In a research article titled India’s Semiconductor Mission: The Story So Far, published by Carnegie Endowment for International Peace on August 25, 2025, author Konark Bhandari (fellow with Carnegie India) examines the progress of India’s semiconductor journey since the launch of the India Semiconductor Mission (ISM) in December 2021. The study highlights how India, after decades of uneven attempts, has begun to develop a more credible semiconductor ecosystem with multiple projects approved across the value chain.
The article explains that ISM, established under the Ministry of Electronics and Information Technology, has already cleared ten projects in less than four years. These include major investments by Tata Electronics and Micron Technology, as well as assembly, testing, and packaging plants in Gujarat, Assam, and Uttar Pradesh. More recently, four new projects were approved in states such as Odisha, Andhra Pradesh, and Punjab. Together, these ventures represent India’s first serious attempt at building supply chain resilience rather than a complete domestic ecosystem.
The report draws a contrast between India and China. While China has pursued semiconductor self-reliance with heavy state funding and a more inward-looking approach, India has sought to attract global anchor firms and their supplier networks, particularly from the United States, while simultaneously encouraging domestic participation. This model mirrors India’s earlier success in attracting Apple’s assembly ecosystem and ongoing efforts with Tesla in electric vehicles.
Attention is given to the role of federal-state dynamics, where projects approved by ISM are further incentivised by individual states. Gujarat has emerged as a frontrunner, not only due to its dedicated semiconductor policy but also because of cluster development in the Dholera Special Investment Region and the catalytic effect of Micron’s 2023 investment. The article notes that despite strong incentives in states such as Uttar Pradesh and Tamil Nadu, execution and ecosystem readiness have often proved more decisive than financial offers alone.
The study also stresses the need for India to invest in intellectual property creation and next-generation innovation. While the country has a large chip design workforce, it mostly follows specifications set abroad. Future opportunities could lie in medical diagnostics, tech wearables, and neural interface technologies. These areas, combined with the Design Linked Incentive scheme, may help India move beyond manufacturing to become a creator of advanced semiconductor solutions.
In conclusion, the report argues that the India Semiconductor Mission has so far succeeded in laying the foundation for a resilient supply chain. While challenges remain in broadening the ecosystem and scaling up innovation, India’s trajectory suggests a positive outlook for its role in global semiconductor networks.