million) for the design-linked incentive scheme.
"The SEMICON India exhibition will feature nearly 350 exhibitors from across the global semiconductor value chain including six country round tables, four country pavilions, nine states participations and over 15,000 expected visitors providing South Asia's single largest platform for showcasing the latest advancements in the semiconductor and electronics industries" said S Krishnan.
Total approved projects under ISM have reached ten with an investment of INR. 1.60 lakh crore in six states. On 28th August, a major milestone in India's semiconductor journey was achieved with the launch of one of the country's first end-to-end OSAT Pilot Line Facilities in Sanand, Gujarat by CG-Semi, a semiconductor company, is expected to roll out the first 'Made in India' chip from this pilot facility.
