India’s Semiconductor Mission: A Bold Leap into the Future
Prime Minister Narendra Modi is setting his sights on propelling India into the top league of advanced semiconductor manufacturing, a move described by The New York Times as a “giant scale of ambition” to capitalise on the global push to reduce dependence on China.
India, which has no prior history in chip fabrication and minimal access to the hyper-specialised engineers and equipment needed for the task, is now aiming to establish semiconductor production sooner rather than later. For context, Taiwan’s TSMC and other industry leaders took decades—backed by massive government funding and billions in capital investment—to reach their current position.
Union IT Minister Ashwini Vaishnaw points to Dholera, Gujarat, as the designated home for India’s first “Semicon City”. With large chemical plants nearby to supply essential gases and liquids, along with strong seaport and rail connectivity, Dholera is being positioned as a strategic manufacturing hub.
In July, Modi pledged 50% financial assistance for companies setting up semiconductor fabrication units in India. Speaking at SemiconIndia 2023 in Gandhinagar, he reaffirmed that policy reforms are being rolled out to accelerate growth in the sector, backed by India’s skilled talent pool.
The government’s strategy includes launching semiconductor courses in over 300 colleges to produce more than 100,000 chip design engineers within five years, and initiatives such as the National Quantum Mission. Billions of dollars are being offered to build a complete semiconductor ecosystem from scratch.
According to the government, India will soon produce microprocessor chips domestically—chips that power nearly all digital devices. While the ambition is bold and the challenge immense, it underscores Modi’s confidence in making India a major force in advanced technology manufacturing.
Currently, almost all high-end logic chips are made in Taiwan. Even the U.S., despite President Joe Biden’s CHIPS Act, is facing hurdles in setting up fabs with TSMC in Arizona. Against this backdrop, India’s rapid rise in the semiconductor race could redefine the global technology supply chain.
India’s recent achievements—such as the Chandrayaan-3 lunar landing at the Moon’s south pole and its leadership at the G20 Summit—have further boosted the nation’s tech ambitions. Modi has positioned India as a trusted supply chain partner for nations seeking an alternative to Beijing’s dominance.
