With the launch of ISRO’s Vikram 32-bit processor this week at the Semicon India 2025 event, India now has its first indigenous space-grade computer chip for rockets.

Designed to withstand the extreme conditions of space launches, Indian Prime Minister Narendra Modi touted Vikram as the ‘digital diamond’. However, it must be noted that Vikram is designed for niche operations in satellites and rockets, and is not the kind of chip that powers smartphones or laptops.

There were other big announcements too at Semicon India 2025, and more than a dozen MoUs were signed as international companies partnered with Indian enterprises for the semiconductor push that India needs.

For instance, Tata Electronics announced plans to jointly develop capabilities in semiconductor materials with German tech major Merck. And Kaynes Semicon partnered with Infineon to develop India’s first MEMs Microphone chips, which can be used to make indigenous wireless earphones in India, as well as a partneship for advanced semiconductor packages.

But beyond the big headlines, lie some uncomfortable questions. Is this just about optics? And is India truly ready to become a semiconductor manufacturing hub like many want it to?

Even though the country has cleared ten projects worth over $18 Bn (INR 1.5 Lakh Cr) under its semiconductor mission since 2021, we are hardly on par with nations like Taiwan and South Korea that are miles ahead in manufacturing depth, advanced R&D and even basic infrastructure.

While efforts are afoot when it comes to giving a push to the Indian semiconductor industry — with fabs, packaging plants and silicon carbide facilities already a work in progress at places like Gujarat’s Dholera and Assam’s Jagiroad and companies like Tata Electronics spearheading the show — could we have done anything differently?

“Before embracing a manufacturing infrastructure, a nation should first build societal infrastructure,” a senior official of Taiwan Semiconductor Manufacturing Company (TSMC) told Inc42 on the sidelines of Semicon India.

An ideal societal infrastructure comprises functional hospitals, schools, and roads and connectivity. These are crucial for any market........

© Inc42