In the early days, computers were giant machines that filled the entire room. They ran on thousands of vacuum tubes working like the “on-off” switches of their time. They looked more like an old telephone exchange than the sleek devices we use today. Fast forward to today, and far more power sits inside a chip smaller than your fingernail, driven by billions of transistors. These chips run mobile phones, cars, trains, refrigerators, TVs, factory machines and aeroplanes, and guide satellites in space. They’re now so small they sit on your finger in a smart ring, tracking your heart health. That is the magic of semiconductors.
For a nation to progress, it must master the key sectors that shape its growth. These foundational sectors include steel, power, telecom, chemicals, transport and semiconductors. They are the hidden engines inside almost everything we use. Smartphones, cars, trains, medical equipment, defence systems, power grids, satellites, and artificial intelligence.
Just as steel is the base for building factories, bridges, and railways, semiconductors are the base for the digital economy. Without chips, there can be no modern communication, no data processing, no AI, no renewable energy systems, and no secure defence. A nation that cannot design and produce semiconductors risks dependence on others for its most basic needs, from healthcare to security. Becoming strong in semiconductors is about much more than an industry. It is about shaping our own future.
The pandemic was a stark reminder of the importance of chips. As global chip supply chains faltered, production of various industries was affected. Sectors such as the auto industry, networking devices, and consumer electronics were the most affected.
Semiconductors now lie at the heart of global geopolitics. With chip-making concentrated in just a few regions, even minor disruptions can ripple across the world. A power failure in one place or a factory accident in another can stall supplies. This can slow down industries and affect economies and security everywhere.
The recent focus on rare earth magnets is a stark reminder of how control over critical resources can shape global power. Similarly, semiconductors have become a crucial resource of the digital age.
The demand for semiconductors is only going to rise in future. Our own consumption and production of electronics is expanding at an unprecedented pace. India today has over 65 crore smartphone users, and our electronics manufacturing is touching Rs 12 lakh crore annually.
At the same time, we are also developing AI-based systems, data centres, and electric vehicles that require semiconductor chips. This surge in both demand and innovation makes it essential for Bharat to secure its place in the global semiconductor value chain.
For decades, India was told it had “missed the bus” on semiconductors. That refrain
is no longer true. Under the India Semiconductor Mission, 10 semiconductor plants have been approved. The construction work of the plants is progressing at a fast pace. Today, we can confidently say that the first “Made in India” chip will be out this year. A pilot production line in one of the units has already started in Sanand, and within a year, we expect four more units to go into production. Global leaders such as Applied Materials, Lam Research, Merck, and Linde are investing in supporting factories and supply chains. This ecosystem approach reflects Prime Minister Narendra Modi’s focus on long-term growth of the industry in Bharat.
A combination of factors led to this remarkable success in such a short time span — the clear vision of our PM, focus on execution, decision making in the hands of professionals, global cooperation, and strong support from state governments. India has moved from waiting at the bus stop of history to driving the future. Our design and talent pool are playing an important role in this.
Policies and investments are critical to harnessing Bharat’s true edge — its people. India currently has more than 20 per cent of the global design workforce. According to an industry estimate, the world is expected to face a shortage of over one million semiconductor professionals by the start of the next decade. India is preparing to fill this gap. More than 60,000 users across 350 institutions and start-ups are using world-class Electronic Design Automation (EDA) tools provided free of cost by the Government of India. In 2025 alone, their usage has exceeded more than 1.2 crore hours.
Start-ups are energising India’s chip design ecosystem with strong government support. Mindgrove Technologies is developing IoT chips built on the indigenously developed SHAKTI processor from IIT Madras. Netrasemi, another start-up, recently secured a record Rs 107 crore in funding. This is one of the largest VC infusions in India’s semiconductor design space, reflecting growing investor confidence in this sector. Many such start-ups are being nurtured under the Design Linked Incentive (DLI) scheme of the government.
At the Semiconductor Laboratory (SCL) in Mohali, college students from 17 institutes have already produced 20 chips. More such chips will be ready in the coming months. This kind of talent development will place Bharat in a strong position in the semiconductor industry. SCL is also being modernised with the dreams of young innovators in mind to ensure that India’s talent can move from the classroom to the cleanroom.
Global leaders are also investing in India’s talent. Lam Research is going to train 60,000 engineers in India. Applied Materials, AMD, and Microchip are committing $1.1 billion for R&D. Partnerships with IISc, IITs, and others are ensuring a strong lab-to-fab workforce. India is also working closely with partners in the US, Japan, the EU, and Singapore to build future-ready talent. This mix of local talent and global collaboration ensures that Bharat is not only building for itself but for the world too.
Bharat’s semiconductor journey is part of the larger vision of PM Modi. It began with Digital India, a mission that built digital infrastructure and empowered citizens. The India Stack, UPI, Aadhaar, and our telecom networks gave every Indian access to technology at their fingertips. In parallel, we have also strengthened our electronics production ecosystem. Now we are developing the manufacturing ecosystem for semiconductors, electronic components, and equipment.
The Semicon India Summit 2025, which was inaugurated by the Prime Minister, marks the continuation of this journey. This year, more than 500 global industry leaders from 48 countries are participating, compared to about 100 last year. The world is coming to our doorstep because steady Bharat is the hope of a world struggling with uncertainty. Dedicated pavilions from Japan, South Korea, Singapore and Malaysia will drive meaningful collaboration.
Our goal is to make India a “product nation”. The output from our semiconductor plants will serve critical sectors such as telecom, automotive, data centres, consumer electronics, and industrial electronics, not just for India, but for the whole world.
Over the next decade, as our semiconductor units achieve maturity and scale, India is poised to emerge as a competitive hub for the entire semiconductor value chain.
The writer is Union Minister for Electronics and Information Technology
