India’s First Indigenous Semiconductor Chip to Begin Production by 2025; Stocks Involved

India is set to achieve a significant milestone in its technological advancements, with the country’s first indigenously designed semiconductor chip slated to begin production by 2025.

Union Minister of Electronics and Information Technology, Mr Ashwini Vaishnaw, made this announcement at the Global Investors Summit 2025 in Bhopal, Madhya Pradesh.

Madhya Pradesh’s Role in Electronics Manufacturing

Under Prime Minister Mr. Narendra Modi’s leadership, Madhya Pradesh has emerged as a key hub for electronic manufacturing. The state has two approved electronic manufacturing clusters in Bhopal and Jabalpur, supporting 85 companies engaged in electronics production. The government’s focus on skilling initiatives is also evident in the Future Skills Programme, which aims to train 20,000 engineers in Madhya Pradesh alone.

India’s electronics sector has witnessed remarkable growth over the past decade, reaching a valuation of ₹10 lakh crore (US$ 114.43 billion). The country has also achieved ₹2.5 lakh crore (US$ 28.61 billion) in exports, with mobile phones contributing ₹4 lakh crore (US$ 45.77 billion), laptops and telecom equipment adding ₹75,000 crore (US$ 8.58 billion), and defense and medical electronics strengthening India’s global presence.

Government Push for Semiconductor Manufacturing

To further boost semiconductor production, 5 new manufacturing units are under construction. Additionally, a national initiative is in place to train 85,000 engineers in advanced semiconductor and electronics manufacturing, ensuring a robust talent pool for the industry. The government’s vision for Viksit Bharat 2047 focuses on 4 core areas: infrastructure investment, inclusive growth, manufacturing expansion, and legal simplification.

Semiconductor Stocks in India

Meanwhile, a few semiconductor stocks in India you can keep an eye on are,

Note: The stocks listed here are as of February 28, 2025. Apart from these, there can be several other companies involved in the semiconductor industry.

Conclusion

The initiative is a crucial step toward India’s self-reliance in semiconductor manufacturing, which is essential for the country’s growing electronics and technology sectors.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

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