India is aiming to develop a semiconductor ecosystem featuring at least five large manufacturers, three major materials companies, advanced packaging facilities and over one lakh jobs as it works towards becoming a global hub for chip production, Union Minister Ashwini Vaishnaw said.
In an exclusive conversation with India Today, Vaishnaw said the government’s semiconductor strategy now extends well beyond establishing fabrication plants. The broader plan includes building capabilities in materials, equipment, packaging, chip design and skilled human resources.
Looking ahead, the minister said key indicators of the programme’s success would include the establishment of five major manufacturing companies, three large materials manufacturers and at least two advanced packaging facilities.
He also expects the sector to create more than one lakh direct and indirect jobs.
FROM SKEPTICISM TO EXECUTION
India’s plans to build a semiconductor industry have been discussed for several decades, but earlier initiatives failed to create a lasting manufacturing ecosystem. Vaishnaw said the semiconductor programme launched by the government in 2021 took a different approach, focusing on developing the complete supply chain over the long term.
“When we started this journey, Prime Minister Narendra Modi told us not to take things for granted,” Vaishnaw said while describing the programme’s strategy. Instead of expecting immediate outcomes, the government viewed the semiconductor mission as a 20-year undertaking, he said.
The government then studied the broader ecosystem, identifying the hundreds of chemicals and gases, equipment makers and other suppliers required to support semiconductor manufacturing.
“We worked in that process. We meticulously planned,” Vaishnaw said, explaining that officials contacted potential suppliers, helped them find partners and assisted them in understanding the Indian market.
7NM, 3NM TECHNOLOGY IN SIGHT
India currently has capabilities around the 40nm technology node, but Vaishnaw said the country is aiming to reach more advanced 7nm and 3nm technologies within the next eight years.
He acknowledged the challenges involved in developing advanced semiconductor nodes, pointing out that countries with such capabilities have spent decades creating the necessary ecosystems.
However, Vaishnaw said the progress made by India over the last four years has increased his confidence that the country can eventually move towards these advanced technologies.
At the same time, the minister emphasised that semiconductor manufacturing is highly complex and demands exceptional levels of precision and quality.
FOCUS ON THE ENTIRE ECOSYSTEM
Vaishnaw said the government has intentionally taken an approach that goes beyond chip fabrication. “The semiconductor ecosystem requires a wide range of inputs, including specialised chemicals, gases, equipment and materials. It also requires chip design capabilities, advanced packaging and a large pool of trained engineers,” he said.
According to Vaishnaw, approximately 85,000 semiconductor engineers have already been trained in India.
He added that the government is collaborating with universities across the country to expand semiconductor-related education and provide students with practical industry exposure. The minister said the interest shown by students, including those from smaller cities and universities, has been one of the encouraging developments of the programme.
STARTUPS AND DEEP TECH
Vaishnaw also highlighted the expansion of India’s semiconductor startup ecosystem.
He said the government had initially anticipated limited venture capital interest in semiconductor and deep-tech startups because these businesses require significant funding, specialised expertise and long-term investment. However, the programme has attracted around 30 venture capital firms and 205 startups, according to the minister.
The India Deep Tech Alliance has also grown its network, with more companies showing interest in joining the initiative. Vaishnaw said the expanding startup ecosystem is significant because semiconductor development cannot depend solely on large manufacturing plants.
JOBS AND ELECTRONICS MANUFACTURING
India’s semiconductor ambitions are also closely connected to its broader plans to expand electronics manufacturing.
The country’s electronics manufacturing industry has expanded rapidly, with mobile phones becoming an important export category. Vaishnaw said semiconductors could serve as the base for further growth because chips are essential to automobiles, consumer electronics, smartphones, trains, aircraft and numerous other industries.
He said the semiconductor ecosystem could generate more than one lakh direct and indirect jobs.
The government is also anticipating a multiplier effect, with semiconductor plants generating additional demand for suppliers, materials manufacturers, equipment producers and other ecosystem participants.
WHAT WOULD SUCCESS LOOK LIKE?
According to Vaishnaw, the semiconductor mission will ultimately be measured by whether India succeeds in establishing a complete and commercially sustainable ecosystem.
His target is straightforward: five major semiconductor manufacturers, three large materials companies, two advanced packaging facilities and more than one lakh jobs.
The minister said the immediate priority is to ensure that the foundation created over the past four years develops into lasting industrial capacity.
For an industry where India has experienced several unsuccessful attempts in the past, the next stage will focus on moving beyond ecosystem creation and demonstrating that the sector can operate successfully at scale.
