India Enjoys 15–30% Cost Advantage in Electronics Manufacturing: Vaishnaw at Semicon India 2025

Positioning India as a stronger player in semiconductor manufacturing; a foundational industry for electronics, Union IT and Electronics Minister Ashwini Vaishnaw cited a study indicating that India already produces electronics 15–30% more cost-efficiently than many other countries.

“India has a cost advantage of 15–30% across multiple manufacturing segments of electronics, mobile phones, laptops, and now semiconductors. As fabs move from pilot lines to commercial production, customer validation and acceptance will follow, strengthening India’s position in the global ecosystem, Said Vaishnaw.

On Tuesday morning, at the inaugural session of Semicon India 2025, IT and Electronics Minister Ashwini Vaishnaw presented the first ‘Made in India’ chip, the Vikram-32 processor to Prime Minister Narendra Modi.

The chip has been developed by the Indian Space Research Organisation’s Semiconductor Laboratory (SCL).

Highlighting India’s rapid progress on its semiconductor mission, Vaishnaw emphasized that exports will be a key focus, noting that of the ten sanctioned projects, production is aimed not only at meeting domestic demand but also serving the global market.

Vaishnaw also highlights that In ISM 2.0 (Indian Semiconductor Mission), significant focus will also go to equipment manufacturers, material suppliers, and other ecosystem partners

“In ISM 2.0 support will be extended for developing complete products, chipsets designed and developed in India, with IP and companies incorporated here. These will be over and above what was done under ISM 1.0,” he added.

Alongside the various project announcements, on India’s plans to develop its own AI chip or GPU, Vaishnaw said developing processors is definitely a priority.

“A lot of work is already underway, with institutions like IIT Madras, C-DAC, and others actively engaged in this effort,” he added.

What timelines are you working with for the newly announced fabs and ATMP units? And given that other countries are offering huge incentives, how do we remain competitive?

As different countries roll out huge incentives for the semiconductor industry, S. Krishnan, Secretary, Ministry of Electronics & IT, explained India’s strategy to stay competitive.

He said that while different nations are focusing on different semiconductor nodes, India is targeting the nodes that best suit its economy.

“There is no direct conflict. This industry has always been foundational and subsidized by governments worldwide, and India is no exception. Our approach is calibrated, and the results are already visible in the number of companies that have come forward and the projects announced,’ he added.”

When asked whether stronger relations with China could offer an alternative to the West, Vaishnaw stressed that all major successes in the semiconductor sector globally have been built on collaborations.

Over 20,750 attendees will participate in Semicon India 2025, including more than 2,500 delegates from over 48 countries, over 150 speakers, including over 50 global leaders, and more than 350 exhibitors. It will also include 6 countries Round Table discussions, country pavilions and dedicated pavilions for Workforce Development & Start-Ups among others.