PM Narendra Modi Inaugurates SEMICON® India 2025: A Historic Milestone in India’s Semiconductor Revolution
India has officially entered a new chapter in its technological evolution with Prime Minister Narendra Modi inaugurating SEMICON India 2025 at Yashobhoomi in New Delhi on September 2, 2025. This landmark event represents more than just a conference; consequently, it marks India’s bold proclamation to the world about its semiconductor ambitions .
India’s Digital Diamond Moment
The Prime Minister’s powerful analogy set the tone for India’s semiconductor future: “Oil was black gold, but chips are digital diamonds” . This metaphor captures the essence of the 21st century’s power dynamics, where tiny semiconductors drive massive global transformations. Moreover, Modi’s confident assertion that “the day is not far when the world will say – Designed in India, Made in India, Trusted by the World” signals India’s determined trajectory from consumer to creator in the global semiconductor ecosystem .
Furthermore, the Prime Minister emphasized that India’s smallest chip will soon drive the world’s biggest change . This statement reflects the immense potential that industry experts see in India’s emerging semiconductor capabilities.
Record-Breaking Global Participation
The event witnessed unprecedented international engagement, demonstrating global confidence in India’s semiconductor journey. Additionally, over 20,000 participants registered for the three-day conference, with delegates from 48 countries joining the proceedings . The exhibition featured nearly 1,275 booths, representing a remarkable increase from 650 booths in the previous year .
Meanwhile, 50 global CXOs participated alongside more than 350 exhibitors from across the semiconductor value chain . The international presence included six country roundtables, four international pavilions, and dedicated workforce development and startup pavilions . This level of participation underscores India’s growing prominence as a semiconductor destination.
India’s First Made-in-India Chip: The Vikram Processor
In a moment of historic significance, Union Minister Ashwini Vaishnaw presented the Vikram 32-bit processor to Prime Minister Modi, marking India’s first fully indigenous semiconductor chip . The processor, developed by ISRO’s Semiconductor Laboratory in collaboration with the Vikram Sarabhai Space Centre, represents a crucial milestone in India’s technological self-reliance .
The Vikram 3201 processor showcases impressive technical specifications. Specifically, it operates on a 32-bit architecture with floating-point support and includes 152 instructions with micro-programmed control . Furthermore, it features thirty-two 32-bit registers and can address up to 4096M words of memory while operating across extreme temperatures from -55°C to +125°C . The chip runs at 100 MHz frequency with single 3.3V supply operation and consumes less than 500 mW of power .
Additionally, this space-grade processor represents an advancement from the earlier Vikram 1601, which has powered ISRO’s launch vehicles since 2009 . The new processor underwent successful validation during the PSLV-C60 mission as part of the Mission Management Computer .
Market Growth and Economic Impact
India’s semiconductor market presents compelling growth projections that justify the massive investments underway. Currently valued at approximately $45-50 billion in 2024-25, the market is expected to reach $100-110 billion by 2030 . This represents a compound annual growth rate of 13-15%, positioning India to capture significant value from the global semiconductor market projected to exceed $1 trillion by 2030 .
The economic impact extends beyond market size. As of August 2025, the Union Cabinet has approved 10 semiconductor projects with cumulative investment commitments of ₹1.60 trillion ($18.23 billion) . These projects span six states and cover the entire semiconductor value chain from fabrication to assembly and testing.
Strategic Approvals and Infrastructure Development
Union Minister Ashwini Vaishnaw highlighted the rapid progress in India’s semiconductor infrastructure development. Currently, construction of five semiconductor units is advancing at pace, with one pilot line already completed and two additional units expected to commence production in the coming months . The government has committed nearly ₹629 billion ($7.17 billion) – approximately 97 percent of the ₹650 billion ($7.41 billion) allocated for semiconductor production incentives .
The approved projects include high-volume fabrication units (fabs), 3D heterogeneous packaging facilities, compound semiconductor manufacturing including Silicon Carbide (SiC), and Outsourced Semiconductor Assembly and Test (OSAT) facilities . These strategic investments position India across multiple segments of the semiconductor value chain.
Major Industry Partnerships and MOUs
SEMICON India 2025 witnessed significant industry collaborations through 12 major MOUs and announcements . These partnerships span critical areas of semiconductor development and manufacturing. For instance, Tata Electronics signed agreements with both Merck for manufacturing and packaging capabilities and C-DAC for developing the domestic semiconductor design ecosystem .
Particularly noteworthy is the collaboration between Kaynes Semicon and various partners for India’s first fully localized automotive camera module, involving SPARSH-IQ, 3rdiTech, Focally, and SenseSemi Technologies . Similarly, Kaynes Semicon partnered with Infineon to deliver India’s first MEMS microphone and advanced semiconductor packages .
Furthermore, L&T Semiconductor’s collaborations with IIT Gandhinagar and C-DAC for secure chip development, plus their partnership with IISc Bangalore for a national innovation hub, demonstrate the integration of academia and industry in India’s semiconductor mission .
Global Investment Alliance: $1 Billion Deep Tech Commitment
A significant announcement at SEMICON India 2025 was the launch of the India Deep Tech Investment Alliance (IDTA) with over $1 billion in commitments from global and Indian investors . The alliance includes founding members such as Celesta Capital, Accel, Blume Ventures, Gaja Capital, Ideaspring Capital, Premji Invest, Tenacity Ventures, and Venture Catalysts .
