India To Launch 'Made-in-India' Semiconductor Chips By Year-End: PM Modi

PM Modi announced that India will release its own semiconductor chips by the year's end, part of the India Semiconductor Mission. This initiative aims for self-reliance in technology and critical minerals.

Prime Minister Narendra Modi, in his Independence Day speech from the Red Fort, revealed that India will have its own semiconductor chips available by the year's end. This announcement signifies a pivotal moment in India's technological progress. "To the youth of the nation and to those around the world who understand India's technological strength, I want to say this: by the end of this very year, 'Made-in-India' chips will be available in the market," he stated.

The Prime Minister highlighted that six semiconductor manufacturing units are being established, with four already approved. This initiative is part of a broader effort to make India self-reliant in semiconductor production. Reflecting on history, PM Modi noted that India's semiconductor plans began 50-60 years ago but were stalled due to bureaucratic delays.

India's Semiconductor Ambitions

India's ambitions in chip-making received a boost with the approval of four new projects under the India Semiconductor Mission (ISM). These projects involve an investment of Rs 4,600 crore and will be located in Odisha, Andhra Pradesh, and Punjab. The government aims to position India as a global hub for semiconductor manufacturing amid changing geopolitical dynamics.

PM Modi also stressed the importance of critical minerals for various sectors like energy and defence. He announced the launch of the National Critical Minerals Mission to achieve self-reliance in this area. "Today, the entire world has become alert about critical minerals, and people have come to fully understand their strategic importance," he said.

Focus on Critical Minerals

The mission involves exploration at over 1,200 sites across India to secure essential minerals. The government is working on diversifying rare earth supplies through imports, domestic mining, and international collaborations. Efforts include research investments to enhance refining capabilities within India.

Kamran Rizvi from the Ministry of Heavy Industry shared that Rs 1,345 crore has been allocated for rare earth magnets production incentives. This scheme supports converting rare earth oxides into magnets by providing end-to-end assistance for processing facilities.

The Union Cabinet approved the National Critical Mineral Mission (NCMM) in January 2025 with a budget of Rs 16,300 crore. Public Sector Undertakings are expected to invest Rs 18,000 crore as part of this mission. These efforts aim to ensure stable access to rare earth materials while fostering international cooperation.

India's renewed focus on semiconductors and critical minerals underscores its commitment to becoming self-sufficient in these crucial sectors. By addressing past delays and investing strategically, India seeks to establish itself as a key player on the global stage.