India is set to introduce its first made-in-India chip from a commercial semiconductor fab as announced by IT Minister Ashwini Vaishnaw. The chip is expected to be launched in September or October, marking a significant step in the country’s semiconductor industry. Tata Electronics in partnership with Powerchip Semiconductor Manufacturing Corporation is building the nation’s first semiconductor fab in Dholera, Gujarat. This initiative is part of the government’s broader plan to boost domestic semiconductor production and reduce dependency on imports.
The government has allocated Rs 334 crore to the Indian Institute of Science in Bengaluru for research and development in gallium nitride technology. Gallium nitride is used in telecom and power applications which offers a cost-effective alternative to silicon. An interdisciplinary group at IISc recently developed India’s first e-mode GaN power transistor, achieving performance comparable to global standards. This milestone underscores India’s potential in the semiconductor field. This breakthrough further reinforces growth.
Minister Vaishnaw also announced that the government will introduce a production-linked incentive scheme for components in the near future. A portal for graphics processing units under the IndiaAI Mission is expected to launch shortly. The electronics manufacturing sector has attracted investments of Rs 13,162 crore recently, reflecting strong industry growth. Additionally, the latest semiconductor design tools are now available to students in 234 universities, supporting the development of future talent.
In addition, Vaishnaw highlighted ongoing efforts to complete the India Semiconductor Mission 1.0, which includes the modernization of the Semiconductor Lab in Mohali. Following its completion, the ministry will seek approval for ISM 2.0 with budgetary allocations to be announced after cabinet approval. These steps are expected to further enhance India’s semiconductor ecosystem and support sustained growth in domestic technology innovation. The planned advancements reflect government commitment to a resilient and competitive semiconductor industry in India.
