India’s Big Bet on Chips: Ambition, Challenges, and the Way Forward
At Semicon India 2025 held recently, the Prime Minister declared, “when the chips are down, you can bet on India”. The event showcased the country’s first indigenous microprocessor, Vikram, developed by ISRO’s Semiconductor Lab, and announced that commercial chip production will begin by the end of 2025. India aims to become a global player in semiconductor production, and build self-reliance in a world where global supply chains are shifting rapidly.
Why Semiconductors Matter
Semiconductors power almost everything around us, from laptops and air conditioners to cars and even the tiniest gadget we hardly notice . They’ve rightly been called the “oil of the digital age” because our entire digital world depends on them. But the global supply chain for chips is heavily concentrated. Taiwan alone makes over 60% of the world’s semiconductors and nearly 90% of the most advanced ones. Rising tensions between China and Taiwan have only shown how fragile and risky this dependence can be for the rest of the world. For India, building its own semiconductor base is not just about technology, it is about economic security and reduced dependence on imports.
India’s Push: The Numbers and Projects
The government has committed nearly US$18 billion across 10 projects, making it one of the country’s largest industrial bets in decades. Under the Production Linked Incentive (PLI) scheme, ₹76,000 crore (about US$9.1 billion) was set aside, of which most has already been allocated.
Key developments include:
- Vikram processor – developed at ISRO’s Semiconductor Lab, fabricated on 180nm technology.
- CG Power facility in Sanand, Gujarat – launched in 2024, scaling chip assembly and testing.
- Micron’s investment – ₹22,500+ crore in Gujarat for packaging and testing.
- Tata Electronics–PSMC partnership – ₹91,000 crore tie-up with Taiwan’s Powerchip for fabs.
The domestic market, valued at US$38 billion in 2023, is expected to touch US$100–110 billion by 2030 if growth sustains.
The Technology Gap
While the Vikram chip, a 32 bit microprocessor, is a proud milestone, it highlights the technology gap India faces. The chip was fabricated using a 180nm CMOS process, a process that was cutting-edge back in the early 2000s. Today, companies like TSMC and Samsung are already producing 3nm chips for smartphones and AI servers, whereas those like Nvidia and Apple have developed chips 2ith 64-bit processing capabilities.
This means India's main focus, to become self-reliant in the mature end of the spectrum useful for space, defense, and automotives and electronics, is far from the global cutting edge. Bridging this gap will require both time and deep technical expertise.
Talent and Design Strengths
On the positive side, India already contributes around 20% of global semiconductor design talent. Two advanced design centers—one in Noida and another in Bengaluru—are working on 3nm designs. The government’s Design Linked Incentive scheme has cleared 20+ projects to nurture startups in chip design.
Over 60,000 engineers have been trained under various programs, but scaling this to the hundreds of thousands needed for fabs remains a challenge. Unlike software development, semiconductor fabrication demands highly specialised skills in process engineering, yield optimization, and supply chain logistics.
Lessons from Global Players
Countries like Taiwan, South Korea, and the US didn’t build their chip industries overnight. Taiwan’s TSMC spent decades and billions of dollars mastering yield rates and building trust with clients. The US recently passed the CHIPS and Science Act to revive domestic production, while the EU has its own Chips Act. Japan, too, has pledged billions, including ¥10 trillion in cooperation with India.
These examples show that success depends not just on funding , but also on harmony between government and private players, consistent execution, ecosystem building, and global partnerships.
The Challenges Ahead
India’s ambitions face several hurdles:
- Capital intensity – A single leading-edge fab costs US$10–20 billion, and requires constant upgrades.
- Supply chain complexity – Hundreds of chemicals, gases, and precision tools are needed, many of which India doesn’t yet produce domestically.
- Technology transfer – Advanced lithography machines (from ASML in the Netherlands, for example) are tightly controlled and not easily available.
- Execution risks – Moving from announcements to commercially viable fabs with competitive yields is where many countries have stumbled.
The Way Forward
India has big ambitions in the field of semi-conductor design and manufacturing, with the goal of becoming a major global exporter instead of importer. The country appears to be adopting a step-by-step approach, starting with assembly, testing, and mature-node fabs, while simultaneously investing in design, research, and talent. Every successful global power in this industry first mastered older nodes before advancing to cutting-edge levels.
At the same time, international collaborations with players like Micron, Tata-PSMC, and Japan will be critical for technology transfer and capacity building. If India can combine its engineering talent, rising domestic demand, and government backing with the PLI scheme, and drive global collaborations, the outlook can be promising.
Conclusion
India’s semiconductor story is just beginning, but the direction is clear. The Vikram processor and investment announcement at Semicon 2025 shows the intent of the government. The hard part now lies ahead: moving from prototypes to large-scale production and globally competitive fabs in an industry that demands substantial investment, flawless execution, and years of patience.
