India’s Semiconductor and Electronics Manufacturing Boom
Context
Recently, Union Minister Shri Ashwini Vaishnaw announced that India’s first indigenous semiconductor chip will be ready for production by 2025 at the Global Investors Summit 2025 in Bhopal.
- The event highlighted Madhya Pradesh’s emergence as an electronics manufacturing hub, with major investments in IT infrastructure, workforce training, and semiconductor production.
Relevance:
GS-02 (Government policies and interventions)
Key Highlights
- The first ‘Made in India’ semiconductor chip will be production-ready by 2025, marking a milestone in India’s electronics self-sufficiency.
- The government has launched a training program to upskill 85,000 engineers in semiconductor and electronics manufacturing.
- Madhya Pradesh’s Electronics Manufacturing Growth
- The state has two approved electronics manufacturing clusters in Bhopal and Jabalpur.
- 85 companies are already operating in the sector, indicating a rapid expansion.
- The state will train 20,000 engineers under the Future Skills Program to meet industry demands.
- India’s electronics sector valuation has reached ₹10 lakh crore, with exports worth ₹5 lakh crore, including:
- ₹4 lakh crore in mobile exports
- ₹75,000 crore in laptops, servers, and telecom equipment
- Significant exports in defense & medical electronics
- Future-Ready Infrastructure & Viksit Bharat 2047
- The government is focusing on infrastructure investment, inclusive growth, manufacturing expansion, and regulatory simplification.
- The Indian Railways and Madhya Pradesh government have signed agreements on renewable energy projects to promote sustainable growth.
What are semiconductor chips?
- Semiconductors are materials that have both the properties of conductors and insulators. They are usually found in electronic products such as computers, smart phones, etc.
- They can be pure elements like silicon or compounds like gallium arsenide and form the basic building blocks of modern electronics and information technology products.
- They also play an essential component in the automobile industry, household gadgets, and medical devices.