The Silicon Revolution of Bharat
From SEMICON 2025 to Sanand: How Bharat’s Semiconductor Revolution Is Taking Shape
Part I — Vision Meets Execution
Semiconductors have emerged as the strategic foundation of the 21st century. From smartphones, electric vehicles, artificial intelligence, and cloud computing to satellites, defence systems, aerospace technologies, and advanced medical equipment, nearly every modern innovation is powered by semiconductor chips. Consequently, nations that design and manufacture semiconductors are no longer merely industrial powers—they are becoming technological, economic, and geopolitical leaders.
For decades, Bharat remained one of the world’s largest consumers of semiconductors while relying overwhelmingly on imports to meet its domestic demand. However, over the past few years, the country has begun laying the foundations of an indigenous semiconductor ecosystem through policy reforms, financial incentives, research initiatives, and strategic public-private partnerships.
The conclusion of SEMICON 2025, followed by the inauguration of multiple semiconductor manufacturing facilities in Sanand, Gujarat, marks an important transition in Bharat’s semiconductor journey—from ambitious policy announcements to tangible industrial execution. Together, these developments indicate that Bharat is steadily moving towards technological self-reliance under the broader vision of Aatmanirbhar Bharat and Viksit Bharat 2047.
SEMICON 2025: Laying the Foundation
SEMICON 2025 concluded successfully with participation from more than 350 exhibiting companies representing 33 countries, making it one of the largest semiconductor gatherings ever hosted in Bharat.
Among the event’s biggest highlights was the unveiling of “Vikram”, Bharat’s indigenously developed 32-bit processor, developed by the Vikram Sarabhai Space Centre (VSSC) in collaboration with ISRO’s Semiconductor Laboratory (SCL), Chandigarh. The processor represents an important milestone in strengthening indigenous capabilities in critical technologies and reducing dependence on imported processors for strategic applications.
SEMICON 2025 demonstrated that Bharat’s semiconductor ambitions extend far beyond attracting investments. It showcased the country’s growing capabilities in semiconductor design, packaging, testing, research, manufacturing, and talent development—laying the groundwork for a comprehensive semiconductor ecosystem.
From Vision to Reality: Sanand Signals a New Beginning
If SEMICON 2025 represented Bharat’s vision, Sanand represents its execution.
On 4 July 2026, Prime Minister Narendra Modi inaugurated the Micron Technology ATMP (Assembly, Testing, Marking and Packaging) facility at Sanand, Gujarat. Built with an investment of nearly US$2.75 billion (approximately ₹22,500 crore), the project marks one of the largest investments in Bharat’s semiconductor sector.
The Sanand facility is more than a manufacturing unit—it represents Bharat’s entry into the global semiconductor supply chain through advanced packaging and testing capabilities.
The momentum does not stop there.
Several other landmark semiconductor projects are simultaneously taking shape across the country:
1.CG Semi OSAT Facility with an investment of approximately ₹7,600 crore.
2.Kaynes Semicon OSAT Plant, involving investments of nearly ₹3,300 crore.
3.Tata Electronics–PSMC Semiconductor Fab with an estimated investment exceeding ₹91,000 crore.
4.Tata Semiconductor Assembly and Test Facility in Morigaon, Assam, with investments of approximately ₹27,000 crore.
Collectively, these projects demonstrate that Bharat’s semiconductor ambitions are no longer confined to policy papers—they are steadily materialising into manufacturing infrastructure.
Why Semiconductor Self-Reliance Matters
According to estimates by NITI Aayog, the country’s semiconductor imports currently exceed US$30 billion annually, with demand expected to grow rapidly over the coming decade. If domestic manufacturing capacity is not developed at scale, Bharat’s semiconductor import bill could rise to nearly US$240 billion by 2035, placing significant pressure on foreign exchange reserves and industrial competitiveness.
A substantial share of these imports currently originates from China, Hong Kong, and Taiwan, making Bharat particularly vulnerable to global supply chain disruptions and geopolitical uncertainties.
