Vaishnaw’s latest Substack post outlines India’s efforts to build a domestic semiconductor ecosystem spanning chip design, fabrication, assembly, testing and packaging.
The government has approved 12 semiconductor units involving a cumulative investment of $20 billion, Vaishnaw said.
Three units - Micron, Kaynes and CG Power, have already begun commercial production, on February 28, March 31 and July 4 respectively.
As governments increasingly turn to digital platforms to explain policies directly to citizens, Union Electronics and Information Technology Minister Ashwini Vaishnaw has launched a Substack newsletter, opening another channel for his commentary on technology, industry and economic policy.
Vaishnaw’s latest post, titled How we are building India’s semiconductor ecosystem, explains the government’s efforts to develop a domestic semiconductor industry, from chip design and fabrication to assembly, testing and packaging.
The move gives the minister a direct publishing platform outside conventional government communication channels, allowing him to present policy developments and the rationale behind them in a longer-form format. The newsletter had garnered 701 subscribers at the time of publication.
What Is India's Semiconductor Plan?
In his latest post, Vaishnaw said India has approved 12 semiconductor units involving a cumulative investment of $20 billion. Three units have already begun commercial production - Micron on February 28, Kaynes on March 31 and CG Power on July 4.
The minister said the objective was not merely to establish chip fabrication plants but to build a wider ecosystem covering design, manufacturing, packaging, equipment, materials, research and skilled manpower.
The government launched the Semicon India programme in 2021 with a $10 billion package to support semiconductor fabrication and packaging units. Vaishnaw said 12 projects had since been approved despite initial concerns over India’s ability to develop clean-room infrastructure and handle sophisticated technologies.
Why Is India Betting On Semiconductors?
Semiconductors are central to modern manufacturing, with chips used in products ranging from smartphones and cars to drones, aircraft and medical equipment.
Vaishnaw described semiconductors as a “foundational industry” and linked the current push to the broader expansion of India’s electronics manufacturing sector.
According to him, India now has more than 300 electronics manufacturing units, with production exceeding $130 billion and exports crossing $48 billion. Mobile phones have emerged as the country’s largest exported item, supporting around 2.5 million jobs.
He also traced India’s semiconductor ambitions to earlier attempts dating back to the 1960s, arguing that previous efforts failed because of economic policies, weak strategy and execution.
How Govt Building The Ecosystem?
The government’s approach extends beyond manufacturing plants. Vaishnaw said more than 320 universities and startups have received access to semiconductor design tools under the Chips to Startup programme.
Under the Design Link Incentive scheme, 105 startups have received government support, with 24 securing $83 million in assistance. Of these, 15 have subsequently raised $118.5 million in venture capital funding.
Companies outside the Semicon India programme are also investing more than $3 billion in the sector, according to Vaishnaw.
What Next For India’s Chip Industry?
The government has announced Semicon 2.0, with seven focus areas including chip design, domestic production of semiconductor equipment and manufacturing of specialty chemicals and materials.
Vaishnaw said India currently uses 40-nanometre technology and aims to move towards 7-nanometre to 3-nanometre nodes within eight years. The government also plans to train 1 lakh chip design engineers.
The larger ambition, he said, is to make India a global centre for semiconductor design, much as it became a major hub for information technology.
