Amit Shah Confident of India's Semiconductor Self-Reliance and Export Ambitions

India's Semiconductor Ambition Takes Center Stage

Union Home Minister Amit Shah on Thursday, December 25, 2025, expressed strong confidence in India's trajectory towards achieving self-reliance in the semiconductor industry and becoming a significant exporter of chips. Speaking at the Abhyudaya Madhya Pradesh Growth Summit in Gwalior, Shah acknowledged India's 'late entry' into the sector but emphasized that it has been a 'strong' one. He stated, 'We have made a strong entry into the semiconductor industry, although a bit late. Very soon we will not only become self-reliant in the semiconductor sector, but also start exporting.'

Key Investments and Economic Progress

During the summit, Shah also inaugurated and laid foundation stones for industrial projects valued at over ₹2 lakh crore (approximately $24 billion), which are projected to create nearly 1.93 lakh (193,000) employment opportunities. He highlighted India's broader economic advancements, noting that the nation's foreign exchange reserves have surpassed $700 billion. Furthermore, he pointed out that in 2024-25, 46 percent of global digital transactions took place in India, showcasing the country's digital growth.

Strategic Initiatives and Market Growth

India's push into semiconductor manufacturing is underpinned by the India Semiconductor Mission (ISM), launched in December 2021 with an outlay of ₹76,000 crore (around $10 billion). This mission aims to foster a comprehensive ecosystem for semiconductor and display manufacturing, reducing import dependence and establishing India as a key player in the global supply chain. As of late 2025, the ISM has approved 10 projects across six states, attracting cumulative investments exceeding ₹1.60 lakh crore (approximately $18 billion). These projects include:

• Establishment of fabrication plants and advanced packaging facilities.
• Development of compound semiconductors.
• Focus on chip design capabilities.

The domestic semiconductor market, valued at approximately US$38 billion in 2023, is projected to reach around US$109 billion by 2030, driven by demand from various sectors including smartphones, automotive electronics, and industrial automation. Several Indian states, including Gujarat (the first to introduce a dedicated Semiconductor Policy in 2022–2027), Karnataka, Tamil Nadu, Uttar Pradesh, Andhra Pradesh, and Odisha, have also introduced their own policies to complement the national mission and attract investments.

Future Outlook

Significant milestones in 2025 include the inauguration of India's first centers for advanced 3-nanometer chip design in Noida and Bengaluru. Additionally, India's first indigenous semiconductor chip is expected to be ready for production this year, with five production units currently under construction. These developments signify India's accelerated efforts to build a resilient and self-sufficient semiconductor ecosystem, positioning it for future export capabilities.