INDIA’S FIRST HOMEGROWN SEMICONDUCTOR CHIP READY BY 2025

GS3 SCIENCE AND TECH: 

India’s debut indigenous semiconductor chip is slated for production by 2025, a milestone in reducing reliance on imports and bolstering its global semiconductor standing. Currently, India depends heavily on nations like Taiwan and China for chips.

Benefits of Indigenous Chips

Developing local chips will strengthen national security, cut trade deficits, and invigorate the domestic electronics sector.

India’s Semiconductor Landscape

• Market Size: Valued at roughly $38 billion in 2023, expected to reach $109 billion by 2030.
• Growth Potential: The semiconductor consumption market is forecast to grow at a 13% CAGR through 2030.

Challenges

• High Capital Needs: Establishing a semiconductor fabrication plant costs over $10 billion.
• Skill Shortages: India lacks sufficient experts in chip design, fabrication, and testing.
• Raw Material Imports: Key inputs like silicon wafers and chips are sourced externally.

Supporting Initiatives

• Semicon India Program: Offers incentives and partnerships to grow the domestic semiconductor industry.
• India Semiconductor Mission: Aims to create a robust semiconductor and display ecosystem, positioning India as a global electronics hub.
• Global Collaborations: Partnerships with firms like Micron and Foxconn to set up manufacturing units in India.