Semiconductor chips digital diamonds: PM Modi

■   Semiconductor projects in India may receive up to 70% cost support through Central and State incentives

■   Roughly US $30 billion in total incentives is being deployed to boost the sector

■   Central & State support are disbursed on a pari‑passu basis

■   ISM‑2 will further prioritize display fabs and complex devices

■   The DLI scheme will be expanded beyond startups and SMEs to include larger domestic chip design firms

metro india news  I new delhi

Prime Minister Narendra Modi asserted that it won’t be long before the smallest chip manufactured in India brings the world’s biggest changes. He called semiconductor chips “digital diamonds,” the defining force of the 21st century, much like oil shaped the last century. Addressing the Semicon India 2025 conference on September 2, 2025, he said India will claim a significant share of the global semiconductor market, projected to reach $1 trillion.

Modi stressed the government’s focus on streamlining processes: “The shorter the time from file to factory, and the lesser the paperwork, the sooner wafer work can begin.” This is at the core of the National Single-Window System, enabling centralized approvals from both the Centre and states. He confirmed that work is underway on the next phase of the India Semiconductor Mission (ISM) and stressed policies are designed with long-term commitments in mind. India has already cleared 10 semiconductor projects with a combined investment of over $18 billion (₹1.5 lakh crore), demonstrating strong global investor confidence.

Modi called for “execution with precision” and “delivery at scale,” reminding stakeholders that India has transformed from a backend provider to a full-stack semiconductor nation. He also highlighted India’s economic resilience, noting that amidst global self-interest-driven challenges, India achieved 7.8% GDP growth across sectors—manufacturing, services, agriculture, construction—and is on its way to becoming the world’s third-largest economy.