Highlights:
- India aims to launch its first domestically produced semiconductor chips by 2025 as part of its push for technological self-reliance.
- The government has allocated ₹76,000 crore under the Semicon India program to boost semiconductor and display manufacturing.
- Projects worth ₹1.5 lakh crore have been approved, with two manufacturing plants already under construction.
- A new 'Semicon 2.0' policy will streamline efforts, focusing on attracting equipment manufacturers, material suppliers, and designers.
- India’s semiconductor market is expected to reach $63 billion by 2026, driven by demand from sectors like telecom, automotive, and consumer electronics.
India is gearing up to establish itself as a global hub for semiconductor manufacturing, with plans to roll out its first indigenous semiconductor chips by 2025. This milestone is part of the government’s broader initiative to boost technological self-reliance and reduce dependence on imports.
The production timeline has been confirmed with ongoing construction of semiconductor facilities in key states. These plants are expected to cater to various sectors, including telecommunications, automotive, and consumer electronics. This move also aligns with the government’s vision of leveraging the growing demand for semiconductors in a digitally driven economy.
In 2021, the government approved the Semicon India program with an outlay of ₹76,000 crore to incentivize investments in semiconductor and display manufacturing. This includes financial support for companies entering the sector and a focus on building a comprehensive design and production ecosystem. A subsequent policy update, referred to as ‘Semicon 2.0,’ is expected to streamline the process further by encouraging participation from equipment manufacturers and raw material suppliers.
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To facilitate these ambitious goals, multiple semiconductor manufacturing and R&D facilities are under development. The government has approved projects worth ₹1.5 lakh crore, which aim to create significant employment opportunities and attract global attention to India’s semiconductor capabilities. Additionally, collaborations are being explored to bolster technological expertise and infrastructure.
India’s semiconductor market is projected to grow rapidly, with estimates suggesting a valuation of $63 billion by 2026. The government and industry leaders are united in their efforts to position India as a competitive player in the global semiconductor supply chain.
This strategic focus on semiconductors is a significant step toward realizing the vision of a self-reliant India, where advanced technology manufacturing becomes a cornerstone of economic growth. The coming years will determine how effectively these initiatives translate into tangible outcomes, with the first ‘Made in India’ chips serving as a benchmark for the country’s progress.
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