in 2025 -India’s First Indigenous Semiconductor Chip: A Gamechanger for IoT, RFID & Sensors

India has achieved a historic milestone with the launch of its first 100% indigenous semiconductor chip in semicon 2025,designed and manufactured on home soil. This chip is set to power IoT devices, RFID tags, and sensor systems—a breakthrough moment for a country that has long relied on semiconductor imports.

This step marks the beginning of India’s serious entry into the global semiconductor race, with implications for technology, economics, and MSME opportunities.

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India’s Semiconductor Journey

Early Steps (1960s–1980s)

• Bharat Electronics Limited (BEL) started semiconductor manufacturing in the 1960s.
• In 1984, the Semi-Conductor Laboratory (SCL) in Mohali was set up, contributing chips even to ISRO’s space missions.

Lost Opportunities (1990s–2000s)

• Lack of infrastructure and policy consistency kept India behind while Taiwan’s TSMC and Korea’s Samsung became global leaders.

The Revival (2021–present)

• The Indian government launched the Semiconductor Mission with a ₹76,000 crore package.
• New fabs, testing units, and design incentives were rolled out.
• The launch of the first indigenous chip shows India’s potential to build its own ecosystem.

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Where Are Semiconductors Used?

Semiconductors are the brains of modern electronics. Their applications include:

• Consumer electronics – smartphones, laptops, wearables
• Automotive – electric vehicles (EVs), advanced driver systems
• Industrial & healthcare – automation, robotics, diagnostics
• Defense & aerospace – satellites, communication systems
• Smart cities – IoT sensors, RFID-based logistics

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India vs Global Semiconductor Leaders

Factor	India (Emerging)	Global Leaders (Taiwan, Korea, USA)
Technology Level	28nm–90nm mature nodes	3nm–5nm cutting-edge
Market Share	<1%	TSMC + Samsung control >50%
Strengths	Chip design, IoT, automotive applications	Advanced fabs, AI & HPC chips
Ecosystem	Growing, supported by MSMEs & startups	Mature, globally dominant

India is starting with mature-node chips for IoT and automotive—industries with massive growth potential.

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Economic Benefits of Semiconductor Manufacturing in India

1. Reduced imports – Lower dependence on Taiwan and China.
2. Job creation – Each fab can generate 20,000+ jobs.
3. Export growth – India can tap into the US$600+ billion global semiconductor market.
4. Supply chain resilience – Critical for national security and strategic autonomy.

India’s semiconductor market is projected to grow from US$34 billion in 2023 to over US$100 billion by 2032.

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MSMEs in India’s Semiconductor Business

Can MSMEs Manufacture Chips?

Building fabs requires billions of dollars, so MSMEs usually don’t set up fabs. But they play a key role in design, testing, packaging, and services.

MSME Incentives

The Design-Linked Incentive (DLI) Scheme offers up to ₹15 crore support for MSMEs working on chip design and prototyping.

Emerging Indian Semiconductor Companies

• Sankalp Semiconductors – Global leader in chip design.
• MosChip Technologies – Fabless semiconductor company focusing on IoT.
• Semtronics MicroSystems – Specializes in automotive and communication IC design.
• SPEL Semiconductors – India’s only assembly and testing service provider.
• Tata Elxsi, Vedanta, HCL, Dixon Technologies – Larger players investing heavily in semiconductor growth.

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Conclusion: India’s Silicon Future

The launch of India’s first indigenous semiconductor chip is more than a technical milestone—it’s a turning point.

• For the nation, it reduces dependence on imports and strengthens supply chains.
• For the economy, it promises jobs, exports, and innovation.
• For MSMEs and startups, it opens doors in design, testing, and packaging.

India has finally entered the global chip race—not just as a buyer, but as a builder.

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FAQ: India’s Semiconductor Industry

Q1: What is India’s first indigenous semiconductor chip used for?
It is designed for IoT devices, RFID tags, and sensor systems.

Q2: Why are semiconductors important?
Semiconductors power almost all modern devices, from smartphones and EVs to satellites and medical equipment.

Q3: Who are the global leaders in semiconductor manufacturing?
Taiwan (TSMC), South Korea (Samsung), and the USA (Intel, Nvidia, Qualcomm) are the current global leaders.

Q4: Can MSMEs enter semiconductor manufacturing in India?
Full-scale fabs are too costly, but MSMEs are entering through chip design, testing, packaging, and fabless startups.

Q5: What government schemes support the semiconductor industry?
The Semiconductor Mission with ₹76,000 crore incentives and the Design-Linked Incentive (DLI) scheme for startups/MSMEs.

Q6: How big is the semiconductor market in India?
It is valued at US$34 billion (2023) and projected to cross US$100 billion by 2032.

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