Chips are digital diamonds, world ready to build semiconductor future with India: PM Modi

NEW DELHI: Prime Minister Narendra Modi inaugurated the ‘Semicon India – 2025’, aimed at catalysing India’s Semiconductor ecosystem and said the world trusts India and is ready to build the semiconductor future with the country.

Remarking that in the world of semiconductors, it is often said, ‘Oil was black gold, but chips are digital diamonds’, the Prime Minister stated that oil shaped the previous century, and the fate of the world was determined by oil wells. The global economy fluctuated based on how much petroleum was extracted from these wells. However, he emphasized that the power of the 21st century is now concentrated in the small chip. Though tiny in size, these chips possess the potential to accelerate global progress significantly.

PM Modi highlighted that the global semiconductor market has already reached $600 billion, and in the coming years, it is expected to surpass $1 trillion. He expressed confidence that, given the pace at which India is advancing in the semiconductor sector, India will hold a significant share in this $1 trillion market.

PM Modi recalled that in 2021, the Semicon India programme was launched, by 2023, India’s first semiconductor plant had been approved, in 2024, several more plants received approval, and in 2025, five additional projects were cleared. He said ten semiconductor projects are now underway, involving an investment of over eighteen billion dollars –more than ₹1.5 lakh crore. The Prime Minister emphasised that this reflects the growing global trust in India.

Emphasising that in the semiconductor sector, speed matters, PM Modi said, “the shorter the time from file to factory, and the lesser the paperwork, the sooner wafer work can begin”. He stressed that the government is working with this very approach.

The National Single Window System has been implemented, enabling all approvals from both the Centre and States to be accessed on a single platform. As a result, investors have been freed from extensive paperwork, he noted.

Prime Minister highlighted that semiconductor parks are being developed across the country under a plug-and-play infrastructure model, which offer facilities such as land, power supply, port and airport connectivity, and access to a skilled worker pool. He remarked that when such infrastructure is combined with incentives, industrial growth is inevitable.

Whether through PLI incentives or Design Linked Grants, India is offering end-to-end capabilities. This is why investment continues to flow in, he emphasised.

Affirming that India is moving beyond backend operations and progressing towards becoming a full-stack semiconductor nation, PM Modi reiterated that the day is not far when India’s smallest chip will drive the world’s biggest change. “Our journey began late… but nothing can stop us now.”

Prime Minister informed that CG Power’s pilot plant commenced operations on August 28, just 4-5 days ago. He added that the pilot plant of Kaynes is also about to begin. Test chips from Micron and Tata are already in production. He reiterated that commercial chip production will begin this year, underscoring the rapid progress India is making in the semiconductor sector.

Emphasizing that India’s semiconductor success story is not confined to a single vertical or a single technology, PM Modi stated that India is building a comprehensive ecosystem–one that encompasses designing, manufacturing, packaging, and high-tech devices, all within the country.

He clarified that the Semiconductor Mission is not limited to establishing a single fab or producing a single chip. Rather, India is creating a robust semiconductor ecosystem that will make the nation self-reliant and globally competitive.

PM Modi said that the country is advancing in this sector alongside the world’s most advanced technologies. He noted that design centers being developed in Noida and Bengaluru are working on some of the world’s most advanced chips–capable of storing billions of transistors. He emphasized that these chips will power the immersive technologies of the 21st century. Addressing the challenges faced by the global semiconductor sector, the Prime Minister affirmed that India is actively working to overcome them.

He remarked that while towering buildings and impressive physical infrastructure are visible in cities, their foundation lies in steel. Similarly, the foundation of India’s digital infrastructure is built on critical minerals. PM Modi stated that India is currently working on the National Critical Mineral Mission and is committed to meeting its demand for rare minerals domestically. He added that over the past four years, significant progress has been made on critical minerals projects.

Underscoring that the government envisions a significant role for start-ups and MSMEs in the growth of the semiconductor sector, the Prime Minister highlighted that India contributes 20 percent of the world’s semiconductor design talent, and that the country’s youth represent the largest human capital factory for the semiconductor industry.

Addressing young entrepreneurs, innovators, and start-ups, PM Modi urged them to come forward, assuring that the government stands shoulder to shoulder with them.

He emphasized that the Design Linked Incentive Scheme and the Chips-to-Startup Programme are specifically designed for them.

He announced that the Design Linked Incentive Scheme is being restructured to better serve its objectives. The Prime Minister stated that the government is committed to developing Indian intellectual property (IP) in this sector.

He called upon all states to engage in healthy competition with one another to build semiconductor ecosystems and enhance the investment climate within their regions.

“India has reached this stage by following the mantra of Reform, Perform, and Transform. A new phase of next-generation reforms will soon be initiated,” PM Modi said, noting that work is underway on the next phase of the India Semiconductor Mission.

“Design is ready. Mask is aligned. Now is the time for precision execution and delivery at scale,” he told the investors.

He emphasised that India’s policies are not short-term signals but long-term commitments and assured that every investor’s needs will be met. “The day is not far when the world will say: Designed in India, Made in India, Trusted by the World,” he said.

The first set of Made-in-India chips from a pilot line was presented to PM Modi by Union Minister of Electronics and Information Technology Ashwini Vaishnaw.

Vaishnaw emphasized that India’s semiconductor mission is built on trust respecting intellectual property rights, supporting supply chain development, and promoting co-development models with global partners. “India has always gone to the world as a partner, fostering mutual growth and win-win collaborations,” he said, adding that this trusted position is one of India’s strongest advantages in the global value chain.

12 Memorandums of Understanding (MoUs) were announced during Semicon India 2025. These agreements focus on enhancing product development, expanding service capabilities, and strengthening the skill development sector, with the aim of building a self-reliant and future-ready semiconductor ecosystem in the country.

To further strengthen innovation, Vaishnaw announced the formation of the Deep Tech Alliance, with close to a billion dollars already committed.

Initially focusing on semiconductors, the Alliance will expand to other frontier sectors such as clean energy, biotechnology, quantum technologies, and space. The Minister said this would provide much-needed venture capital support for emerging deep tech industries.

The Union Minister stated that the Semiconductor Laboratory, Mohali modernization programme is progressing well, aimed at increasing production levels, enabling new product tape-outs, and strengthening India’s high-value, mid-volume manufacturing capacity. Building on the success of ISM 1.0, the Government is also preparing to launch ISM 2.0, which will broaden support for fabs, OSAT units, capital equipment, and materials to cover the entire semiconductor value chain.

The Union Minister stated that exports will be an integral part of the ten approved projects, ensuring that chips made in India will serve both domestic and global markets. Independent studies indicate that semiconductor production in India is already 15-30% more cost-competitive compared to global benchmarks. Shri Vaishnaw underlined that India never rushed through project approvals but ensured professional assessment for sustainable progress. With two fabs already in place and more in the pipeline, India is building momentum in an industry where, once the foundation is set, growth accelerates exponentially. (ANI)