Prime Minister Narendra Modi addresses the nation from the Red Fort on the occasion of the 79th Independence Day, in New Delhi, Friday, Aug. 15, 2025.
Credit: PTI Photo
New Delhi: First made-in-India semiconductor chip will be launched in the market by the end of this year, Prime Minister Narendra Modi said on Friday.
Addressing the nation on the 79th Independence Day, Modi said that six semiconductor units are already on ground and four new units have been given green signal.
"By the end of this year, made in India, made by the people of India, made in India chips will come to the market," Modi said.
Semiconductors, key components for any electronic device, have diverse applications ranging from mobile phones and computers to home appliance and electric vehicles.
The prime minister said that the thought process for semiconductors in the country started 50-60 years ago but it got stuck in the files while several countries have mastered it and are dominating the world.
"My dear youth, you will be surprised to know that today, the semiconductor, which has become the strength of the world, 50-60 years ago, that thought process, those files, got stuck. They got stuck. The thought process of the semiconductor itself was foeticide 50-60 years ago. It lost 50-60 years. After us, many countries, in semiconductors, today, have mastered the technology and consolidated their power," Modi said.
The PM said that he is not at the Red Fort to criticise any government but it is equally important for youth to know about it.
He said that the country has now freed itself from the burden of the past and is moving forward in the area of semiconductors in a mission mode.
The first known attempt to set up a semiconductor plant in India was made by American physicist and entrepreneur Robert Noyce in late 1960s before he co-founded Intel with Gordon Moore.
India's semiconductor market is expected to more than double to grow in the range of USD 100-110 billion by 2030, according to industry estimates, an official statement said on Sunday.
The Indian semiconductor market was about USD 45-50 billion in 2024-2025 against USD 38 billion in 2023, according to an official statement which cited industry estimates.
The Union Cabinet this week approved four semiconductor plants, including a unit backed by US technology major Intel and Lockheed Martin, entailing a total investment of Rs 4,594 crore in three states of Odisha, Andhra Pradesh and Punjab.
The Cabinet approved a 3D glass semiconductor packaging unit to be set up by 3D Glass Solutions Inc -- which is backed by US technology majors such as Intel, Lockheed Martin and Applied Materials, entailing an investment of Rs 1,943 crore with an annual production capacity of 5 crore units.
This is the first semiconductor project that involves personal computer chip maker Intel Corporation along with other technology partners.
The Cabinet approved the country's first commercial compound fabrication unit by SiCsem for making silicon carbide semiconductors. The plant will be set up in Bhubaneswar with an investment of Rs 2,066 crore with capacity to produce 9.6 crore chips per year.
A chip packaging plant in Andhra Pradesh, to be set up by Advanced System in Package Technologies with an investment of Rs 468 crore, was also approved by the Cabinet. It will have a capacity to produce 9.6 crore chips per year.
The Cabinet also cleared a semiconductor project of electronics component maker firm CDIL. The facility will be set up in Punjab with an investment of Rs 117 crore, having an annual production capacity of 15.8 crore units.
The new semiconductor projects raise the total number of chip plants in India to 10 with cumulative investment commitment of around Rs 1.6 lakh crore.
The chip plants that are setting up factories in advance stages include semiconductor wafer manufacturing units by Tata Electronics (TEPL) in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC) of Taiwan with a proposed investment of around Rs 91,000 crore.
The other five plants are into the field of chip packaging, which include a unit by US memory chip maker Micron Technology with Rs 22,516 crore investment, one by CG Power & Industrial Pvt Ltd in partnership with Renesas & Stars with Rs 7,600 crore investment, a Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) plant worth Rs 27,000 crore, a Kaynes Semicon unit of Rs 3,307 crore and a unit of HCL-Foxconn JV entailing an investment of Rs 3,700 crore.