The Government of India is proud to inaugurate Vikram-32 by Honourable Prime Minister, Sri Narendra Modi. It is the first Made-In-India semiconductor chip, widely used in the development of the latest technologies. Today, it was launched by Shri Ashwini Vaishnaw and is a crucial step towards making a self-reliant India.
India is ready to transform its role in the semiconductor industry across the globe. Previously, it was one of the major consumers, but now it has begun manufacturing these chips. These will not only be used within the boundaries but will also be exported to other countries, boosting trade in the region.
It is one of the ambitious shifts driven by the increasing domestic demand, geopolitical considerations, and the vibrant framework of the government’s initiatives. The government ensures better opportunities in diverse fields such as the education sector, the technology industry, and India’s economy. Moreover, the ripple effects are supposed to create unparalleled possibilities in the educational domain.
Why SEMICONDUCTOR CHIP PRODUCTION MATTERS TO India AND THE WORLD?
Semiconductor chips are the backbone, as it is required in the manufacturing of modern-day electronics. Whether it is the defence system, Smartphone, medical equipment, or electric vehicles, semiconductor chips are crucial to integrating the smart functions in these devices or machines.
The demand for these chips is soaring globally. Nations realised its importance due to disruptions in supply during COVID-19 and at times due to geopolitics. Hence, localising its production is a much better solution to meet demand across India and the world. Also, it will reduce Bharat’s dependence on other nations by becoming a creator. It will also reduce imports, help generate jobs, and become a key player in the global tech supply chain.
The Catalyst for the Change
The primary alert to the global economy was during the pandemic of 2019, which exposed the vulnerability of global supply chains. This triggered a rush among the countries. Thus, India made sure to localise semiconductor chip production under the initiative of Atmanirbhar Bharat to reduce dependence on foreign products and foster domestic production of the chips.
Big Players, Bigger Plans
As per the public announcement made by the Prime Minister of India, “Made in India” semiconductor chips would be available in the market by the end of 2025. The chip was launched on 2nd September 2025, and it is a great step toward becoming a global semiconductor hub.
ISM (India’s semiconductor mission) is not just a government-driven initiative but an interest of domestic and global business giants. Investments are coming in from the US-based Micron Technology for setting up a plant in Gujarat for testing and chip assembly, where the Indian government will cover 70% of the expense.
Alternatively, Tata Electronics is also contributing to the semiconductor chip manufacturing drive by setting up a chip fabrication unit in association with Taiwan’s Powerchip Semiconductor Manufacturing Corp. Simultaneously; India is making strides in the design-linked incentive (DLI), semiconductor design startups, and many more to position the country as the global chip design hub.
Facing Challenges
With the initiative of Atmanirbhar Bharat, India has incredible momentum to progress in this field. But the journey will not be complete without overcoming the hurdles. There is a significant need for skilled professionals, capital investment, power infrastructure, and experts with technology expertise. The semiconductor chip-making industry is dominated by the global giants like US-based Intel, Taiwan’s TSMC, and South Korea’s Samsung, which provide cutthroat competition. Also, the chip manufacturing industry has a long gestation period, maybe 3 to 4 years. Despite all challenges, India is poised to succeed with its strategic planning.
Strategic Movement
India’s semiconductor chip-making drive is directly related to its sovereignty and security, and it isn’t limited to the economy. Digital warfare and geopolitical uncertainties are the reasons behind controlling the supply chain. Therefore, it is focused on nurturing a domestic manufacturing industry to reduce its vulnerability.
Conclusion
India’s power play in semiconductor chip making is a crucial and bold leap towards technological independence. The road towards gaining a global position is long, but the steps are in the right direction. The dreams of a silicon self-reliant India have begun to shape.