India's Chip Dream Takes Flight: 10 Projects Approved, IT Revenue Hits $283B

The scale of these projects is quite remarkable, involving a planned investment of approximately Rs 1.6 lakh crore. The government stated that this includes "2 fabs and 8 packaging units" that will focus on a range of essential technologies.

According to the IT ministry's statement, "These units inter alia include CMOS (Silicon) fab, Silicon Carbide fab, advanced packaging, memory packaging, etc." While many of these facilities are currently being built, the ministry confirmed that "pilot production has started in 4 units," marking a major milestone for the domestic industry.

Beyond just building factories, the program is also nurturing local talent and innovation. To date, 24 chip design projects led by startups have received government support. The ministry noted that the progress has been steady, stating that "16 have completed tapeouts and 13 have received VC funding," showing that private investors are gaining confidence in Indian tech.

Additionally, the government has provided "350 universities" with access to specialised design tools, which are already being "used by 65 thousand engineers" to sharpen their skills for the future.

The India Semiconductor Mission (ISM) is the central agency managing these efforts. It doesn't work in isolation; instead, it relies on a mix of industry experts and government officials. The statement explained that "the representatives from various ministries/departments are also present to advise ISM," ensuring that the projects align with broader national goals.

Among the approved projects are large-scale facilities such as the Tata Electronics fab in Gujarat and a specialised packaging unit in Assam, along with international partnerships with firms such as Micron and Renesas.

While the semiconductor industry lays the foundation for the future, India's established IT sector continues to grow. New data from NASSCOM indicate that the sector's total revenue is projected to reach USD 283 billion for 2024-25.

The government is particularly focused on spreading this success beyond big cities, "actively promoting its growth, especially in smaller towns and cities," to ensure that the digital economy benefits the entire country.

- ANI