India’s ambitions in the semiconductor industry are no longer just lofty aspirations—they’re materializing at a pace few anticipated. In August 2025, a flurry of developments has signaled that the country is not only serious about building a robust semiconductor ecosystem but is also taking a pragmatic approach, focusing on mature-node chip manufacturing and strengthening its domestic supply chain for critical chemicals. This dual-pronged strategy, according to Bastion Research and industry reports, positions India to fill a vital gap in the global chip supply chain while boosting its own technological self-reliance.
For decades, India’s electronics and technology sectors have depended heavily on imports, especially when it comes to the ultra-high-purity chemicals essential for manufacturing semiconductors. These chemicals, used in wafer fabrication processes like etching and cleaning, have historically come from countries such as Japan and the United States. But as the government and industry leaders ramp up efforts to localize the entire value chain, Indian chemical companies are stepping up in a big way.
According to recent reporting, Tata Chemicals is now scaling up its production of high-purity chemicals tailored specifically for the etching and cleaning stages in semiconductor fabs. Deepak Nitrite, another heavyweight in the specialty chemicals sector, is also producing the etching and cleaning chemicals that are so crucial for wafer fabrication. These efforts are not just about reducing dependency on imports—they are about ensuring the precision and reliability needed for advanced chip manufacturing right at home.
“India has historically relied on imports from countries like Japan and the United States for these specialised chemicals,” notes the industry report. But that’s changing fast. The advancements by Tata Chemicals and Deepak Nitrite are now supporting India’s broader push in semiconductor infrastructure, including the growth of Advanced Therapy Medicinal Product (ATMP) and Outsourced Semiconductor Assembly and Test (OSAT) facilities. These facilities are essential for the final stages of chip production and packaging, and a reliable local supply of chemicals strengthens the entire ecosystem.
The timing couldn’t be better. The global semiconductor supply chain has been in flux, with companies worldwide looking to diversify their sources of chips and components—a trend often referred to as the “China +1” strategy. As firms seek alternatives to China, India is increasingly being seen as a reliable and cost-effective partner. This shift is expected to help India capture a larger slice of the global semiconductor market, and the government is doing its part to accelerate the trend.
Back in 2021, the Indian government launched the Rs 76,000-crore Semicon India Programme. The aim? To attract global chipmakers, set up fabrication plants, packaging units, and build a local supply chain. The focus, at least for now, is on mature-node manufacturing—specifically, chips in the 28nm to 65nm range. These aren’t the bleeding-edge chips found in the latest smartphones, but they are the workhorses of the automotive, telecom, and industrial electronics sectors. And demand for these chips is booming.
According to Bastion Research, India’s strategy is a “smart move,” as it positions the country to fill a critical gap in the global chip supply chain. While giants like TSMC and Samsung are locked in a race for ever-smaller nodes—think 5nm and 3nm—India is carving out a niche in the mature nodes that power everything from cars to medical devices. The report even draws a parallel between India’s current trajectory and the semiconductor journeys of Taiwan and South Korea in the 1970s to 1990s, suggesting that India could follow a similar path to global relevance.
The numbers tell their own story. Earlier this month, the government approved four new semiconductor projects worth Rs 4,600 crore in the states of Odisha, Andhra Pradesh, and Punjab. With these additions, the India Semiconductor Mission (ISM) now oversees 10 projects across six states, representing a combined investment of Rs 1.6 lakh crore. Six semiconductor plants have already been approved, marking a significant milestone in the nation’s technological journey.
Prime Minister Narendra Modi, in his Independence Day address on August 15, 2025, reaffirmed the government’s commitment to the sector, stating that “made-in-India semiconductor chips will be available in the market by the end of this year.” It’s a bold promise, but with the current momentum, it doesn’t seem out of reach.
India’s role in system integration within the semiconductor value chain is also evolving rapidly. With a strong talent pool and a growing ecosystem, the country is excelling in integrating semiconductor components into advanced systems for industries such as automotive electronics, consumer devices, telecommunications, and medical technologies. The Bastion Research analysis notes that India already delivers world-class integration services and is steadily scaling up operations to meet global demand.
“The focus for now remains on mature-node fabs rather than the advanced bleeding-edge chips,” the report observes. This isn’t a sign of technological lag—on the contrary, it’s a calculated move. Mature-node chips are essential for high-volume industries and are less susceptible to the volatility and supply shocks that have plagued the global chip market in recent years.
Of course, challenges remain. Building a self-reliant semiconductor ecosystem from the ground up is no small feat. It requires not just investment and infrastructure, but also a skilled workforce, reliable utilities, and robust logistics. Yet, the progress so far is undeniable. The combined efforts of the government, domestic chemical firms, and global partners are beginning to pay off, and the sense of optimism is palpable across the industry.
Experts caution that India may not be competing with global leaders in advanced chipmaking just yet, but its focus on mature nodes and system integration is positioning it as an important player in the global supply chain. As industries worldwide clamor for high-volume, essential chips, India’s pragmatic approach could prove to be its greatest asset.
With the first made-in-India chips set to hit the market by the end of 2025, and with domestic chemical companies now providing the crucial materials needed for fabrication, the country’s semiconductor dream is fast becoming reality. The road ahead will surely have its bumps, but for now, India’s bold bet on mature-node manufacturing and supply chain self-reliance is paying dividends—and the world is taking notice.