This coalition addresses long-standing funding concerns in India’s deep tech ecosystem. Each member commits to deploying significant capital over 5-10 years into Indian-domiciled deep tech startups across semiconductors, AI, biotechnology, space, defense, and digital economy sectors . Beyond funding, the alliance provides mentorship, customer access, and support for global supply chain integration.
Tata Electronics Leading Manufacturing Push
Tata Electronics has emerged as India’s flagship semiconductor manufacturer with multiple significant projects underway. The company’s ₹91,000 crore ($11 billion) fabrication facility in Dholera, Gujarat, developed in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), represents India’s most ambitious semiconductor manufacturing project .
This 300mm wafer facility will process up to 50,000 wafers per month using mature-node technologies from 110nm to 28nm . The plant will manufacture power management ICs, microcontrollers, display drivers, and high-performance logic chips for automotive, computing, and AI applications . Additionally, Tata’s subsidiary is developing a ₹27,000 crore semiconductor assembly-and-test facility in Jagiroad, Assam .
International Collaboration and Technology Transfer
The event showcased India’s strategic partnerships with global semiconductor leaders. Japan’s presence was particularly significant, with Prime Minister Modi having recently visited Tokyo Electron’s factory during his Japan trip . The CEO of Tokyo Electron participated in SEMICON India 2025, highlighting the strengthening Japan-India semiconductor cooperation .
Furthermore, Singapore’s engagement through the MOU between NIELIT and Singapore Semiconductor Industry Association (SSIA) demonstrates regional collaboration for semiconductor skilling and capacity building . Arizona State University’s partnership with India Semiconductor Mission for scientific and educational collaboration indicates strong US-India ties in semiconductor development.
Customer Experience Evolution in Semiconductor Industry
The semiconductor industry is experiencing a fundamental shift in how companies engage with customers throughout the design and evaluation process. Modern semiconductor companies recognize that customer experience has become a critical differentiator beyond traditional metrics of performance and cost . According to recent analysis, B2B companies leading in customer experience grow revenue twice as fast as their peers and achieve 30% higher customer lifetime value .
The semiconductor sector faces unique CX challenges including short product lifecycles requiring faster onboarding, global distributed design teams seeking self-serve tools, high technical complexity demanding better communication, and long sales cycles that can be significantly shortened through improved customer journeys . Digital platforms are transforming these challenges into competitive advantages by enabling instant onboarding, remote debugging capabilities, and virtual evaluations that eliminate traditional barriers.
Talent Development and Workforce Expansion
India’s semiconductor mission recognizes that success depends fundamentally on building a skilled workforce. The government plans to add one million new semiconductor jobs by 2026 to its existing workforce of 220,000 professionals . This represents a massive scaling of human resources to support the expanding ecosystem.
S. Krishnan, Secretary of MeitY, highlighted the role of Nano Centers in developing 85,000 semiconductor-ready professionals . The emphasis on workforce development reflects understanding that 70-75% of investments in major facilities are taxpayer-funded, making skills development a shared responsibility between government, industry, and academia .
Policy Framework and Regulatory Support
Prime Minister Modi emphasized the importance of reducing bureaucratic friction for investors. The National Single Window System (NSWS) centralizes all approvals from both central and state governments on a single platform . This administrative reform significantly reduces paperwork and accelerates investor onboarding processes.
The PM’s statement that “the less the paperwork, the sooner wafer work can begin” encapsulates India’s commitment to creating an investor-friendly ecosystem . This regulatory efficiency, combined with transparent policies under the India Semiconductor Mission, provides the stability that global investors seek for long-term commitments.
Global Market Context and Competitive Positioning
The global semiconductor market is experiencing robust growth, with projections showing 15% growth in 2025 reaching approximately $728 billion . Memory segments are expected to surge by over 24%, driven by AI infrastructure demand and high-bandwidth memory requirements . This growth environment provides favorable conditions for India’s market entry and expansion.
India’s strategic positioning becomes clearer when considering global supply chain resilience concerns. With Taiwan producing over 60% of the world’s semiconductors and nearly 90% of the most advanced ones , there’s growing recognition of the need for geographic diversification. India offers political stability, democratic governance, English-language capabilities, and a large domestic market that makes it an attractive alternative manufacturing hub.
Future Outlook and Strategic Implications
SEMICON India 2025 marks a pivotal moment in India’s transformation from semiconductor importer to manufacturer and innovator. The convergence of government policy support, private sector investment, international partnerships, and workforce development creates a foundation for sustained growth. With domestic demand projected to reach $100-110 billion by 2030 and global market opportunities expanding, India is positioned to become a significant player in the global semiconductor ecosystem .
The successful inauguration of SEMICON India 2025, combined with the presentation of the first Made-in-India chip and announcement of major investment commitments, sends a clear message to the global semiconductor industry. India is no longer just preparing to enter the semiconductor market – it has arrived, and it’s ready to compete on the world stage. As Prime Minister Modi concluded, India’s semiconductor journey may have started late, but nothing can stop it now .
This historic moment represents more than technological achievement; it embodies India’s broader vision of Atmanirbhar Bharat and positions the country as a trusted partner in the global semiconductor supply chain. The world is indeed ready to build the semiconductor future with India, and India is demonstrably ready to lead that transformation.
