Prime Minister Narendra Modi’s address at the Semicon India 2025 conference marked a watershed moment in India’s ambition to become a global semiconductor hub. With 10 projects worth over USD 18 billion (Rs 1.5 lakh crore) currently underway, India is signaling its readiness to compete in one of the world’s most strategic and high-value industries.
Modi captured the stakes with a powerful analogy:“Oil was black gold, but chips are digital diamonds. Oil shaped the previous century, but the power of the 21st century lies in the chip.”
Just as oil drove geopolitics and industrial growth in the 20th century, semiconductors today power smartphones, electric vehicles, artificial intelligence, and defense systems. Control over chip production now translates directly to economic and strategic influence.
India’s big leap into a trillion-dollar market
The global semiconductor industry, valued at USD 600 billion, is projected to surpass USD 1 trillion in the coming years. For decades, India’s role was limited to chip design and back-end services, while countries like Taiwan and South Korea dominated manufacturing. That dynamic is changing rapidly.
Since the launch of the Semicon India Mission (ISM) in 2021, the Modi government has fast-tracked the creation of a domestic chip-making ecosystem. By 2023, India approved its first semiconductor plant. In 2024, several more projects were cleared, and in 2025, five additional plants received the green light. Today, 10 projects are actively progressing, reflecting global confidence in India as a competitive manufacturing hub.
To accelerate this growth, the government is developing plug-and-play semiconductor parks offering ready access to land, water, power, and high-speed connectivity. These parks are backed by Production-Linked Incentives (PLI) and a revamped Design-Linked Incentive (DLI) scheme to attract global companies and support indigenous chip design. The goal is clear: India must not only assemble chips but also design and manufacture cutting-edge products, reducing dependence on foreign supply chains.
One of the most striking highlights of Semicon India 2025 was the rise of Assam as an unexpected player in this high-tech revolution. Two chips developed in the state, the Tata OSAT Chip and the Neural Amplifier Frontend IC designed by NIT Silchar, were proudly showcased at the event.
Assam Chief Minister Himanta Biswa Sarma celebrated the moment
“The first Made-in-India chips displayed at #SemiconIndia2025 include two chips from Assam! Assam is moving steadily to ensure it fuels India’s semiconductor journey” , said Sarma. This achievement goes beyond symbolism. It represents a decentralization of India’s tech growth, proving that innovation need not be limited to traditional hubs like Bengaluru or Hyderabad. For the Northeast, especially Assam, this could bring high-skilled jobs, research opportunities, and global investment, integrating the region into the international electronics supply chain.
It also aligns with Modi’s broader vision of balanced regional development, ensuring that India’s digital revolution uplifts every corner of the nation.
Overcoming a late start
India entered the semiconductor race much later than countries like Taiwan, South Korea, and the U.S. Yet Modi’s message was one of optimism and resolve, “Our journey began late, but nothing can stop it now.”
India brings unique strengths to the table: a vast pool of skilled engineers, a booming electronics market, and a government committed to robust policy support. With Micron Technology and Tata Electronics already producing test chips and commercial production expected to begin this year, the transition from planning to manufacturing is well underway.
The road ahead will be challenging. Chip-making demands massive capital investment, advanced technology, and seamless execution. Moreover, global supply chains remain fragile, vulnerable to geopolitical tensions, particularly between the U.S. and China. However, India’s strategy of state-backed incentives, private sector innovation, and global partnerships offers a sustainable pathway to success.
A defining moment for Digital India
India’s semiconductor push is about more than technology. It is about economic sovereignty, national security, and strategic positioning in a world driven by digital power. By striving to become a “full-stack semiconductor nation,” India is taking control of the foundational building blocks of its digital future.
If successful, this revolution will create high-value jobs, attract billions in investment, and ensure that the chips powering India’s growth are truly made in India. It will also enhance India’s influence in global geopolitics, as control over chip technology increasingly defines the balance of power.
As PM Modi concluded, “The day is not far when the smallest chip made in India will drive the biggest change in the world.”
That day may come sooner than many expect, reshaping not only India’s economy but also the global technological order.