India to Launch First Homegrown Chips by End-2025, AI Push Also Gains Ground
India’s first domestically produced semiconductor chips will debut by December 2025 under the ₹76,000 crore Semicon India programme. With 10 approved projects and global MoUs, the move boosts manufacturing, jobs, and AI innovation. India will also host the AI Impact Summit in 2026
- Republic Business
- 2 min read
India is preparing to roll out its first-ever “Made in India” semiconductor chips by December 2025, a big step toward reducing reliance on foreign technology. Minister of State for Electronics and IT Jitin Prasada said this will mark the beginning of India’s journey as a chip producer for the world.
The government has launched the Semicon India programme, worth Rs 76,000 crore, to support companies building chip and display manufacturing facilities. Under this scheme, firms can receive up to 50% financial support for setting up semiconductor plants, display fabs, or chip testing and packaging units.
So far, 10 major projects worth Rs 1.6 lakh crore have been approved in states including Gujarat, Assam, Uttar Pradesh, Punjab, Odisha, and Andhra Pradesh. These factories are expected to begin production in the next one to five years and create around 29,000 direct jobs.
To strengthen the sector, India has signed partnerships with the US, European Union, Japan, and Singapore. Since chip-making requires highly skilled workers, new courses in VLSI design and chip manufacturing have been introduced by the AICTE to train engineers.
Also Read: Ashwini Vaishnaw Reveals Inside Story On How India Once Lost Out On Semiconductors | Republic World
The government is also supporting innovation through the Design Linked Incentive (DLI) scheme, with ₹1,000 crore set aside to back start-ups and MSMEs working on chip design. Already, 72 companies have been approved for support, with 23 of them developing chips for use in cars, computers, and communication devices. These efforts aim to cut imports and encourage exports.
On the artificial intelligence front, the government launched the IndiaAI Mission in 2024, focusing on computing power, AI models, start-up funding, and safe AI practices. India will also host the AI Impact Summit in February 2026, where global experts will discuss how AI can shape people’s lives, the environment, and economic growth.
Industry analysts reckon that global shortages of chips in recent years have exposed India’s heavy dependence on imports, especially from East Asia. By investing heavily in local manufacturing and design, India aims not only to secure its own supply chain but also to emerge as a key player in the global semiconductor industry, as per analysts.