Are semiconductors made in India? Here's what's really happening in 2025

For years, India was known for assembling phones, not making the chips inside them. But that’s changing. Today, India isn’t just importing semiconductors-it’s starting to make them. Not at the scale of Taiwan or South Korea yet, but enough to matter. If you’ve ever wondered whether the tiny silicon brains in your smartphone, TV, or car are being made in India, the answer is: yes, but it’s still early days.

India’s semiconductor story isn’t about big names-it’s about policy

Before 2020, India had zero domestic semiconductor fabrication plants. Every chip used in Indian electronics came from abroad-mostly from Taiwan, South Korea, and China. That changed when the Indian government launched the Production Linked Incentive (PLI) Scheme for Semiconductors in 2021. It promised $10 billion in incentives to companies willing to set up chip design, packaging, or manufacturing facilities in India.

That money didn’t just sit around. By 2024, six major semiconductor projects had been approved. One of them, a $1.5 billion facility by Vedanta and Foxconn in Gujarat, is expected to start producing display driver chips by late 2025. Another, by Tata Electronics in Dholera, will make advanced packaging for AI chips. These aren’t full-scale wafer fabs like TSMC’s in Taiwan, but they’re critical steps toward building a local supply chain.

What kinds of chips are being made in India right now?

India isn’t making the most advanced 3nm or 5nm chips yet. Those require billions in investment and decades of expertise. Instead, Indian factories are focusing on what’s called ‘mature node’ semiconductors-chips made on 28nm or larger processes. These chips are older, cheaper, and still in huge demand.

Think of them as the workhorses of electronics: chips that control your air conditioner, your LED TV, your electric scooter, your smart meter, and even basic car systems. These don’t need cutting-edge tech. They just need to be reliable and affordable. And that’s exactly where India is stepping in.

Companies like Dixon Technologies and PixelQube are already assembling chip-based modules locally. Tata Electronics has started packaging chips for global brands like Qualcomm and NVIDIA. Packaging means taking a bare silicon die-made overseas-and putting it into a protective casing with connectors. It’s not making the chip from scratch, but it’s still a vital part of the process. And it’s creating real jobs, real infrastructure, and real experience.

Why India is a good fit for chip making

India has three big advantages for semiconductor manufacturing.

First, it has a massive domestic market. Over 900 million smartphones are sold in India every year. Every TV, every smart home device, every electric vehicle-most of them are sold here. If you make chips in India, you don’t have to ship them halfway across the world. That cuts costs, reduces delays, and makes supply chains more resilient.

Second, India has a growing talent pool. Over 1.5 million engineering graduates enter the workforce every year. Many of them specialize in electronics, VLSI design, and embedded systems. Companies like Intel and Qualcomm have opened design centers in Bengaluru and Hyderabad, training engineers who could one day lead chip fabrication teams.

Third, global supply chain disruptions-like the pandemic and the Ukraine war-made companies rethink where they make things. China isn’t the only option anymore. India, with its stable democracy, English-speaking workforce, and digital infrastructure, is now a top alternative.

What’s still missing?

Don’t get fooled by headlines. India doesn’t have a single plant that makes silicon wafers from scratch. That’s the hardest part. Making a chip starts with ultra-pure silicon crystals, grown in special furnaces, sliced into wafers, then processed through dozens of cleanroom steps. Only a handful of countries in the world can do that at scale.

India still imports all its silicon wafers, chemicals, and specialized equipment. The country also lacks a strong ecosystem of local suppliers for things like photoresists, etching gases, and robotic arms used in chip factories. Without those, even the best-funded plant can’t run smoothly.

There’s also a cultural gap. In places like Taiwan and Japan, semiconductor workers often spend 20-30 years mastering one step of the process. In India, the industry is still new. Building that kind of institutional knowledge takes time-and patience.

Who’s already making chips in India?

Here are the key players actively involved in India’s semiconductor push:

• Vedanta-Foxconn: Building a $1.5 billion display driver chip plant in Gujarat. Expected to produce 50 million chips per month by 2026.
• Tata Electronics: Setting up a chip packaging facility in Dholera, Gujarat. Will handle AI and automotive chips for global clients.
• Dixon Technologies: Assembling chip-based modules for smart TVs, set-top boxes, and IoT devices.
• PixelQube: A startup designing custom chips for smart meters and industrial sensors.
• Intel and Qualcomm: Both have major design centers in India, training engineers who will eventually run fabrication teams.

These aren’t just foreign companies setting up shop. They’re partnering with Indian firms, hiring local engineers, and investing in training programs. This isn’t outsourcing-it’s building a new industry from the ground up.

Will India ever make 7nm or 5nm chips?

Not anytime soon. Making the latest chips requires over $20 billion in investment, access to Dutch lithography machines (only ASML can make them), and decades of accumulated expertise. That’s not something India can build overnight.

But that’s not the goal. India’s strategy is smarter: focus on what the world needs now, not what it will need in 10 years. Mature node chips make up over 80% of global semiconductor demand. They’re used in everything from medical devices to solar inverters to electric buses. That’s a $150 billion market-and India wants a big slice.

By mastering this segment first, India can build the skills, supply chains, and reputation needed to move up the ladder later. Think of it like learning to ride a bicycle before trying a motorcycle.

What does this mean for you?

If you’re a consumer in India, it means your next smartphone or TV might have a chip that was packaged-or even designed-right here. That could mean faster repairs, lower prices, and fewer delays when global supply chains break down.

If you’re a student studying electronics, this is your moment. India needs engineers, technicians, and operators for this new industry. The government is funding training programs at over 50 technical institutes. Companies are offering internships and apprenticeships in chip packaging and testing.

If you’re a business owner, you might soon be able to buy locally made chips for your IoT devices, smart appliances, or automation systems. No more waiting six months for a shipment from Taiwan.

The bottom line

Yes, semiconductors are being made in India-but not the way you might think. You won’t find a factory churning out Apple’s A17 chip on Indian soil. But you will find factories assembling the chips that power your fan, your TV, your electric rickshaw, and your home solar system. That’s not a small thing. It’s the foundation of a new industrial revolution.

India isn’t trying to beat Taiwan. It’s trying to serve itself. And in doing so, it’s building a future where the world doesn’t have to rely on just a few countries to make the tiny engines of modern life.