India marked milestone in 2025 by unveiling its first indigenously developed 32-bit microprocessor, Vikram-32. Designed by ISRO and fabricated at Semiconductor Complex Ltd (SCL) Mohali, this chip signals the country’s entry into the semiconductor innovation arena. Although built on 180nm technology, far behind the global cutting-edge 3nm chips, Vikram-32 represents the foundation of India’s ambition to design and manufacture semiconductors domestically. This development comes amid rising global geopolitical tensions where chips have become strategic assets.
Historical Background of India’s Semiconductor Industry
India’s semiconductor journey began in 1984 with the establishment of SCL Mohali, predating Taiwan Semiconductor Manufacturing Company (TSMC). Initially, SCL was close to global standards, producing DRAM chips and collaborating internationally. However, a major fire in 1989 disrupted progress, causing a decades-long setback. Post-economic liberalisation, India became a hub for chip design but failed to develop fabrication capacity due to bureaucratic hurdles. Major global players chose other Asian countries for manufacturing plants, leaving India reliant on imports.
India Semiconductor Mission and Policy Push
The launch of the India Semiconductor Mission (ISM) in 2021 marked a decisive shift. With a ₹76,000 crore budget, ISM aims to build a complete semiconductor stack – design, fabrication, assembly, and talent development. The mission offers financial incentives and infrastructure support. It has attracted global firms like Micron and domestic companies such as Tata Electronics to invest in semiconductor manufacturing. ISM also focuses on expanding the talent pool through collaborations with institutions like the Indian Institute of Science (IISc), targeting 60,000 semiconductor engineers in a decade.
Challenges of Building Ecosystem Depth
India faces a complex challenge beyond policy and capital – ecosystem depth. The global semiconductor industry is highly specialised and fragmented. Countries excel in specific segments—Netherlands in lithography machines, Taiwan in fabrication, the US in design software, and South Korea in memory technologies. These strengths are built on decades of investment, talent clustering, and coordinated innovation. India must develop a similar interconnected ecosystem rather than focusing solely on fabrication plants, which can become costly but ineffective without innovation and market competitiveness.
Lessons from Global and Domestic Innovation Models
Successful semiconductor ecosystems require sustained collaboration between academia, industry, and government. India’s biomedical innovation ecosystem offers insights on building such networks under uncertainty. Isolated breakthroughs are insufficient; a distributed and resilient ecosystem aligned with national priorities is essential. Vikram-32 is a proof of concept, but scaling requires systematic capability building, continuous investment, and nurturing talent. India’s semiconductor future depends on evolving fab labs into innovation engines rather than mere manufacturing units.
Geopolitical and Economic Significance
Semiconductors have become central to global geopolitics and economic security. India’s ability to produce chips domestically will reduce dependence on imports and enhance strategic autonomy. However, success will depend on integrating India into the global supply chain through specialised capabilities and innovation. The current geopolitical environment makes India’s semiconductor push timely but also demands a long-term vision focused on ecosystem orchestration and global competitiveness.
Questions for UPSC:
- Point out the significance of semiconductor technology in global geopolitics and how it affects national security strategies.
- Underline the challenges India faces in developing a self-reliant semiconductor ecosystem and suggest measures to overcome them.
- Critically analyse the role of government missions like the India Semiconductor Mission in encouraging technological innovation with suitable examples from other sectors.
- Estimate the impact of talent development and academic-industry collaboration on building deep tech ecosystems in emerging economies.
