Semicon India Programme: Establishing a Comprehensive Semiconductor Ecosystem

India's semiconductor development strategy is advancing through the government-backed Semicon India Programme, which seeks to develop a complete ecosystem spanning design, fabrication, assembly, testing, and packaging. This initiative is grounded in the Prime Minister's vision of Atmanirbhar Bharat (self-reliant India) and Make in India, Make for the World, reflecting the foundational importance of the semiconductor industry to the nation's economic growth.

Investments and Manufacturing Expansion

Recognizing semiconductors as critical infrastructure, the Government has channeled significant investments through the Semicon India Programme and PLI schemes for the electronics sector. These initiatives are designed to address chip requirements across multiple industries including consumer appliances, industrial electronics, automobiles, telecommunications, aerospace, and power electronics. Several approved proposals are leveraging indigenous technology specifically for assembly, testing, and packaging operations of semiconductor chips, strengthening the domestic value chain.

The sector has demonstrated remarkable growth over the past eleven years. Electronics manufacturing has expanded nearly sixfold, increasing from Rs 1.9 lakh crore in 2014-15 to Rs 11.32 lakh crore in 2024-25. Electronics exports have grown eight times, rising from Rs 38 thousand crore in 2014-15 to Rs 3.26 lakh crore in 2024-25, establishing electronics as the nation's third largest export category.

Strengthening Design Capabilities

To capitalize on India's existing strengths in chip design, the Government launched the Design Linked Incentive (DLI) Scheme. This scheme has provided support to 23 companies developing 24 designs for applications including satellite communication, drones, surveillance cameras, Internet of Things devices, LED drivers, AI devices, telecom equipment, and smart meters. As infrastructure support, free design tool (EDA) access has been extended to 94 startups, facilitating 47 lakh hours of design tool usage and enabling innovation across the startup ecosystem.

Building Semiconductor Talent Pipeline

The Government has adopted a comprehensive approach to develop skilled workforce in semiconductors. The FutureSkills PRIME program, a collaborative initiative between the Ministry of Electronics and Information Technology (MeitY) and the National Association of Software and Service Companies (NASSCOM), aims to position India as a cutting-edge digital talent nation with capabilities in semiconductor development.

Additionally, the PLI scheme for IT hardware has attracted Rs 846 crore in investments until October 2025, further strengthening the ecosystem's financial foundation. These coordinated policy efforts reflect a structured approach to building India's position in semiconductor manufacturing and innovation.