India is preparing to make significant advancements in the semiconductor sector. Union Minister for Electronics and IT, Ashwini Vaishnaw, recently stated that India will have its first “Made in India” semiconductor chip by the end of 2025. In an exclusive interview with Money Control, the minister stated that the project is on track in regards to meeting deadlines and all five critical production units are simultaneously under construction.

A Game-Changer for India’s Tech Ecosystem

The chip will be developed as a part of the Semicon India Program, a self-sustained semiconductor initiative aimed towards fostering an indigenous semiconductor ecosystem. The project is a collaboration between Tata Electronics and PSMC (Powerchip Semiconductor Manufacturing Corporation) from Taiwan, with a manufacturing site in Dholera, Gujarat.

This project, which submitted its proposal for approval in December 2021, has a colossal budget of ₹76,000 crore. The Dholera semiconductor fabrication plant, also called “fab,” is expected to be a major contributor toward curtailing India’s reliance on international chip suppliers and dominating the global semiconductor market.

Dholera: India’s Emerging Silicon Valley

Foreign investments are pouring in to develop India’s very first semiconductor fabrication unit at Dholera. A leading Smart City in the country, Dholera region has the necessary infrastructure, location, and government support to turn it into the semiconductor hub of India.

The Minister also disclosed that the indigenous chip is most likely to be launched in September- October of 2025, which will be a landmark day for the technology sector in India.

Dholera: India’s Initial Steps into Artificial Intelligence

In addition to the semiconductor revolution, the minister mentioned the presence of Indian talent in the realm of artificial intelligence. He assured that India is not sulking behind on the AI dossier and is making effort to develop methods to face competition from world leaders.

This is also looked upon as one of the steps taken towards achieving this goal which is the construction of a local Large Language Model. This is a generative artificial intelligence model designed to cater to India’s multilingual and multi-cultural populace. This AI is expected to be available in 10 months time, marking a significant leap towards strengthening India’s foothold in the global AI market.

The new era for Digital India

The twin announcements of India’s first semiconductor chip, along with the forthcoming homegrown AI model, marks the beginning of a new digital epoch. By reinforcing her efforts toward creation of hardware and AI, India is preparing itself to achieve the status of a global technology superpower, as well as fostering innovation, creating millions of jobs, and improving strategic defense capabilities of the nation.

As the Dholera fab prepares itself for the commencement of production and the pace of AI development increases, Global powers are witnessing the evolution of India’s technology revolution in real-time.