India set to unveil new semiconductor projects as first ‘Made in India’ chips near launch

With the first chips poised to roll out and Semicon 2.0 on the anvil, India is now racing to join the league of global chipmakers.

India is preparing to clear two to three additional semiconductor projects using leftover funds from its Rs 76,000 crore Semicon 1.0 program, even as discussions intensify with the Finance Ministry over a new framework for Semicon 2.0.

S Krishnan, Secretary at the Ministry of Electronics and Information Technology (MeitY), confirmed that nearly all the funds under the first phase of the semiconductor mission have already been committed.

“I would say that funds are almost fully committed under the Semicon One scheme. We might be able to just accommodate two or three small projects. So with that, that program would be at end. Our Semicon 2 scheme is now being structured, and we are in discussions with the Finance Ministry and other ministries in the Government of India to take that forward,” Krishnan told ANI.

#WATCH | Delhi: Secretary of the Ministry of Electronics & Information Technology (MeitY), S Krishnan says, "...I would say that funds are almost fully committed under the Semicon One scheme. So, based on that, our Semicon 2 scheme is being structured around, and we are in… pic.twitter.com/xHKLvxlkfi

— ANI (@ANI) August 22, 2025

Under the original program, Rs 65,000 crore was earmarked for fabs, Rs 10,000 crore for the Semiconductor Laboratory in Mohali, and Rs 1,000 crore for the Design-Linked Incentive (DLI) scheme.

Krishnan said around Rs 63,000 crore has already been committed for fabs alone, leaving very limited fiscal space. Ten projects have been cleared so far and are at various stages of implementation.

“By before the end of this year, we should be seeing the first commercially India-made chips, which will come out of some of the facilities that are being built currently. Truly, India has established its footprint in this area very clearly,” he added.

#WATCH | Delhi: Secretary of the Ministry of Electronics & Information Technology (MeitY), S Krishnan says, "...10 projects have been cleared and are at various stages of implementation. By before the end of this year, we should be seeing the first India commercially India-made… https://t.co/7IM2N5FFwLpic.twitter.com/2Mr2oDCV0X — ANI (@ANI) August 22, 2025

India’s early progress in semiconductors has been driven largely by startups and academia working on chip design.

“Startups in the semiconductor space are mostly in the design space. We have a design-linked incentive scheme for startups, which has been quite successful. There are about 23 startups that have been approved under that scheme,” Krishnan said.

#WATCH | Delhi: Secretary of the Ministry of Electronics & Information Technology (MeitY), S Krishnan says, "Startups in the semiconductor space are mostly in the design space. We have a design-linked incentive scheme for startups, which has been quite successful. There are about… pic.twitter.com/GCqulb4OGq

— ANI (@ANI) August 22, 2025

He pointed to MeitY’s Chips to Startups program, which provides access to advanced EDA and design tools: “Currently, about 280 academic institutions are using those tools, and 72 startups are also using those tools. Now we are in the process of trying to see how the design-linked incentive scheme can be revamped in order to make it more attractive, to enable a broader cross-section of companies to actually take advantage of it and also to ensure that more risk capital is available.”

The backdrop to these announcements is the upcoming SEMICON India 2025, to be inaugurated by Prime Minister Narendra Modi on September 2 at Yashobhoomi, Delhi. The event has nearly doubled in scale compared to last year.

“This time around we are expecting delegates from 33 countries, about 50 plus CXOs who will attend. There are expected to be about 350 exhibitors, last year, the number was less than 200. So in that sense, it’s almost a doubling of the number of exhibitors,” Krishnan said.

#WATCH | Delhi: On SEMICON India 2025, Secretary of the Ministry of Electronics & Information Technology (MeitY), S Krishnan says, "...This time around we are expecting that there would be delegates from 33 countries, about 50 plus CXOs who will attend. There are expected to be… pic.twitter.com/F6LeNf38s7 — ANI (@ANI) August 22, 2025

He also noted: “Last year we did not have any country pavilions. This year, we are going to have four country pavilions. This year, there are going to be six specific country round tables. This year, we have nine states participating in the event. This reflects the growing confidence in India as a destination for manufacturing in the semiconductor space.”

On concerns over potential disruptions due to tariffs or geopolitical supply chain pressures, Krishnan remained upbeat.

“So far what we have seen is that in India’s case, we are still in a zero tariff regime as far as electronics are concerned. What all the companies have assured us is that given the investments they’ve already made, they do not expect too much of a disruption,” he said.

#WATCH | Delhi: Secretary of the Ministry of Electronics & Information Technology (MeitY), S Krishnan says, "...So far what we have seen is that in India's case, we are still in a zero tariff regime as far as electronics are concerned. That is the present situation. We will wait… pic.twitter.com/ZOKFvH3J32

— ANI (@ANI) August 22, 2025

“The technology doesn’t come from only one country. We look at a diversified set of countries from which we can draw technology. There will be some minor blips here and there, but I don’t think it seriously threatens the forward movement of the India Semiconductor Mission or the other programs, the PLI programs for electronics manufacture or the new electronic component manufacture scheme.”