India’s Silicon Breakthrough: Atmanirbhar Bharat Powers Ahead
By Sanjeev Oak
India has crossed a historic milestone with the launch of its first Made-in-India semiconductor chip from Gujarat. This breakthrough underlines the power of Atmanirbhar Bharat, propelling India into the global tech league and reducing dependence on foreign supply chains.
The announcement that India’s first Made-in-India semiconductor chip will roll out from the CG Power facility in Gujarat is not just an industrial milestone—it is a statement of intent. For decades, India’s tech prowess was measured by its software exports, not its hardware capabilities. That is now changing.
This achievement must be seen as the fruit of Prime Minister Narendra Modi’s Atmanirbhar Bharat (Self-Reliant India) vision, which aims to shift India from being a passive participant in global supply chains to becoming a decisive producer of critical technologies.
“From software to semiconductors, India is moving from the back office of the world to the factory floor of the future.”
The Global Context
The semiconductor industry lies at the heart of today’s economic and strategic rivalries. Chips power everything—from smartphones and laptops to fighter jets, satellites, and AI systems. Currently, Taiwan controls over 60% of global semiconductor manufacturing, while China has invested upwards of $150 billion since 2015 to dominate this sector.
India, on the other hand, was late to the race. Despite having a strong base in electronics design and IT services, it lacked a semiconductor fabrication ecosystem. This dependence left India vulnerable, particularly during the COVID-19 supply chain crunch.
Modi’s Push for Chip Sovereignty
The Gujarat rollout marks the success of a broader $10 billion incentive program launched by the Modi government to attract semiconductor manufacturing. The scheme, backed by a combination of Production-Linked Incentives (PLI) and infrastructure support, has drawn companies like Micron, Foxconn, and now CG Power to set up plants in India.
The Gandhinagar chip facility is being developed with international technology partners, but its fabrication and testing will be on Indian soil. This means not only job creation but also the building of end-to-end capability—from design to final product.
“Semiconductors are the new oil; with Gujarat’s chip plant, India has struck its first energy field of the digital age.”
The Economic Multiplier
A robust chip industry is not just about electronics—it is about national competitiveness. According to Deloitte, the global semiconductor market will touch $1 trillion by 2030. If India captures even 10% of this market, it could generate $100 billion annually in exports, rivaling its IT services sector.
The Gujarat facility alone is expected to create 20,000 direct jobs and 1 lakh indirect jobs, while also boosting ancillary industries such as chemicals, testing, and logistics. This is exactly how Taiwan and South Korea built their tech empires—by fostering clusters around anchor facilities.
Strategic Security Dimensions
For India, semiconductors are not just an economic bet but also a national security imperative. Today, India spends billions importing chips that go into its defense, space, and telecom systems. By building domestic capacity, India reduces its dependence on fragile supply chains often influenced by US-China geopolitical tensions.
The government has been clear that Atmanirbhar Bharat is not isolationism. It is about reducing vulnerabilities while engaging with the world on India’s own terms.
“Atmanirbhar Bharat does not mean closing doors—it means India walks into the global market with its own toolkit.”
From “Back Office” to “Chip Maker”
India’s IT story in the 1990s made it the back office of the world. The next chapter must make it the workshop of the world’s digital future. Semiconductors, along with clean energy, defense manufacturing, and telecom, will define whether India remains a service-led economy or transforms into a technology powerhouse.
Already, companies like Tata Electronics are entering the chip packaging and testing business. With Gujarat setting the precedent, more states—Maharashtra, Tamil Nadu, Karnataka—are vying to host semiconductor hubs. This competitive federalism aligns well with India’s economic ambitions.
Modi’s Vision Comes Full Circle
When Prime Minister Modi launched Atmanirbhar Bharat in 2020, critics dismissed it as protectionism in disguise. Today, the rollout of India’s first semiconductor chip proves otherwise. It shows a strategic blend of global partnerships and domestic capacity-building.
More importantly, it signals confidence. For years, India’s Achilles heel in industrial policy was execution. Announcements were plenty, outcomes scarce. The Gujarat chip proves that intent has finally matched implementation.
“A Made-in-India chip is not just about technology—it is about the confidence of a nation shaping its own destiny.”
The Road Ahead
India still faces challenges—semiconductors are capital-intensive, require massive water and power supplies, and global competition is fierce. Yet, the first step is always the hardest.
If India continues with the same policy consistency, skilled manpower investment, and global collaboration, then by 2030 it could well be not just a digital services hub but also a semiconductor hub for the world.
Final word
The rollout of the first Made-in-India chip is a watershed moment in Atmanirbhar Bharat. It underscores how India can convert geopolitical uncertainty into economic opportunity, and how Modi’s policy gamble on self-reliance is paying off.
This chip is more than silicon—it is symbolic of India’s leap from dependence to dominance in the technology frontier.