India to Launch First Indigenous Chips by 2025 Amid AI Push

• India to launch its first domestic semiconductor chips by December 2025
• Ten projects worth ₹1.6 lakh crore to create 29,000 jobs and boost chip manufacturing
• Government promotes global partnerships, skill development, and AI initiatives to cut imports and drive innovation

India is on track to unveil "Made in India" semiconductor chips by December 2025, a crucial stepp for the country as it attempts to bring independence from import technology. This initiative will mark the entry of India towards the pursuit of independence as a global chip producer, stated Minister of State for Electronics and IT, Jitin Prasada. In order to boost local production, the government initiated the Semicon India programme with an allocation of ₹76,000 crore.

With assistance offered for undertaking semiconductor facilities, display fabs, and chip testing and packaging units up to 50% financial assistance. So far, ten major projects with an estimated ₹1.6 lakh crore have been approved in states such as Gujarat, Assam, Uttar Pradesh, Punjab, Odisha, and Andhra Pradesh, with these outfits expected to be operational 1-5 years from now, with a total of around 29,000 direct jobs.

India is also strengthening global partnerships, advocating partnerships with the US, European Union, Japan and Singapore to enhance the sector. As chip manufacturing requires specialized skills, AICTE has brought in course framework in VLSI design and semiconductor manufacturing to produce more engineers.

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DLI scheme is intended to promote innovation where ₹1,000 crore is provided to support chip design start-up companies and MSMEs. 72 companies have been approved so far from the DLI scheme has approved 72 companies - 23 of which are involved in development of chips for automobiles, computers, and telecommunication devices with the desire to reduce imports and increase exports.

On the AI front, the government initiated the India AI Mission at the start of 2024 and outlined four major components: computing power, AI models, funds for start-ups in the domain, and safe AI development and deployment. In addition, in February 2026, India is expected to host the AI Impact Summit to examine the implications of AI and its impact on society, the environment, and the economy.

Industry analysts point out that the recent wave of global chip shortages has demonstrated India's dependency on importing chips and semiconductors, namely from countries in East Asia. By investing in manufacturing and design capacity domestically, India aims to secure the supply chain for chips and semiconductors and retain a position in the global semiconductor industry.