India plans ‘Made in India’ chips by 2025, own GPUs in 3-5 years

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India is planning to manufacture its own ‘Made in India’ chip by the end of 2025, as well as exploring the possibility of having its own graphics processing units (GPUs) in three to five years.

While manufacturing its own chips is a significant move towards accelerating India’s semiconductor ambitions, India’s GPUs will help the country boost the development of artificial intelligence (AI) infrastructure instead of solely relying on foreign suppliers.

India’s Information Technology Minister, Ashwini Vaishnaw, told CNBC that the construction of five fabrication facilities in India is nearing completion, with the first “Made in India” chips expected by the end of 2025.

Vaishnaw, at the World Economic Forum (WEF) 2025 in Davos, Switzerland, said that the government is preparing for the next phase of support for the industry under Semicon 2.0, which will focus on expanding the broader ecosystem, including chemicals and gas suppliers, and promoting chip design within India.

The Semiconductor Incentive Scheme 2.0 is expected to provide subsidies to both startups and larger companies engaged in chip design.

Vaishnaw also informed that India is exploring the development of 25 indigenous chipsets, which will be designed and fabricated locally. He also mentioned that the government is considering advancing to cutting-edge technology by gauging interest in fabricating 14nm chips in India.

“[The] world is looking at India as a destination for co-creation of technologies, for developing new applications. People do look at domestic demand, but also people look at India as a hub for global production and global growth,” Vaishnaw said at the WEF 2025.

India is deeply focused on the semiconductor industry, recognizing it as a key factor for economic growth. It offers the potential for technological self-reliance, creates substantial job opportunities, and positions the country to be a major global tech player by shifting from dependency on imports to producing its own chips. Additionally, India’s large pool of skilled engineers presents a strong advantage in semiconductor design and manufacturing.

India’s own GPU soon

India is collaborating with the industry to explore the possibility of developing its own GPU within the next three to five years, Vaishnaw told CNBC. He also mentioned that India is working on creating indigenous AI models, debating whether they should be general or focused.

The minister further shared that India is preparing datasets for training AI models, noting the availability of large pools of non-personal data, such as from transport, agriculture, and weather, would be ideal for AI training.

In March 2024, India approved roughly $1.24 billion for the IndiaAI Mission. Under this initiative, India said it will procure over 10,000 GPUs in a public-private partnership, which will address India’s computing capacity needs to develop a high-end AI ecosystem. 

Major leap in domestic manufacturing

In a major step forward for India’s semiconductor manufacturing ecosystem, a Fiscal Support Agreement (FSA) was signed in January between the India Semiconductor Mission, CG Power and Industrial Solutions Ltd., and CG Semi Pvt. Ltd. This agreement marks a key milestone in strengthening India’s semiconductor manufacturing, mainly through CG’s OSAT (Outsourced Semiconductor Assembly and Test) facility, approved under the Modified Programme for Development of Semiconductor and Display Manufacturing Ecosystem.

CG Power and Industrial Solutions Ltd. is setting up its semiconductor OSAT unit in the Indian state of Gujarat in partnership with Renesas Electronics America Inc. and Stars Microelectronics (Thailand) Public Co. Ltd.

According to Vellayan Subbiah, Chairman of CG Power and Industrial Solutions Ltd., the signing of the FSA is a significant occasion for India’s semiconductor industry because it marks a key step toward self-reliance in manufacturing and design. He noted that while Indians constitute nearly 20% of the global semiconductor design workforce, there is a pressing need for India to foster homegrown brands and intellectual property. He also emphasized the importance of driving demand and building a robust semiconductor supply chain.

The project aims to boost high-tech manufacturing and create employment opportunities, driving technological progress and economic growth in India. It will also enhance the country’s role as a reliable partner in building an efficient, resilient, and sustainable global semiconductor value chain.

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