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India’s Chip Industry Expands as Locally Made Semiconductors Reach Global Markets

India designed and India made chips are beginning to enter international supply chains, signalling a broader shift from semiconductor assembly towards domestic design and manufacturing.

India, Sep 19 : India’s semiconductor ambitions are gaining momentum as locally designed and manufactured chips are now being exported to international markets, according to Electronics and IT Minister Ashwini Vaishnaw. Speaking at SEMICON India 2026, Vaishnaw said chips produced in India are already reaching countries including Japan, Germany, Switzerland and China.

The development marks an important expansion of India’s semiconductor ecosystem, which has increasingly moved beyond assembly, testing and packaging towards chip design, equipment manufacturing and fabrication.

Vaishnaw said semiconductor assembly, testing, marking and packaging facilities in India are already supporting exports to Japan, while Indian made chips are being incorporated into products shipped to other global markets. He also highlighted the emergence of domestically designed chips as part of the country’s wider effort to build an end to end semiconductor value chain.

The government is also focusing on strengthening the talent base required for the sector. According to Vaishnaw, around 70,000 design engineers have been trained, while about 400 engineering colleges have been enabled to work on chip design and tape out activities.

India is simultaneously expanding semiconductor manufacturing capacity. Tata Electronics is developing a commercial fabrication facility in Dholera, Gujarat, while other companies are building capabilities in semiconductor equipment, materials and chip design.

The minister said the country’s semiconductor programme will continue to focus on developing a complete ecosystem rather than concentrating on a single stage of production. Global economic conditions and geopolitical developments remain challenges for the industry, making supply-chain resilience and cooperation between government, companies and academic institutions important to future expansion.

The latest developments indicate that India’s role in the semiconductor sector is gradually broadening from services and electronics manufacturing towards participation across several stages of chip production.

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