First Domestically Produced Semiconductor Chip to Launch by Year-End
India is set to launch its first 'Made-in-India' semiconductor chip by the end of this year, Prime Minister Narendra Modi announced on Independence Day. This marks a significant milestone in the country's mission for technological self-reliance. The Prime Minister noted that six semiconductor units are already established and four more have been approved, signalling rapid progress in a sector critical for everything from mobile phones to electric vehicles. This development aims to reduce dependency on foreign manufacturers and boost domestic industry.
Unpacked:
India's first domestically produced chips will use 28 to 90 nanometre technology, suitable for display driver chips found in mobile phones, laptops, automotive systems, and other display-equipped devices. This positions India at a competitive but not cutting-edge technology node compared to global leaders.
India's earlier semiconductor efforts, starting with SCL in 1984, faced setbacks due to inadequate funding, outdated technology, poor infrastructure, restricted foreign collaboration, and a public sector-led model that limited innovation. A major fire in 1989 further stalled progress for decades.
The Indian government has launched initiatives like the Swadeshi Microprocessor Challenge and a Production Linked Incentive (PLI) scheme. It has also approved substantial investments, set up innovation hubs, and formed strategic partnerships with global companies to promote domestic design and manufacturing.
Producing chips domestically is expected to reduce reliance on foreign imports, strengthen national security, boost employment, attract foreign investment, and foster innovation. It will help India become more competitive globally in electronics, automotive, and emerging technology sectors.