The COVID-19 pandemic, followed by growing geopolitical tensions and supply chain disruptions, exposed the risks associated with excessive dependence on foreign semiconductor manufacturing. Production slowdowns affected industries ranging from automobiles and consumer electronics to defence manufacturing and telecommunications.
For Bharat, semiconductor self-reliance is therefore not merely an industrial objective—it has become a strategic necessity.
The Bharat Semiconductor Mission
Recognising these challenges, the Government launched the India Semiconductor Mission (ISM) in 2021 under the Ministry of Electronics and Information Technology (MeitY), with an initial outlay of ₹76,000 crore.
Since then, cumulative approved investments have crossed ₹1.6 lakh crore, supporting the establishment of multiple semiconductor facilities across different states.
The mission rests on several key pillars:
• Production Linked Incentive (PLI) Scheme, providing fiscal support of up to 50 percent for semiconductor fabrication and packaging facilities.
• Design Linked Incentive (DLI) Scheme, encouraging indigenous semiconductor design, intellectual property development, and startup innovation.
• Promotion of Assembly, Testing, Marking and Packaging (ATMP) and Outsourced Semiconductor Assembly and Test (OSAT) facilities to strengthen domestic manufacturing capabilities.
The government’s updated Semicon 2.0 strategy further shifts emphasis towards indigenous product development, advanced semiconductor design, and home-grown intellectual property, signalling Bharat’s intention to move beyond assembly into high-value semiconductor innovation.
Beyond Economics: A Question of National Security
“Semiconductors today are as strategically significant as oil was during the twentieth century.”
Modern defence platforms—including fighter aircraft, missiles, drones, satellites, radar systems, secure communications, cyber defence infrastructure, and artificial intelligence-enabled warfare—depend extensively upon advanced semiconductor technologies.
Heavy reliance on imported chips inevitably raises concerns regarding supply security, technology access, cyber resilience, and long-term strategic autonomy.
While imported semiconductor components undergo multiple layers of certification and security validation before deployment in sensitive systems, excessive dependence on foreign manufacturing ecosystems still exposes countries to supply disruptions, export controls, and geopolitical risks during periods of international conflict or technological competition.
For Bharat, therefore, developing indigenous semiconductor capabilities is not only about economic growth—it is equally about strengthening technological sovereignty and national resilience.
Part II — Building a Semiconductor Powerhouse
Rare Earth Minerals: The Missing Link
Despite rapid progress in semiconductor manufacturing, one of Bharat’s biggest structural challenges lies upstream in the semiconductor value chain—critical minerals and rare earth elements.
Semiconductor manufacturing depends upon materials such as gallium, germanium, silicon carbide, tungsten, cobalt, lithium and several rare earth elements that are indispensable for producing high-performance chips, power electronics and advanced defence technologies.
At present, Bharat continues to import a significant proportion of these critical minerals, making the semiconductor ecosystem vulnerable to external supply disruptions and geopolitical uncertainties.
Recognising this strategic vulnerability, the Government has launched the National Critical Mineral Mission, aimed at strengthening domestic exploration, mining, processing and recycling capabilities. The mission also seeks to diversify overseas sourcing through strategic partnerships while encouraging research into alternative materials and sustainable extraction technologies.
Complementing this effort is the establishment of Bharat’s first Silicon Carbide fabrication facility in Bhubaneswar, Odisha, which is expected to play a crucial role in developing next-generation power semiconductors used in electric mobility, renewable energy, aerospace and defence.
Building fabrication plants without securing raw materials would leave Bharat dependent on external supply chains. Therefore, achieving semiconductor self-reliance requires an integrated strategy spanning mining, material processing, chip fabrication, assembly and packaging.
Innovation Beyond Manufacturing: Building Bharat’s Own Intellectual Property
Manufacturing chips alone does not guarantee technological leadership.
Encouragingly, Bharat already enjoys a strong position in global semiconductor design. Several leading technology companies—including Intel, Qualcomm, NVIDIA, AMD, Texas Instruments and MediaTek—operate major research and development centres in Bharat, employing thousands of Indian engineers who contribute to the design of globally deployed semiconductor products.
However, while much of the engineering talent is Indian, a significant proportion of the intellectual property generated remains owned by foreign corporations.
