Prime Minister Narendra Modi has announced significant news that India is poised to enter the next crucial phase of its ambitious India Semiconductor Mission, alongside a major revamp of the Design Linked Incentive (DLI) scheme. Speaking at the top national event, Semicon India 2025, Modi underscored the nation’s commitment to becoming a global powerhouse in chip design and manufacturing, signaling a strategic acceleration of its technological self-reliance goals. The announcement places India’s burgeoning semiconductor sector firmly in the spotlight, reflecting growing global confidence and the nation’s increasing role in the global semiconductor ecosystem.
The Semicon India 2025 conference, held in New Delhi, served as the platform for Prime Minister Modi’s forward-looking address. He described semiconductors as the “digital diamonds” of the 21st century, emphasizing their pivotal role in driving global progress, much like oil did in the previous century. Modi projected that India would soon capture a significant share of the global semiconductor market, which is projected to reach a staggering one trillion dollars. The event, which saw over 20,000 attendees from more than 48 countries, underscored India’s trending importance in this strategic industry. The Prime Minister articulated a clear vision: “The day is not far when the world will say: Designed in India, Made in India, Trusted by the World.”
Advancing the India Semiconductor Mission
The core of Modi’s announcement revolved around the imminent “next phase” of the India Semiconductor Mission (ISM). Launched in December 2021 with a substantial outlay of ₹76,000 crore, the ISM aims to transform India into a comprehensive semiconductor manufacturing hub, reducing its reliance on imports. Currently, ten major semiconductor projects, collectively worth over USD 18 billion (₹1.6 lakh crore), are progressing towards fruition. These projects signify a major step towards realizing India’s aspiration to be a full-stack semiconductor nation, moving beyond traditional backend operations to encompass the entire value chain. Commercial chip production is anticipated to commence within the current year, a development that has generated significant interest.
Boosting Chip Design with a Revamped DLI Scheme
A key component of the government’s strategy is the strengthening of its chip design capabilities. The Design Linked Incentive (DLI) scheme, designed to foster indigenous innovation and offset developmental disadvantages for domestic chip designers, is set to undergo a significant revamp. This initiative aims to attract investments, support startups and MSMEs, and encourage the development of complex System-on-Chip (SoC) solutions. With 23 chip design projects already sanctioned, the revamped DLI scheme is expected to further catalyze innovation, providing enhanced financial incentives and design infrastructure support to a growing number of companies and academic institutions. The government is also focusing on developing Indian intellectual property in this critical sector, urging companies to secure top global chip patents.
“Digital Diamonds” and Global Market Dynamics
The strategic importance of semiconductors in the modern era was a recurring theme. Modi drew a powerful analogy, stating, “Oil was black gold, but chips are digital diamonds.” This highlights how these small components are the bedrock of 21st-century technology, powering everything from artificial intelligence and telecommunications to advanced defence systems and everyday electronics. As the global semiconductor market surges, expected to surpass USD 1 trillion, India’s proactive policy interventions and investments position it to capture a substantial portion of this expanding market, a prospect that is hyped among industry watchers.
Building Blocks: Critical Minerals and Infrastructure
Looking ahead, India is also laying the groundwork by focusing on essential resources and streamlined processes. Prime Minister Modi announced plans for a Critical Minerals Mission, aimed at securing the supply of rare earth elements and other vital materials required for advanced manufacturing, including semiconductors. To expedite the process of setting up manufacturing facilities, the government is implementing a National Single Window System to fast-track approvals and reduce paperwork. Furthermore, the development of “plug-and-play” semiconductor parks is underway, designed to provide ready-to-use infrastructure for investors, further enhancing the ease of doing business in the sector.
Talent and Innovation: Student Triumphs
Underscoring the depth of India’s burgeoning talent pool, the Prime Minister highlighted the remarkable achievements of top student teams. Seventeen student teams have successfully designed and taped out their own chips, presenting tangible proof of India’s growing prowess in chip design. These student-led innovations, often emerging from premier technical institutions, signal a bright future for indigenous technological development and a skilled workforce ready to meet the demands of the semiconductor industry.
Global Confidence and Economic Resilience
Modi also pointed to India’s robust economic performance as a testament to its growing global standing. He noted that India achieved a GDP growth rate of 7.8% in the first quarter of FY2025-26, outperforming global expectations amidst widespread economic challenges. This resilience, he added, reflects a new energy and enthusiasm, propelling India toward becoming the world’s third-largest economy. The widespread global participation and investment interest evident at Semicon India 2025 further validate the Prime Minister’s assertion that “The world trusts India, the world believes in India, and the world is ready to build the semiconductor future with India.”
The announcements made at Semicon India 2025 mark a significant inflection point in India’s journey towards semiconductor self-reliance and global leadership. With a clear vision, strategic policy initiatives, substantial investments, and a growing pool of talent, India is solidifying its position as a key player in the global semiconductor landscape. The focus on enhancing manufacturing capabilities, boosting chip design innovation through the revamped DLI scheme, and securing critical resources positions the nation for sustained growth and technological sovereignty in the 21st century.