Yet the stakes couldn’t be higher. Semiconductors will shape the future of economies and national security . If India plays its cards right by nurturing talent, innovating and researching, and driving global partnerships, the dream of becoming a global semiconductor hub may well move from ambition to reality.
References
- https://www.ndtv.com/india-news/when-chips-are-down-bet-on-india-pm-narendra-modis-big-semiconductor-push-6539317
- https://www.indiatoday.in/science/story/what-is-vikram-32-bit-chip-presented-to-pm-modi-at-semicon-india-2025-2780582-2025-09-02#
- https://www.visionofhumanity.org/the-worlds-dependency-on-taiwans-semiconductor-industry-is-increasing/
- https://m.economictimes.com/tech/artificial-intelligence/tata-electronics-and-powerchip-semiconductor-manufacturing-corporation-to-build-indias-first-semiconductor-fab/articleshow/113694273.cms
- https://www.business-standard.com/economy/news/10-trillion-yen-in-10-years-japan-pledges-big-investment-in-india-125082901564_1.html
- https://www.oecd.org/content/dam/oecd/en/publications/reports/2023/06/vulnerabilities-in-the-semiconductor-supply-chain_f4de7491/6bed616f-en.pdf
- https://techwireasia.com/2025/09/semiconductor-india-commercial-production-2025/
Related Blogs
Introduction
The appeal is to be heard by the TDSAT (telecommunication dispute settlement & appellate tribunal) regarding several changes under Digital personal data protection. The Changes should be a removal of the deemed consent, a change in appellate mechanism, No change in delegation legislation, and under data breach. And there are some following other changes in the bill, and the digital personal data protection bill 2023 will now provide a negative list of countries that cannot transfer the data.
New Version of the DPDP Bill
The Digital Personal Data Protection Bill has a new version. There are three major changes in the 2022 draft of the digital personal data protection bill. The changes are as follows: The new version proposes changes that there shall be no deemed consent under the bill and that the personal data processing should be for limited uses only. By giving the deemed consent, there shall be consent for the processing of data for any purposes. That is why there shall be no deemed consent.
- In the interest of the sovereignty
- The integrity of India and the National Security
- For the issue of subsidies, benefits, services, certificates, licenses, permits, etc
- To comply with any judgment or order under the law
- To protect, assist, or provide service in a medical or health emergency, a disaster situation, or to maintain public order
- In relation to an employee and his/her rights
The 2023 version now includes an appeals mechanism
It states that the Board will have the authority to issue directives for data breach remediation or mitigation, investigate data breaches and complaints, and levy financial penalties. It would be authorised to submit complaints to alternative dispute resolution, accept voluntary undertakings from data fiduciaries, and advise the government to prohibit a data fiduciary’s website, app, or other online presence if the terms of the law were regularly violated. The Telecom Disputes Settlement and Appellate Tribunal will hear any appeals.
The other change is in delegated legislation, as one of the criticisms of the 2022 version bill was that it gave the government extensive rule-making powers. The committee also raised the same concern with the ministry. The committed wants that the provisions that cannot be fully defined within the scope of the bill can be addressed.
The other major change raised in the new version bill is regarding the data breach; there will be no compensation for the data breach. This raises a significant concern for the victims, If the victims suffer a data breach and he approaches the relevant court or authority, he will not be awarded compensation for the loss he has suffered due to the data breach.
Need of changes under DPDP
There is a need for changes in digital personal data protection as we talk about the deemed consent so simply speaking, by ‘deeming’ consent for subsequent uses, your data may be used for purposes other than what it has been provided for and, as there is no provision for to be informed of this through mandatory notice, there may never even come to know about it.
Conclusion
The bill requires changes to meet the need of evolving digital landscape in the digital personal data protection 2022 draft. The removal of deemed consent will ultimately protect the data of the data principal. And the data of the data principal will be used or processed only for the purpose for which the consent is given. The change in the appellate mechanism is also crucial as it meets the requirements of addressing appeals. However, the no compensation for a data breach is derogatory to the interest of the victim who has suffered a data breach.
Introduction
India plans to draft the first AI regulations framework. The draft will be discussed and debated in June-July this year as stated by Union Minister of Skill Development and Entrepreneurship Rajeev Chandrasekhar. He aims to harness AI for economic growth, healthcare, and agriculture, ensuring its significant impact. The Indian government plans to fully utilise AI for economic growth, focusing on healthcare, drug discovery, agriculture, and farmer productivity.
