India’s Semiconductor Mission – A Strategic Beginning
India’s ambition to become a global semiconductor powerhouse has gained momentum since the launch of the India Semiconductor Mission (ISM) in January 2022. The program was designed to not only establish chip fabrication plants but also create a complete ecosystem involving specialty gases, chemicals, advanced machinery, and a highly skilled workforce. As the world’s dependence on chips deepens—with applications spanning consumer electronics, electric vehicles, telecom, defence, and power systems—India is positioning itself at the heart of this global transformation.
With Semicon 2025, the government has placed semiconductors at the core of its 25-year roadmap for industrial expansion and job creation. Union Minister Ashwini Vaishnaw has drawn a parallel between the role of steel in the 20th century and chips in the 21st, calling semiconductors the “new digital diamonds” that will power every modern manufacturing sector.
A Foundation for Economic Multipliers
Vaishnaw likens the current push to the steel revolution of the last century, which triggered growth in automobiles, infrastructure, and construction. Chips, he said, are now embedded in almost every product—televisions, refrigerators, smartphones, and electric vehicles. Building a robust semiconductor industry in India is expected to have a multiplier effect across the economy, fueling not only manufacturing but also research, innovation, and supply chain resilience.
Globally, nations with semiconductor ecosystems have seen a surge in high-value employment and technological advancement. India, with 10 semiconductor projects worth $18 billion underway—including a facility in Assam—hopes to replicate this success.
Policy, Stability, and Global Trust
A central pillar of India’s appeal lies in policy predictability and long-term planning. While several countries face political and regulatory uncertainties, India is offering a stable and investment-friendly environment. According to Vaishnaw, this consistency has made multinational corporations view India as a trusted long-term partner.
Major global players like Apple have already expanded their manufacturing base in India, despite external challenges such as potential trade protectionism in the US. The government credits India’s strong semiconductor design capabilities, its deep talent base, and the credibility it has built under Prime Minister Narendra Modi’s leadership for attracting continued foreign interest.
From Back-Office to Product Design
A decade ago, India was seen largely as a support hub for global technology firms. That perception is changing rapidly. Today, Indian engineering teams are designing complete products and leading innovation efforts. This leap from service-driven operations to end-to-end product design has emerged as a critical differentiator for India in the global tech ecosystem.
Combined with this design strength is the growth in electronics manufacturing, which has expanded sixfold in the past 11 years. Electronics exports have grown eight times, and India now commands over 20 percent of the global smartphone market. The government is also progressively localizing every major component of the electronics supply chain, further reducing dependency on imports.
Balancing IT Services with Manufacturing
While IT services remain a cornerstone of India’s white-collar employment, concerns have surfaced about protectionist policies in the West. Vaishnaw assured that the government is in active dialogue with global tech firms and foreign governments to safeguard India’s outsourcing industry. At the same time, the country’s electronics and semiconductor expansion provides a solid counterbalance, ensuring sustained job creation even if the services sector faces temporary headwinds.
Chips as the New Steel
India’s semiconductor journey is more than a technological pursuit—it is a national economic strategy. By laying the foundation for chip manufacturing and design, the country is building a new industrial backbone that can rival the steel-led boom of the 20th century.
With stable policies, a skilled workforce, rising design capabilities, and global trust, India is not just preparing for Semicon 2025 but for decades of technological self-reliance and industrial leadership. If executed well, the semiconductor mission could become the next big employment engine, reshaping India’s role in the global economy and cementing its position as a hub of innovation and resilience.
(With agency inputs)