Recognising this gap, Bharat is increasingly promoting indigenous chip architecture through initiatives such as the Digital India RISC-V (DIR-V) Programme, supporting open-source processor development and reducing dependence on expensive proprietary licensing models.
Projects such as SHAKTI, DHRUV, and the recently unveiled Vikram processor represent important milestones towards building an indigenous semiconductor design ecosystem capable of serving both civilian and strategic applications.
Simultaneously, the Semiconductor Integrated Circuits Layout-Design Act, 2000, enacted under India’s commitments to the TRIPS Agreement, provides legal protection to original semiconductor layout designs, encouraging innovation while strengthening confidence among investors and domestic designers.
Ultimately, a globally competitive semiconductor ecosystem will depend not only on manufacturing facilities but also on Bharat’s ability to own the technologies it creates.
Employment, Economic Growth and Industrial Transformation
The semiconductor industry possesses one of the highest economic multiplier effects among advanced manufacturing sectors.
According to government estimates, investments approved under the Bharat Semiconductor Mission are expected to generate nearly one million direct and indirect employment opportunities by 2033, spanning research, engineering, fabrication, assembly, logistics, equipment manufacturing and supporting industries.
Beyond employment, semiconductor manufacturing has the potential to catalyse the growth of an entire industrial ecosystem involving precision engineering, specialty chemicals, clean-room infrastructure, automation, robotics, advanced packaging, electronic manufacturing services and high-end component manufacturing.
This transformation could significantly reduce Bharat’s dependence on imported electronics while simultaneously strengthening exports, improving the trade balance and attracting sustained foreign direct investment.
For a country aspiring to become a US$30 trillion economy under the vision of Viksit Bharat 2047, semiconductors are not simply another industrial sector—they are foundational infrastructure for future economic growth.
The Global Semiconductor Race
The semiconductor industry has increasingly become the centre of geopolitical competition.
The ongoing technological rivalry between the United States and China, export restrictions on advanced chipmaking equipment, growing concerns over supply-chain resilience, and the strategic importance of Taiwan have fundamentally reshaped the global semiconductor landscape.
Countries across Europe, North America and Asia are investing billions of dollars to localise semiconductor production and diversify supply chains.
In this evolving environment, Bharat has emerged as an attractive destination under the broader “China Plus One” and friend-shoring strategies adopted by multinational corporations seeking resilient manufacturing alternatives.
Bharat’s demographic advantage, expanding domestic market, democratic governance, policy incentives and engineering talent together position it as one of the most promising long-term semiconductor destinations.
However, sustaining this momentum will require consistent policy implementation, infrastructure development and long-term investor confidence.
Challenges That Still Demand Attention
While the progress achieved over the past few years is encouraging, Bharat’s semiconductor ambitions continue to face several structural challenges.
The establishment of a state-of-the-art semiconductor fabrication facility requires investments often exceeding US$10 billion, making semiconductor manufacturing one of the most capital-intensive industries in the world.
Furthermore, access to advanced lithography equipment remains concentrated among a handful of global companies, while technology transfer in strategic sectors continues to be shaped by national security considerations and intellectual property restrictions.
Other challenges include:
•Dependence on imported critical minerals and specialty chemicals.
•High consumption of electricity and ultra-pure water required for semiconductor fabrication.
•Global tariff uncertainties and trade restrictions.
•Shortage of highly specialised fabrication engineers and technicians.
•Limited domestic ownership of cutting-edge semiconductor intellectual property.
•The need for faster regulatory approvals and stronger industry-academia collaboration.
From Assembly to Innovation: The Road Ahead
The first phase of Bharat’s semiconductor strategy focused primarily on Assembly, Testing, Marking and Packaging (ATMP) facilities.
The next phase—popularly referred to as Semicon 2.0—places significantly greater emphasis on indigenous product development, advanced semiconductor design, fabrication technologies and globally competitive intellectual property.
Simultaneously, Bharat aims to build a skilled workforce of nearly 85,000 engineers in VLSI and embedded systems, supported by dedicated investments in semiconductor education, research and innovation.