Government Approach to Regulating AI
Chandrasekhar stated that the government's approach to AI regulation involves establishing principles and a comprehensive list of harms and criminalities. They prefer clear platform standards to address bias and misuse during model training rather than regulating AI at specific stages of its development. Union Minister Chandrasekhar also highlights the importance of legal compliance and the risks faced by entrepreneurs who disregard regulations in the digital economy. He warned of "severe consequences" for non-compliance.
Addressing the opening session of the two-day Nasscom leadership summit in Mumbai, the Union minister added that the intention is to harness AI for economic growth and address potential risks and harms. Mr. Chandrasekhar stated that the government is committed to developing AI-skilled individuals. He also highlighted the importance of a global governance framework that deals with the safety and trust of AI.
Union Minister Chandrasekhar also said that 900 million Indians online and 1.3 billion people will be connected to the global internet soon, providing India with both an opportunity and a responsibility to collaborate on regulations to establish legal safeguards that protect consumers and citizens. He further added that the framework is being retrofitted to address the complexity and impact of AI in safety infrastructure. The goal is to ensure legal guardrails for Al, a kinetic enabler of the digital economy, safety and trust, and accountability for those using the AI platform.
Prioritizing Safety and Trust in AI Development
Union minister Chandrasekhar announced that the framework will be discussed at the upcoming Global Partnership on Artificial Intelligence (GPAI) event, a multi-stakeholder initiative with 29 member countries aiming to bridge the gap between theory and practice on AI by supporting research on AI-related priorities. Chandrasekhar emphasises the importance of safety and trust in generative AI development. He believes that every platform must be legally accountable for any harm it causes or enables and should not enable criminality. He advocated for safe and trustworthy AI.
Conclusion
India is drafting its first AI regulation framework, as highlighted by Union Minister Rajeev Chandrasekhar. This framework aims to harness the potential of AI while ensuring safety, trust, and accountability. The framework will focus on principles, comprehensive standards, and legal compliance to navigate the complexities of AI's impact on sectors like healthcare, agriculture, and the digital economy. India recognises the need for robust legal safeguards to protect citizens and foster innovation and economic growth while fostering a culture of trustworthy AI development.
References:
- https://www.livemint.com/ai/artificial-intelligence/india-to-come-up-with-ai-regulations-framework-by-june-july-this-year-rajeev-chandrasekhar-msde-11708409300377.html
- https://timesofindia.indiatimes.com/business/india-business/india-to-develop-draft-ai-framework-by-june-july-chandrasekhar/articleshow/107865548.cms
- https://newsonair.gov.in/News?title=Government-to-come-out-with-draft-regulatory-framework-for-Artificial-Intelligence-by-July-2024&id=477637
Executive Summary:
A photographer breaking down in tears in a viral photo is not connected to the Ram Mandir opening. Social media users are sharing a collage of images of the recently dedicated Lord Ram idol at the Ayodhya Ram Mandir, along with a claimed shot of the photographer crying at the sight of the deity. A Facebook post that posts this video says, "Even the cameraman couldn't stop his emotions." The CyberPeace Research team found that the event happened during the AFC Asian Cup football match in 2019. During a match between Iraq and Qatar, an Iraqi photographer started crying since Iraq had lost and was out of the competition.
Claims:
The photographer in the widely shared images broke down in tears at seeing the icon of Lord Ram during the Ayodhya Ram Mandir's consecration. The Collage was also shared by many users in other Social Media like X, Reddit, Facebook. An Facebook user shared and the Caption of the Post reads,
Fact Check:
CyberPeace Research team reverse image searched the Photographer, and it landed to several memes from where the picture was taken, from there we landed to a Pinterest Post where it reads, “An Iraqi photographer as his team is knocked out of the Asian Cup of Nations”
Taking an indication from this we did some keyword search and tried to find the actual news behind this Image. We landed at the official Asian Cup X (formerly Twitter) handle where the image was shared 5 years ago on 24 Jan, 2019. The Post reads, “Passionate. Emotional moment for an Iraqi photographer during the Round of 16 clash against ! #AsianCup2019”
We are now confirmed about the News and the origin of this image. To be noted that while we were investigating the Fact Check we also found several other Misinformation news with the Same photographer image and different Post Captions which was all a Misinformation like this one.
Conclusion:
The recent Viral Image of the Photographer claiming to be associated with Ram Mandir Opening is Misleading, the Image of the Photographer was a 5 years old image where the Iraqi Photographer was seen Crying during the Asian Cup Football Competition but not of recent Ram Mandir Opening. Netizens are advised not to believe and share such misinformation posts around Social Media.
- Claim: A person in the widely shared images broke down in tears at seeing the icon of Lord Ram during the Ayodhya Ram Mandir's consecration.
- Claimed on: Facebook, X, Reddit
- Fact Check: Fake
