Fact-check: Did India’s semiconductor ambitions truly die 50-60 years ago?

New Delhi: On August 15, 2025, during his 79th Independence Day address, Prime Minister Narendra Modi stated that the process to set up semiconductor factories in India began 50-60 years ago, with files dating back to that period. 

However, he claimed these efforts were "killed at birth," allowing other countries to prosper while India lagged. He added that India is now on a "mission mode," with "Made in India" chips set to be ready by the end of 2025.

Background

The semiconductor industry is a cornerstone of modern technology, powering everything from smartphones to defense systems. India’s journey in this sector has been a topic of debate, especially as the government pushes for self-reliance under initiatives like the India Semiconductor Mission (ISM). 

PM Modi’s statement suggests a historical missed opportunity, contrasting it with recent progress. Let’s break this down with available facts.

Did the process begin 50-60 years ago?

Analysis: The timeline of 50-60 years ago (1965-1975) aligns with India’s early industrialisation efforts. During this period, the government explored electronics and semiconductor development as part of its push for self-sufficiency. 

The Department of Electronics was established in 1970, and discussions about building a domestic semiconductor industry likely began around then. 

The first significant step came later with the establishment of the Semiconductor Complex Ltd (SCL) in Chandigarh, which began operations in 1983. This suggests the process may have started closer to 40-50 years ago rather than 50-60, though preliminary planning could have occurred earlier.

Verdict: True

Were these efforts ‘killed at birth’? 

Analysis: PM Modi’s phrase "killed at birth" implies that early initiatives were abandoned immediately. This is not entirely accurate. 

SCL, set up in 1983, did produce semiconductors, including integrated circuits for India’s space and defense sectors. 

However, its progress was severely hampered by a major fire in 1989, which destroyed its fabrication facility. The cause, suspected arson, remains unresolved, and production halted until 1997. 

This setback, coupled with a lack of sustained investment and technological upgrades, stalled India’s semiconductor ambitions. 

While not "killed at birth," the industry faced significant early challenges, with 65-70% of the market still reliant on imports by 2015. 

Other countries, like South Korea and Taiwan, capitalized on similar timelines with consistent policy support, outpacing India.

Verdict: Misleading.

Did other countries prosper while India lagged?

Analysis: Countries like the United States, Japan, South Korea, and Taiwan invested heavily in semiconductor manufacturing from the 1960s onward, building global dominance. For instance, Taiwan’s TSMC, founded in 1987, became a world leader due to strategic government backing. 

India, by contrast, saw limited growth, with SCL’s output remaining modest and the industry attracting only $1.636 billion in FDI between 2000 and 2016 (0.57% of total FDI inflow). The talent gap and import dependency further widened the gap, supporting Modi’s assertion of relative lag.

Verdict: True.

Is India now on mission mode with chips ready by 2025?

Analysis: The India Semiconductor Mission, launched in 2021, offers up to 50% fiscal support for semiconductor fabs and packaging units, with projects like those by SiCSem and CDIL approved. 

SCL’s recent collaboration with IIT Madras and Bombay to develop 180 nm SHAKTI processors by 2021, and its current 180 nm fabrication capabilities, signal progress. PM Modi’s claim of "Made in India" chips by late 2025 aligns with government timelines, such as the anticipated launch of indigenous chips. However, full-scale production and global competitiveness depend on overcoming infrastructure deficits and scaling up, which remain works in progress.

Verdict: Ongoing.

Full facts

Analysis: PM Modi’s statement captures a kernel of truth: India’s semiconductor journey began decades ago but faced significant hurdles, allowing global leaders to surge ahead. However, the "killed at birth" narrative oversimplifies history. 

SCL’s establishment and production in 1983, though disrupted, show an attempt was made, countering the Congress’s rebuttal (via Jairam Ramesh) that operations began then. 

Final Verdict: Mostly true with context.