India Set To Become Global Hub For Semiconductor Value Chain: PM Modi

Prime Minister Narendra Modi, on Wednesday, underscored India’s rapid progress in the semiconductor sector and cited Union Minister Ashwini Vaishnaw’s article, which says the nation is poised to emerge as a major hub for the global semiconductor value chain in the coming decade.

The article highlights that semiconductors are as foundational as steel, power, telecom, and chemicals.

They form the invisible engine behind smartphones, cars, trains, satellites, defence systems, artificial intelligence, and medical equipment.

With India’s electronics manufacturing now valued at ₹12 lakh crore annually and more than 65 crore smartphone users, demand for chips is soaring.

Vaishnaw noted that India is also building AI-based systems, electric vehicles, and data centres, all of which rely heavily on semiconductor chips. This surge in innovation makes it critical for the nation to strengthen its role in the global supply chain.

From ‘Missed Bus’ to ‘Made in India’

“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,” Vaishnaw wrote.

The India Semiconductor Mission has already approved 10 plants, and construction is moving swiftly. India will produce its first ‘Made in India’ chip this year, and four more units will begin production within the next twelve months.

Global companies such as Applied Materials, Lam Research, Merck and Linde are investing in supply chains and supporting facilities.

According to the article, this ecosystem approach reflects the Prime Minister’s long-term vision for Bharat’s semiconductor future.

India currently contributes more than 20 per cent of the global semiconductor design workforce. With an estimated shortage of over one million professionals worldwide by the next decade, India is positioning itself to fill the gap.

Over 60,000 users across 350 institutions and startups have accessed Electronic Design Automation tools free of cost. They logged more than 1.2 crore usage hours in 2025.

Startups are also energising the ecosystem. Mindgrove Technologies is developing IoT chips using IIT Madras’s SHAKTI processor, while Netrasemi recently secured ₹107 crore in funding, the largest VC investment in India’s semiconductor design space. The Design Linked Incentive scheme supports many such ventures.

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