2025 India to Begin Commercial Chip Production by End of 2025

India will commence commercial semiconductor production by late 2025, Prime Minister Narendra Modi announced on Tuesday, positioning the country as a potential “global hub” for chip innovation.

Speaking at the Semicon India conference in New Delhi, Modi revealed that test chips from Micron and Tata are already in production.
“Commercial chip production will begin this year,” he said, underscoring the speed at which India is advancing in the semiconductor sector.

The Indian semiconductor market has grown from $38 billion in 2023 to an estimated $45–50 billion in 2024–2025, with government targets set at $100–110 billion by 2030. Currently, 10 semiconductor projects worth $18 billion are underway, including two state-of-the-art 3-nanometre design facilities in Noida and Bengaluru.

“Our journey may have started late, but nothing can stop us now,” Modi declared.

According to the Prime Minister, India holds an edge in three critical areas:

• producing components for semiconductor equipment,

• supplying essential materials such as chemicals and minerals, and

• providing services in R&D, AI, big data, and cloud computing.

He also highlighted India’s “human capital advantage,” noting that 20 percent of the world’s semiconductor design talent is of Indian origin.

The announcement follows Japan’s pledge of 10 trillion yen ($68 billion) in new investment, covering semiconductors and AI, during Modi’s recent visit to Tokyo.

As the world’s fifth-largest and fastest-growing major economy, India aims to build a self-reliant and globally competitive semiconductor ecosystem, spanning design, manufacturing, and packaging.

“Today’s India inspires confidence in the world,” Modi said in a government briefing. “When the chips are down, you can bet on India.”