India manufactures electronics 15–30 per cent cheaper than several competitors, giving it a strong edge in global markets, Ashwini Vaishnaw, Minister of IT and Electronics, Government of India, stated at the Semicon India 2025 conference.

“India holds a significant cost advantage across electronics manufacturing, ranging from mobile phones and laptops to semiconductors. As fabrication units progress from pilot lines to full-scale production, global validation and customer confidence will naturally follow, further solidifying India’s role in the global supply chain,” Vaishnaw stated.

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Exports at the Core of Semiconductor Strategy

Underlining India’s rapid semiconductor progress, Vaishnaw stressed that exports will be a critical focus. Of the ten sanctioned projects, production is being planned not just for domestic needs but also for international markets. He also highlighted the expanded scope of Indian Semiconductor Mission 2.0 (ISM 2.0), which will go beyond fabs to include equipment makers, material suppliers, and other key ecosystem players.

“In ISM 2.0, we are also enabling companies to design and develop complete chipsets in India, with homegrown intellectual property and India-incorporated firms. This builds on the foundation laid under ISM 1.0,” Vaishnaw explained.

India Eyes AI Chips & Processors

Alongside fabs and packaging units, India is also setting its sights on developing its own AI chips and GPUs. Vaishnaw confirmed that processor development is a top priority, with leading institutes like IIT Madras and C-DAC already spearheading major initiatives in this area.

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India’s Strategy Amid Global Incentive Race

With multiple nations offering hefty subsidies to attract semiconductor players, questions arise about India’s competitiveness. Addressing this, S. Krishnan, Secretary at the Ministry of Electronics & IT, explained that India is carefully targeting semiconductor nodes that align with its economic structure.

“There is no direct conflict. Semiconductors have always been supported by governments worldwide, and India is no exception. Our approach is deliberate, and its impact is already visible in the growing number of companies and projects taking shape here,” Krishnan said.