Indian-designed first telecom system equipped with indigenous chips receives Technical Conformity Assessment (TCA) approval.

India's Semiconductor Industry Takes a Leap Forward

The Indian semiconductor industry has made a significant stride forward, as Union Electronics and IT Minister Ashwini Vaishnaw announced that a telecom system using only domestically-produced chips has received certification from the Telecommunication Engineering Centre (TEC). This milestone marks progress in reducing reliance on imported semiconductors and indicates a promising future for the industry.

The TEC certification is the Department of Telecommunications' quality benchmark, ensuring that telecom equipment meets strict performance and safety standards. The approved telecom system has cleared standards and quality tests, demonstrating the quality of Indian-made chips.

The India Semiconductor Mission (ISM), launched in 2021 with a Production Linked Incentive (PLI) scheme worth Rs 76,000 crore, aims to enhance domestic manufacturing and design capabilities in the semiconductor sector. Approved projects under the ISM scheme total 1.60 lakh crore, including Tata Electronics' 91,000 crore fab in Dholera, Micron's 22,516 crore packaging facility in Sanand, and CG Power's new OSAT pilot line.

Companies working on chip production in India in collaboration with the ISM include Intel and BrainChip Systems India Pvt Ltd, which has an engineering presence in Hyderabad focused on AI and semiconductor design. ASML Holding NV, a global leader in semiconductor lithography, has also announced its intention to strengthen its partnership with Indian businesses in the upcoming year.

The strategy of enhancing capacity in design, assembly, testing, and integration allows India to address supply chain gaps. Analysts say this approach will be crucial in addressing the global semiconductor shortage. The India's semiconductor market stood at $38 billion in 2023 and is expected to hit $45 to $50 billion in 2024-25 and $100 to $110 billion by 2030.

The approval has positioned India's local chips alongside global counterparts, opening export opportunities. However, the industry may face challenges as the US has announced 'not that high, but fairly substantial' tariffs on chips coming 'shortly'. Despite this, India's semiconductor market is projected to witness significant growth in the coming years.

Minister Vaishnaw described this development as a "big leap" for India's semiconductor industry. With the continued support of the ISM and partnerships with global leaders like ASML Holding NV, India is poised to become a major player in the global semiconductor market.