The Indian government’s focus on developing a robust semiconductor industry has been an ongoing journey. Multiple initiatives like the DLI scheme, PLI scheme, and RDI scheme have been initiated to assist startups and companies working with semiconductors, with an objective to accelerate development.

Prime Minister Narendra Modi has on multiple occasions outlined the country’s growing role in the global semiconductor industry, highlighting investments, infrastructure, and future plans. During his address at the SEMICON India 2025 summit in Delhi on Tuesday, he delved into various sectors of the chip ecosystem. 

He emphasised that the sector’s growth reflects global trust in India. “The world is ready to build a future with India.” He added that semiconductors, like oil in the last century, will decide the world’s future.

Modi highlighted that India contributes nearly 20% of global semiconductor design talent and encouraged young innovators and start-ups to make use of initiatives such as the Chips-to-Startup programme. “The government stands shoulder to shoulder with you,” he said.

To build a strong talent pipeline, the government has also placed emphasis on workforce development. Through the Chips to Startup programme, more than 60,000 students have been trained in semiconductor design. Additionally, over 280 institutes and 72 labs have been equipped with EDA tools, creating the world’s largest centralized EDA tool facility for students and researchers.

Domestic Progress and Infrastructure

The Design Linked Incentive (DLI) scheme is playing a central role in strengthening India’s semiconductor ecosystem. The programme provides domestic companies with up to 50% cost support for chip design and 6–4% of net sales turnover assistance, in addition to access to EDA tools, intellectual property (IP), and validation support.

So far, the government has approved ten major projects, including Silicon PAMs and Silicon Carbide PAMs, alongside eight advanced packaging facilities with a combined capacity to produce 24 billion chips annually. In parallel, 23 semiconductor start-ups have been sanctioned under the DLI scheme specifically for design-focused initiatives.

Union IT and railways minister Ashwini Vaishnaw said that construction is underway at five semiconductor units, with one pilot line already producing chips. “Two more units will start production in a few months. The design of five more units is progressing very well,” he added.

Vaishnaw unveiled the country’s first homegrown 32-bit processor chip before the Prime Minister, a milestone in India’s semiconductor drive.

He also emphasised on the participation of the states and the need for a healthy competition among them. He added that it is essential for states like UP, Gujarat, Odisha and more to enter the supply chain in their own way and help accelerate the ecosystem.

The states could help fill gaps in each other’s manufacturing and create a more robust ecosystem. This sentiment was also echoed by Ajit Manocha, president of SEMI, who spoke to AIM on the sidelines of the event.

He emphasised that it is risky for a country the size of India to concentrate everything in a single state. Instead, he pointed out, diversification across multiple regions is essential to build resilience. Manocha drew a parallel with the United States, where for decades the chip industry was heavily centred around Silicon Valley. “If something went wrong there, the entire ecosystem could be disrupted,” he cautioned.

According to him, the US has now corrected that imbalance, with semiconductor activity spreading to several states. “India should also take the same approach,” he said, adding that such a model would strengthen the overall ecosystem, while also distributing the available skilled talent more evenly.

Currently, India’s semiconductor talent base is clustered in a few hubs, but Manocha noted that new opportunities are emerging elsewhere. He highlighted states such as Odisha and Uttar Pradesh, which are not usually associated with semiconductors, as examples of how India could “think out of the box” and expand capacity beyond traditional regions.

Towards a Full-Stack Semiconductor Nation

The PM mentioned that 10 semiconductor projects have been approved, noting the implementation of the National Single Window System aimed at reducing paperwork for investors. 

He stressed upon the development of “plug-and-play infrastructure” including land, power supply, ports, and skilled worker facilities.

Modi said India is moving towards becoming a “full-stack semiconductor nation” and added that the day is not far when “India’s smallest chip will drive the biggest change in the world.” 

He reiterated the launch of CG Power’s pilot plant on August 28 and Kaynes’ upcoming pilot project, with commercial chip launches expected this year.

Vaishnaw spoke about India’s talent pool and training push, noting that 278 universities now have access to advanced EDA tools. “By now, 16,000 engineering students have already worked on these tools for more than 13 million hours,” he said. Chips designed by students were presented to Modi during the event.

The PM also underlined that design centres in Noida and Bangalore are already working on advanced chips capable of storing billions of transistors.

Global Industry Response

Manocha added to Modi’s vision and referred to India’s trajectory as “exponential”. He noted that the semiconductor industry could double to $1.3 trillion in the next 6–7 years, and surpass $2 trillion in 15 years. 

“Ecosystem is [a] prerequisite for growth. If you don’t have [an] ecosystem, companies will not bring mega projects,” he said, stressing that supply chain resilience must stay central to the effort.

Adding to this, Christophe Fouquet, CEO at ASML said India’s entry into chip manufacturing carries wider significance. 

“It represents not only an opportunity for economic growth and job creation, but also an opportunity for national resilience,” he said. 

Additionally, others who talked of investing in India included the $400 million announced by Mark Papermaster, chief technology officer of AMD and the India deep tech alliance fund, spoken about by Sriram Viswanathan, founding partner at Celesta Capital.

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