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India to Roll out First “Made-in-India” Packaged Chip by December 2025, says Minister of State

Minister Jitin Prasada announced that India’s first packaged semiconductor chip will debut by December 2025, marking progress in the ₹76,000 crore Semiconductor Mission. With over ₹1.6 lakh crore approved investments, India is building fabs, ATMP units and design support under ISM to create a full chip ecosystem

AI Chip
Summary
  • India’s first domestically packaged semiconductor chip expected by December 2025, per Minister Jitin Prasada

  • Government aligning full chip supply chain, design, assembly, manufacturing, exports

  • Builds on Ashwini Vaishnaw’s “Made in India” chip vision unveiled at Davos 2025

  • India Semiconductor Mission (₹76,000 crore, launched 2021) backing fabrication, display and chip design

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India’s first domestically packaged semiconductor chip is expected to debut by December 2025, Minister of State for Electronics and Information Technology Jitin Prasada said, underscoring progress in the country’s nascent but fast-expanding semiconductor ecosystem.

Prasada told ANI that the government has been aligning the chip supply chain, from design and assembly/testing to manufacturing and exports, with the aim of producing components for global markets.

His comments build on Union minister Ashwini Vaishnaw’s unveiling of a “Made in India” chip vision at Davos earlier this year and follow reports that Kaynes Semicon had targeted a mid-2025 delivery of the first packaged chip, though it remains unclear if that timeline was met.

Scaling India’s Semiconductor Ecosystem

India is building capabilities under the India Semiconductor Mission (ISM), launched in December 2021 with an outlay of ₹76,000 crore to support fabrication, display manufacturing and chip design. Last week the Union Cabinet cleared four new projects worth ₹4,594 crore, including two in Bhubaneswar and one each in Punjab and Andhra Pradesh.

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So far, 10 semiconductor projects with cumulative investments of over ₹1.6 lakh crore have been approved across six states, Gujarat, Assam, Uttar Pradesh, Punjab, Odisha and Andhra Pradesh. These projects are at various stages of implementation, with commercial production expected within one to five years.

Vaishnaw has said India is developing a commercial-scale silicon-based fab with capacity of about 50,000 wafer starts per month. Six semiconductor units, one fab and five assembly, testing, marking and packaging (ATMP) facilities, are in planning, construction or execution, while four more projects, including a silicon carbide fab and three ATMP units with advanced packaging, were recently approved. Officials say this reflects the emergence of a complete ecosystem spanning design, fabrication, packaging, equipment and materials.

Policy, Incentives & Skills

The Semicon India programme provides fiscal support of up to 50% of project costs for setting up CMOS fabs and display fabs, as well as incentives for compound semiconductors, silicon photonics, sensors, discrete fabs and ATMP/OSAT facilities. To encourage chip design, the government has approved a Design Linked Incentive (DLI) Scheme with an outlay of ₹1,000 crore.

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Seventy-two design companies, including startups and MSMEs, have secured support under DLI, with 23 cleared for production-linked aid to develop chips and SoCs for applications in automotive, computing, communications and mobility.

To address a skills gap, the government has rolled out a new AICTE curriculum for VLSI design and semiconductor manufacturing, and is supplying EDA tools for chip design. It has also forged international cooperation through MoUs with the US, EU, Japan and Singapore. Officials estimate approved projects could generate more than 29,000 direct jobs. Industry forecasts suggest India’s semiconductor market could reach $150 billion by 2030.

The government is weighing a second phase of ISM support and additional measures to back chip design and packaging projects.

AI Mission & Upcoming Events

Separately, Prasada outlined progress on the IndiaAI Mission, a seven-pillar programme spanning compute infrastructure, foundation models, application development, startups, skills, safe AI and AIKosha, a knowledge platform.

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He said focus group and public consultations are complete and announced that India will host an AI Impact Summit in February 2026, with pre-summit proposals invited between August 11, 2025 and January 31, 2026.

India’s semiconductor push hinges on stitching together design, fabrication, packaging and skills development with the right incentives. Whether the country meets its December 2025 milestone for the first packaged chip will depend on execution timelines and the readiness of assembly and packaging partners.

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