India accelerates domestic chip manufacturing plans

November 21, 2025 /SemiMedia/ — India expects its chipmaking capacity to reach the level of leading producer nations by 2032, technology minister Ashwini Vaishnaw said at an event in Singapore, underscoring New Delhi’s push to expand domestic semiconductor manufacturing.

Although the country remains in the early stages of building a semiconductor industry, the government has committed $10 billion in incentives to attract foundries, packaging facilities and design houses. Micron has begun constructing an assembly and test plant in Gujarat, while Tata Group is preparing to produce silicon chips domestically.

Global competition highlights India’s capacity gap

India still trails far behind South Korea, the United States, China and Japan, where governments and corporations are investing heavily to secure chip supply for critical technologies, from AI to autonomous vehicles. These countries possess deeper supply chains and mature manufacturing ecosystems, giving them a substantial head start.

Vaishnaw said three new chip plants in India are scheduled to begin commercial output early next year. He added that India’s expanding design community and engineering talent pool are helping the country reach a stage where private capital could begin flowing more naturally into the sector.

New fabs and government incentives drive sector growth

New Delhi aims to replicate the model used to draw Apple’s iPhone production into the country, hoping similar incentives will encourage global semiconductor makers to establish manufacturing operations in India.