First Made-In-India Chip By End-Year: Ashwini Vaishnaw

"The first made-in-India chip, of 28-90 nm, will roll out this year. We started manufacturing in 2022," he said at the Confederation of Indian Industry’s (CII) annual general meeting. He added that India is targeting this particular segment, as it has 60 per cent of the market volume.

The first chip is expected to come from Assam. The unit is driven by Tata Electronics. Under its Semiconductor Mission, the government has now approved the setting up of a semiconductor manufacturing base in Uttar Pradesh — the country's sixth unit --  a joint venture between HCL and Foxconn.

Earlier, speaking at the Rising Northeast Investors Summit 2025, Prime Minister Narendra Modi said, “Today, the Northeast is playing a larger role in strengthening the country’s semiconductor ecosystem.”

Semiconductor Technology

Thailand based Outsourced Semiconductor Assembly and Test (OSAT) provider Stars Microelectronics, has already invested in in Gujarat’s Sanand. The joint venture between CG Power and Industrial Solutions Ltd. and Renesas Electronics Corporation is expected to complete the production base by December 2026. The full-scale production is slated to begin by October 2027.

India is aggressively pushing for research and development to strengthen the chip manufacturing facility within the country.  

At present, India is fully dependent on imports for this critical technology, with China being one of the key suppliers of chips.

With further economic development, the global demand for semiconductor chips is expected to rise. The 5G rollout in the country will also push demand for chips.

India Semiconductor Mission

According to Invest India, India’s semiconductor sector, which is valued at US$ 23.2 billion, will increase at an incredible 17.1 per cent compound annual growth rate (CAGR) to reach US$ 80.3 billion by 2028.

By improving indigenous semiconductor design and manufacturing while reducing reliance on imports, innovative entrepreneurs and savvy investors are paving the path for a self-sufficient ecosystem for both domestic and international markets, it said.

India is also trying to strengthen the supply chain for semiconductors with a ready availability of rare earth minerals.

Several foreign players, especially from South Korea, such as Samsung and Simmtech, have been eyeing India’s semiconductor market. The companies have shown a keenness to invest in the northeast.

Development of the northeast is critical, as it serves as a crucial link for India, as it not only connects neighbouring countries like Bangladesh, Myanmar, Bhutan, Nepal and China, but is also the gateway to Southeast Asia. The region is seen as key by the Narendra Modi government, with its focus on its Act East policy.