India to Start Commercial Chip Production by 2025

India will begin commercial semiconductor production by the end of 2025, Prime Minister Narendra Modi said Tuesday, touting his nation as a future "global hub" for chip innovation.

Modi, speaking in New Delhi at the launch of the annual Semicon India conference, said test chips from Micron and Tata were already being produced.

"Commercial chip production will begin this year," he said. "This reflects how rapidly India is advancing in the semiconductor sector."

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.

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

India says it has an edge in three areas -- producing components for semiconductor equipment, supplying critical materials such as chemicals and minerals, and services ranging from research and development, to artificial intelligence, big data and cloud computing.

The world's most populous nation also claims a "human capital" advantage, Modi said, noting that "20 percent of the global talent in semiconductor design talent comes from India".

The announcement comes after Japan pledged to boost investment in India to 10 trillion yen ($68 billion), including semiconductor and AI cooperation, during Modi's visit to Tokyo last week.

India, the world's fifth largest and fastest-growing major economy, has been battered by the fallout from US President Donald Trump's punishing 50 percent 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" covering 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."

AFP/RSS