Semiconductors in India

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Early history

Information generated by Perplexity

Introduction

India’s semiconductor manufacturing history began with state-led ventures in the late 1970s and 1980s, but faced chronic setbacks, while research and design strengths emerged later; the main early manufacturer was the government-owned Semiconductor Complex Limited (SCL), with fluctuating production volumes and limited market impact, though recent years show renewed ambition and investment for semiconductor self-reliance.circuitdigest+3

Early Semiconductor Manufacturing in India

• The Indian government initiated the drive for domestic semiconductor capability in the late 1970s, leading to the establishment of Semiconductor Complex Limited (SCL) in 1984 in Mohali, Punjab, fully state-owned and under the Department of Electronics.techovedas+2

• Government investment was substantial for the era ($40–70 million USD) and SCL was expected to lay the foundation for an indigenous electronics industry.meet-global.bnext

• SCL initially targeted 5-micron process technology and later upgraded to 0.8-micron, but always lagged behind global leaders.circuitdigest

• In 1989, a major fire devastated SCL’s production facility, severely inhibiting progress for years.circuitdigest

• Early manufacturing quantities and product types were limited and focused on supporting strategic or government needs, such as defense and space projects—example: SCL’s chips were later used in missions like India’s Mars Orbiter.wikipedia

• Despite ambitions, SCL’s commercial market impact in the 1980s and 1990s was extremely limited; much of the domestic demand continued to be met by imports.wikipedia+1

Predecessor and Early Companies in the 1970s

• In the 1970s, there was consideration for collaborations with international companies (like Fairchild Semiconductor), but bureaucratic delays and policies caused these opportunities to fall through, so no major private manufacturer emerged before SCL.meet-global.bnext+1

• No evidence of a major private-sector Indian semiconductor company before SCL has been found; state initiatives dominated.techovedas+1

Research and Development in India

• SCL became both a manufacturing and R&D base for India.techovedas

• In the 1990s, as manufacturing progress stalled, Indian talent reoriented toward design (VLSI, embedded systems), supported by companies like Wipro, TCS, and Infosys, and institutes including IITs and IISc.visionias+1

• Recent years witnessed expanded design R&D: academic collaborations (IIT Madras, IISc, IIT Bombay), and the creation of the Bharat Semiconductor Research Centre (BSRC) in 2024 at IIT Madras.visionias+1

• Modern programs like “Chips to Startup” and the Design-Linked Incentive (DLI) Scheme aim to support R&D and train engineers for the sector, with tens of thousands benefiting.visionias

Market and Fate of Early Manufacturing Efforts

• SCL’s early production rarely met global benchmarks—output was small, costs were high, and private industry uptake was poor.circuitdigest

• Most early chip output was used for government and strategic applications—SCL had negligible commercial export or domestic consumer industry penetration.wikipedia+1

• The 1989 fire, lack of strategic policy, underfunding, and inconsistent vision meant early semiconductor efforts struggled to be competitive and primarily served a limited market.techovedas+1

Recent Developments and Quantities

• Post-2021, the Indian Semiconductor Mission (ISM) has approved at least ten major projects, including significant government investment (over INR 629 billion, or $7 billion+), with the first domestic chips scheduled for market release by late 2025.carnegieendowment+1

• Government and public-private partnerships are now focusing on high-volume production, with special emphasis on sectors like automotive and defense; the scale of annual manufacturing will dramatically increase starting 2025.india-briefing+1

Summary Table: Key Milestones in Indian Semiconductor History

  

Year	Event/Institution	Owner	Notes & Output	Fate/Market
1970s	Fairchild/Texas Instruments*	(None, lost deal)	No factory built	Chose Malaysia instead
1984	Semiconductor Complex Ltd.	Govt. of India (100%)	Small batches, mainly govt use	Fire in 1989; limited reach
1990s	IT Majors: Wipro, TCS, Infosys	Private	Focus VLSI design, not mfg	Global design contribution
2021+	Indian Semiconductor Mission	Govt.-private	Major new facilities under works	First mass chips 2025