India to Launch Commercial Chip Production by 2025: Key Opportunities and Impacts for Global Investors and Businesses
NEW DELHI — India is set to commence commercial semiconductor production by the end of 2025, Prime Minister Narendra Modi announced on Tuesday, positioning the country as a future global hub for chip innovation.
Speaking at the launch of the annual Semicon India conference in New Delhi, Modi highlighted that test chips from Micron and Tata are already in production. "Commercial chip production will begin this year," he stated, emphasizing the rapid progress India is making in the semiconductor sector.
India’s semiconductor market is projected to grow significantly, expanding from $38 billion in 2023 to between $45 and $50 billion in 2024-2025, with government aspirations targeting $100 to $110 billion by 2030. Currently, the country is advancing 10 semiconductor projects valued at $18 billion in investments, including two cutting-edge 3-nanometre design facilities located in Noida and Bengaluru.
"Our journey began late, but nothing can stop us now," Modi declared, underscoring the country’s determination to advance.
India claims competitive advantages in three key areas: manufacturing components for semiconductor equipment, supplying critical materials such as chemicals and minerals, and offering services that span research and development, artificial intelligence, big data, and cloud computing.
Modi also pointed to India’s "human capital" edge, noting that 20 percent of the global talent in semiconductor design originates from India.
This announcement follows Japan’s recent pledge to invest 10 trillion yen (approximately $68 billion) in India, focusing on semiconductors and AI collaboration, announced during Modi’s visit to Tokyo last week.
As the world’s fifth-largest and fastest-growing major economy, India is seeking new growth avenues in the wake of heavy impacts from US President Donald Trump’s 50 percent tariffs. With rising global chip demand and supply chains concentrated in a few regions, India is constructing a comprehensive ecosystem encompassing design, manufacturing, and packaging, aiming to be both self-reliant and globally competitive.
"Today’s India inspires confidence worldwide," Modi said in a government briefing note on the industry this week. "When the chips are down, you can bet on India." — AFP
Special Analysis by Omanet | Navigate Oman’s Market
India’s rapid advancement in semiconductor production and its ambition to become a global hub presents significant opportunities for Omani businesses and investors to explore partnerships in technology and innovation. With India building a comprehensive ecosystem and attracting massive investments, Oman could leverage this growth to diversify its economy and invest in tech-driven sectors. Smart investors should consider strategic collaborations and tapping into India’s expanding semiconductor supply chain, while staying alert to global shifts in technology production hubs.
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