India’s ‘Lagaan Moment’: The Country’s Bold Leap into Chipmaking
- India’s first pilot semiconductor plants are operational, with Micron and Tata leading large-scale projects.
- The government is offering unprecedented subsidies covering up to 75% of fab costs.
- Focus is on mature nodes (28–110nm) to secure early wins before moving to advanced chips.
- Ecosystem building, startups, and domestic IP creation are central to India’s long-term chip strategy.
- This is seen as India’s “Lagaan moment”, a bold but necessary leap into a foundational industry.
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Key Takeaways
- India’s first pilot semiconductor plants are operational, with Micron and Tata leading large-scale projects.
- The government is offering unprecedented subsidies covering up to 75% of fab costs.
- Focus is on mature nodes (28–110nm) to secure early wins before moving to advanced chips.
- Ecosystem building, startups, and domestic IP creation are central to India’s long-term chip strategy.
- This is seen as India’s “Lagaan moment”, a bold but necessary leap into a foundational industry.
In the annals of India’s technology journey, “Lagaan moment” now fits the country’s semiconductor push. Like the cinematic underdog taking the pitch, India is stepping into the high‑stakes arena of chipmaking, an industry long dominated by Taiwan, South Korea, Japan, and the United States.
The turn has moved from policy to ground. A pilot facility by CG Power in Sanand, Gujarat, has been inaugurated; construction of Micron’s large‑scale facility is far advanced and slated for commissioning before the end of the calendar year.
Tata Electronics is progressing too, and the first India‑made chips have already rolled out. After decades of delay, India is finally in the game.
Why chips, why now
Semiconductors are the invisible engines of modern life from smartphones and cars to industrial and defence systems. For India, entering this industry is about strategic resilience, not prestige. Earlier efforts, such as the Semiconductor Laboratory (SCL) in Mohali, served national missions but did not scale commercially.
Today’s course correction comes via a Rs 76,000‑crore mission, arguably the most generous industrial policy programme in India’s history. What distinguishes the current approach is the structure of support. The central government funds 50% of fab build‑out costs, with states adding roughly half of that again.
Unlike traditional post‑completion disbursals, subsidies are released alongside project progress, lowering risk for both global and domestic players and keeping momentum high.
Smart bets on mature nodes
Some critics liken India’s initial chips to “SUVs” while rivals build “Formula One engines.” Policymakers counter that the focus on mature nodes, 28–110nm, is intentional. These technologies are established, capital requirements are manageable, and they power sectors where demand is deep and immediate: auto electronics, home appliances, and industrial controls.
The objective is to build a reliable base first, then graduate to more advanced nodes that require dramatically higher subsidies (for context, Japan and the United States are deploying tens of billions of dollars for bleeding‑edge fabs).
From clusters to capability
A central lesson from Taiwan’s Hsinchu is that semiconductors thrive in clusters dense ecosystems of fabs, research labs, universities, suppliers, and support services. India is following suit around Sanand and Dholera, while reinforcing design hubs in Bengaluru, Hyderabad, Pune, Noida, and Chennai.
Fabs are highly automated and won’t yield massive employment, but the real jobs flywheel lies in design. India already hosts about a fifth of the world’s semiconductor design workforce; the next leap is to anchor more of the intellectual property at home.
Startups and homegrown IP
To push domestic innovation, MeitY’s Design Linked Incentive (DLI) and the Chips‑to‑Startup programme have broadened access to expensive EDA tools across more than 270 institutions. Startup activity is rising, including on open RISC‑V architectures supported by IIT Madras and C‑DAC Thiruvananthapuram.
Grants up to Rs 50 crore help companies move from prototypes to early markets. Officials also acknowledge lessons from the first phase of DLI and are reworking it to draw more applicants and scale domestic design, so that IP created by Indian engineers increasingly remains in India.
The consensus and the cadence
The semiconductor mission also reflects an unusual alignment: political backing across parties, empowered civil servants, and a bias for execution. Policy announcements have translated quickly into groundbreaking ceremonies, construction, and pilot outputs.
Equally important is the generational impulse: officials repeatedly credit India’s youth, their speed of learning and audacity to dream big, with pushing the mission forward.
Beyond fabs: design, data, and AI
The broader digital push covers three areas: compute power, model building, and data. Voucher‑style incentives are helping companies add AI compute without unfair competition. India is also funding its own language models to reflect cultural and linguistic diversity. The AI Kosh platform collects machine‑readable datasets. Together, these steps aim to move India from a technology taker to a technology creator.
Closing over
India’s chip drive is still in its opening overs. Full‑scale production will take time, and catching up with incumbents will demand patient capital and policy stamina. Yet the intent and institutions are in place. Calling this India’s “Lagaan moment” captures the odds and the optimism: an underdog stepping onto the field with a plan, a team, and a long game. The next decade will reveal whether this bold leap turns India into a durable contender in the world’s most critical industry.
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