Semicon India 2025: India to start commercial chip production this year itself, PM Modi says

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India will start commercial semiconductor production this year itself, Prime Minister Narendra Modi said on Tuesday, touting the country as a future “global hub” for chip innovation.

Prime Minister Narendra Modi at the SEMICON India 2025 event in New Delhi on Tuesday, 2 September 2025.(AFP)

“The day is not far when the smallest chip made in India will drive the biggest change in the world,” he said at the inauguration of Semicon India 2025—an annual conference for India’s semiconductor ecosystem—in Noida “The day is not far when the world will say ‘Designed in India, Made in India, Trusted by the World’.”

“The world trusts India, the world believes in India, and the world is ready to build the semiconductor future with India.”

India’s semiconductor market has surged from $38 billion in 2023, to $45-50 billion in 2024-2025, with government targets of $100-110 billion by 2030. The country is currently developing 10 semiconductor projects worth $18 billion in investments, including two new 3-nanometre design facilities—among the most advanced—in Noida and Bengaluru.

During Modi's visit to Tokyo last week, Japan pledged to boost investment in India to 10 trillion yen ($68 billion), including for semiconductors and artificial intelligence.

"Our journey began late, but nothing can stop us now," Modi said.

According to the prime minister, India has an edge over others in three areas—producing components for semiconductor equipment, supplying critical material, and services ranging from R&D to AI, big data and cloud-computing.

India—the most populous country in the world with one of the youngest demographics—has a “human capital” advantage, Modi said, noting that "20% of the global talent in semiconductor design comes from India.”

India, the world's fifth largest and fastest-growing major economy, has been battered by the fallout from US President Donald Trump’s 50%tariffs, and is seeking new avenues of growth.

With international chip demand surging but supply chains concentrated in a handful of regions, India says it is building a “complete ecosystem” of design, manufacturing and packaging to become both “self-reliant and globally competitive”.

"Today’s India inspires confidence in the world,” Modi was quoted as saying, in a government briefing note on the industry this week. “When the chips are down, you can bet on India.

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