If these objectives are achieved alongside continued investments in fabrication facilities, critical minerals and domestic design capabilities, Bharat could gradually transition from being one of the world’s largest semiconductor importers to becoming an important participant in the global semiconductor value chain.
Yet the journey ahead will require patience. Semiconductor ecosystems are built over decades—not years—and sustained success will depend on policy consistency, institutional efficiency and technological innovation.
Editor’s Eye
The conclusion of SEMICON 2025 and the commissioning of major semiconductor facilities in Sanand, Morigaon and other emerging manufacturing clusters signify more than isolated industrial milestones—they represent Bharat’s gradual transition from being a predominantly technology-consuming nation to one that increasingly seeks to design, manufacture and innovate at scale.
The Government’s semiconductor strategy deserves recognition for moving beyond policy intent towards implementation. Through the India Semiconductor Mission, production-linked incentives, support for indigenous design, and investments exceeding ₹1.6 lakh crore, Bharat has begun laying the foundations of a domestic semiconductor ecosystem. These initiatives are expected to strengthen manufacturing capabilities, generate high-skilled employment, attract global investments and improve supply-chain resilience in one of the world’s most strategically significant industries.
However, celebrating these achievements should not prevent a realistic assessment of the road ahead.
Semiconductor manufacturing remains one of the most technologically sophisticated industries ever developed by humanity. Building fabrication plants is only one component of a much larger ecosystem that depends upon advanced research laboratories, specialised equipment, critical minerals, reliable power infrastructure, ultra-pure water systems, globally competitive universities, precision manufacturing and, above all, continuous innovation.
For Bharat, the next phase of growth must therefore focus not merely on expanding manufacturing capacity but on developing indigenous technological capabilities.
Domestic ownership of semiconductor intellectual property, increased investment in research and development, stronger collaboration between academia and industry, simplified regulatory processes and the retention of highly skilled scientific talent will ultimately determine whether Bharat becomes a genuine semiconductor power or remains primarily an assembly destination.
Equally important is securing the upstream supply chain. The National Critical Mineral Mission is a timely initiative, yet sustained efforts will be required to reduce dependence on imported rare earth elements and strategic materials. In a world where technology is increasingly influenced by geopolitics, resource security has become inseparable from national security.
The global semiconductor race is unlikely to be won through financial incentives alone. It will be shaped by the ability to cultivate innovation, protect intellectual property, develop world-class research institutions and create an ecosystem where scientific excellence, entrepreneurship and manufacturing reinforce one another.
Bharat also stands at a favourable geopolitical moment. As global companies diversify supply chains under the China Plus One strategy and governments seek resilient manufacturing partners, Bharat possesses a unique opportunity to position itself as a trusted semiconductor destination. Converting this opportunity into sustained leadership, however, will require policy continuity that extends beyond electoral cycles and institutional reforms that encourage efficiency, transparency and long-term investor confidence.
The vision of Viksit Bharat 2047 cannot rest solely upon demographic advantages or ambitious announcements. It must be built upon technological capability, scientific excellence, industrial competitiveness and resilient institutions.
From being one of the world’s largest importers of semiconductors to aspiring to become one of the leading semiconductor manufacturing nations, Bharat has undoubtedly taken significant strides over the past few years.
Yet the real measure of success will not be the number of investment announcements or factories inaugurated.
It will be measured by whether the next generation of semiconductor technologies powering artificial intelligence, quantum computing, autonomous mobility, defence systems, space exploration and advanced computing can proudly carry the inscription:
“Designed, Developed and Manufactured in Bharat.”
If the momentum created through SEMICON 2025, the India Semiconductor Mission and the emerging manufacturing ecosystem is sustained through sound policymaking, institutional efficiency and continuous innovation, Bharat will not merely participate in the global semiconductor revolution—it will help shape its future.
That, perhaps, would be the true realization of Aatmanirbhar Bharat.
“The race for semiconductor leadership is ultimately a race for technological sovereignty.”
Rituraj Dubey
Founder & Editor-in-Chief
The Fourth Dimension
Vishal Namdev
Co-Founder & Executive Editor | Head, Technology Desk
The Fourth Dimension