'Made In India Chip Coming This Year', Union Minister Ashwini Vaishnaw Confirms At World Economic Forum Davos

Union Minister Ashwini Vaishnaw announced that India’s first ‘Made in India’ semiconductor chip will roll out this year, marking a major milestone for the country’s burgeoning semiconductor ecosystem, reported Business Standard.

Speaking on the sidelines of the World Economic Forum (WEF) in Davos on Wednesday (22 January), Vaishnaw highlighted the growing confidence of industry stakeholders in India’s semiconductor programme.

“Our first ‘Made in India’ chip will be rolled out this year, and now we are looking at the next phase where we can get equipment manufacturers, material manufacturers, and designers in India,” Vaishnaw said.

The chip was initially expected to launch in December 2024, following an earlier announcement at last year’s WEF. Vaishnaw emphasised the transformative efforts needed to meet the industry’s high purity standards, moving from parts per million to parts per billion purity levels.

India’s semiconductor journey began in December 2021 when Prime Minister Narendra Modi approved the Semicon India programme with an outlay of Rs 76,000 crore.

This initiative aims to create a robust semiconductor and display manufacturing ecosystem by providing financial support to companies investing in these areas.

The government has also established the India Semiconductor Mission (ISM), an independent business division within Digital India Corporation, to lead long-term strategies for semiconductor development.

The ISM has been granted administrative and financial autonomy to focus on building display manufacturing facilities and strengthening the semiconductor design ecosystem.

India is attracting significant foreign investments to bolster its semiconductor ambitions. A few are listed here:

• NXP Semiconductors plans to invest over $1 billion to expand its R&D efforts in India.

• Analog Devices is collaborating with the Tata Group to explore manufacturing opportunities.

• Micron Technology is setting up a $2.75 billion assembly and testing plant in Gujarat, which is expected to create 5,000 direct jobs and 15,000 community jobs.

India’s semiconductor market is expected to grow to $63 billion by 2026, according to Reuters. This rapid expansion underlines the strategic importance of the sector in positioning India as a global semiconductor hub.