India is attempting to create its own "chip mythology" in the semiconductor sector. According to a report by The Indian Express on the 24th, Prime Minister Modi announced on the 23rd that India's first "domestically produced" chip will soon be launched at a semiconductor factory in the northeastern region of the country. He stated that this region is becoming a strategic hub for both energy and semiconductor industries. Modi said that this achievement not only opens up new horizons for India's advanced technology but also marks the increasing importance of the country's northeastern region in the high-tech industrial landscape.
The first Indian chip will adopt a 28nm process.
According to a report by the U.S. technology media "Toms Hardware", the first "India-made" chip will adopt a 28nm process, originally scheduled for release in December 2024, but has now been postponed to the second half of 2025. The report said that although this marks an important step forward for India's semiconductor industry, there remains a significant gap compared to the cutting-edge 2nm processes being developed by some of the world's leading chip manufacturers.
In recent years, global semiconductor demand has surged, leading to profound changes in the supply chain landscape. Against this backdrop, the Indian government has accelerated the development of its domestic chip manufacturing industry, with its strategic intentions mainly reflected in two aspects: on one hand, India hopes to reduce excessive reliance on imported chips; on the other hand, the "Make in India" strategy promoted by the Modi administration requires support from the domestic semiconductor industry.
In March, the first Nanoelectronics Roadshow in India was held in Bangalore, attracting hundreds of engineers and scholars to visit and discuss the development of nanoelectronics and semiconductors in India.
In terms of promoting the development of its domestic semiconductor industry, in 2021, the Indian federal cabinet approved the "India Semiconductor Program," allocating 760 billion rupees to support domestic semiconductor and display manufacturing. In January 2022, the semiconductor manufacturing support plan was officially implemented, covering silicon semiconductor factories, compound semiconductors, silicon photonics, semiconductor packaging, and design companies.
This time, the semiconductor industry progress considered by Modi as a "milestone" is led by one of India's largest conglomerates—Tata Group. According to The Indian Express, last February 29th, the Indian government approved Tata Electronics' proposal to build an advanced semiconductor assembly and testing factory in Jagiroad, Assam. This is an important step towards building an end-to-end semiconductor manufacturing ecosystem in India. The factory investment amounts to 270 billion Indian rupees, used for assembling and testing semiconductor chips applied in automotive, mobile devices, artificial intelligence, and other key fields. Modi once said that this factory has opened the "door of opportunities" for the regional semiconductor industry and other cutting-edge technology sectors. According to India's "The Week" website, Tata Group Chairman Chandrasekaran emphasized that the Jagiroad factory is expected to add 30,000 jobs.
Can infrastructure investment "boost" chip production?
"Today, the northeastern region is playing an increasingly important role in strengthening India's semiconductor ecosystem," Modi said in his speech at the "Northeast Rising Investor Summit 2025." Previously, due to concerns about India's water supply and power infrastructure, many semiconductor manufacturing plants or wafer fabrication companies were reluctant to invest in India. The Modi government positioned the northeastern region as a strategic hub for the semiconductor industry, attempting to break this deadlock through infrastructure and energy investments.
"The more we invest in the future, the less dependent we will be on foreign countries," Modi said, emphasizing that a well-developed road network, stable power infrastructure, and efficient logistics systems are the pillars of all industries. "This is why we have initiated infrastructure construction in the northeastern region. This area has long faced resource shortages, but it is now transforming into a land of opportunities."
According to The Indian Express, over the past decade, the Indian government has constructed 11,000 kilometers of new highways. Modi predicted that trade in the northeastern region will double over the next decade. Currently, India's trade volume with ASEAN is approximately $12.5 billion, which is expected to exceed $20 billion. The northeastern region will become a key trade gateway connecting ASEAN.
Modi emphasized that the Indian government has vigorously promoted hydropower and solar projects in various northeastern states, allocating projects worth tens of billions of rupees. He urged investors not only to focus on infrastructure development in the northeastern region but also to seize golden investment opportunities in local manufacturing. Adani Group Chairman Gautam Adani announced at the summit that they will invest an additional 500 billion rupees in the northeastern region over the next 10 years. Reliance Industries Chairman Mukesh Ambani said, "Over the next five years, we will increase our investment to 75 billion rupees."
Multiple transnational chip projects have been terminated.
"Our dream is that every device in the world will use chips made in India." Last September, Modi reiterated India's ambition to become a semiconductor superpower at any cost. To this day, India's semiconductor industry development path still faces numerous challenges.
Just before Modi announced the imminent birth of the first "India-made" chip, TSMC had officially rejected India's invitation to build a factory. In early May, the project by Indian multinational IT technology company Zoho to invest $700 million in building a compound semiconductor foundry in Karnataka was also declared canceled. As planned, Zoho intended to invest $700 million in building a chip factory in southern India and had prepared for about a year. However, they ultimately encountered a critical issue: they couldn't find suitable technical partners.
At the beginning of this year, the $10 billion project between Adani Group and Tower Semiconductor was abruptly halted. The original plan was to produce 80,000 wafers per month, which was expected to create 5,000 jobs. The halt of the project dealt a significant blow to India's semiconductor industry.
The Indian Economic Times cited a report by Jefferies, a multinational investment bank, stating that India's semiconductor industry is growing but faces challenges such as underdeveloped supply chains, a lack of skilled manufacturing talent, and global competition.
India possesses nearly 20% of the global semiconductor workforce, yet the specialized skills required for semiconductor manufacturing and testing still have gaps. To address this issue, Indian enterprises are committed to skill development, and the government is collaborating with industry and universities to create courses tailored to semiconductor manufacturing, assembly, and testing.
In addition, the Indian government hopes to attract investment through incentive measures. However, establishing advanced manufacturing facilities involves risks, including initial production challenges, quality control issues, and achieving economies of scale. The report emphasized that the success of India's semiconductor industry will depend on its domestic long-term demand for chips. Another major challenge is keeping pace with rapidly evolving technologies, as the global semiconductor industry accelerates toward more advanced process nodes. As a latecomer, India needs to make substantial investments to maintain competitiveness.
Source: Global Times
Author: Ding Yazhi, Yuan Jierong
Editorial Staff: U022
Original Article: https://www.toutiao.com/article/7508922956320408083/
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