Ashwini Vaishnaw, Minister of Information and Broadcasting, Government of India, has announced that India’s first locally manufactured semiconductor chip will be introduced between September and October this year during a media interaction in Bengaluru. The Indian government has sanctioned ₹334 crore to the Indian Institute of Science (IISc), Bengaluru, to drive new research and development (R&D) in gallium nitride (GaN) technology. This semiconductor material plays a crucial role in telecommunications and power applications. Vaishnaw also revealed that the government is preparing to introduce a production-linked incentive (PLI) scheme specifically for semiconductor components to boost domestic manufacturing.

Tata Electronics & PSMC Lead First Semiconductor Fab

Tata Electronics, in collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), is spearheading India's first semiconductor fabrication plant in Dholera, Gujarat. This facility is poised to revolutionise India’s chip manufacturing capabilities and enhance the country’s position in the global semiconductor industry.

IISc’s Breakthrough in Gallium Nitride Technology

According to the IISc website, gallium nitride (GaN) is regarded as a promising avenue for India to establish itself in the niche semiconductor sector. A team of interdisciplinary faculty members at IISc has successfully developed India's first-ever e-mode gallium nitride power transistor, whose performance is on par with some of the best global benchmarks.

Read More: Enfabrica Expands Global Presence with New R&D Hub in Hyderabad

Advancing India's Semiconductor Ecosystem

Last month, Vaishnaw reaffirmed that India’s first indigenous semiconductor chip is on track for its 2025 launch. Initially, the chip was scheduled for a December 2024 release, as announced by Vaishnaw at the Davos summit in January last year.

In December 2021, Prime Minister Narendra Modi approved the Semicon India program with a total allocation of ₹76,000 crore. This initiative aims to establish a robust semiconductor and display manufacturing ecosystem in the country. It is designed to provide financial assistance to companies investing in semiconductor fabrication, display manufacturing, and design.

India Semiconductor Mission (ISM) 

To facilitate long-term growth in the sector, the government has launched the India Semiconductor Mission (ISM). Functioning as an independent division under Digital India Corporation, ISM has been granted administrative and financial autonomy to shape and implement strategies for semiconductor and display manufacturing in the country. As per a Reuters report, India's semiconductor market is projected to reach $63 billion by 2026. This rapid growth underscores India's potential to become a global semiconductor hub in the coming years.