India is aiming to become a major player in the semiconductor industry through several semiconductor projects across the country. Notable upcoming semiconductor projects in India are:

• Semiconductor Fab with 50,000 wafer starts per month capacity – at Dholera, Gujarat

• Semiconductor ATMP (Assembly, Test, Marking and Packaging) unit – at Morigaon, Assam

• Semiconductor ATMP unit for specialized chips – at Sanand, Gujarat

• Kaynes Semicon Semiconductor Unit - Sanand, Gujarat

• Micron's Semiconductor Assembly and Test Facility (OSAT) - Sanand, Gujarat

• Semiconductor fab by Tower Semiconductor and Adani Group - Taloja, Mumbai

• Suchi Semicon OSAT facility

• HCL-Foxconn Semiconductor Plant - near Jewar Airport, Uttar Pradesh

India's semiconductor sector is expected to further expand with the recent increase in semiconductor budget allocation in 2025, by 83% to INR 7,000 crores. Semiconductor chips will increasingly be integrated into several industries in India, including aerospace, automobile, communication, IT, clean energy, defense, and others, due to the growing need for smartphones, automobiles, and data storage. The size of Indian semiconductor market was about USD 38 billion in 2023, USD 45-50 billion in 2024-25 and is expected to reach USD 100-110 Billion by 2030.

Upcoming Semiconductor Plants In India

Semiconductor Fab with 50,000 WFSM capacity – at Dholera, Gujarat

Tata Electronics Private Limited (TEPL) plans to establish a semiconductor fabrication facility at Dholera, Gujarat. Additionally, TEPL is forming a collaboration with Powerchip Semiconductor Manufacturing Corp (PSMC) from Taiwan. It is expected to begin operations by 2027. The Gujarat government has already started ramping up residential infrastructure development for the employees.

Investment: This facility will be constructed in Dholera, Gujarat. The investment in this fabrication plant will amount to INR 91,000 crore.

Technology partner: PSMC is well-known for its exceptional proficiency in the logic and memory foundry sectors and operates six semiconductor foundries in Taiwan.

Capacity: The production capacity is 50,000 wafer starts per month (WSPM).

Segments covered: High-performance computer chips using 28 nm technology. Power management chips in EVs, communication, defense, automotive, consumer electronics, display, and power electronics. Power management chips are used for applications requiring high voltage and current.

Semiconductor ATMP (Assembly, Test, Marking and Packaging) unit – at Morigaon, Assam

Tata Semiconductor Assembly and Test Pvt Ltd ("TSAT") plans to establish a semiconductor facility in Morigaon, Assam.

Investment: This entity will be established with a capital investment of INR 27,000 crore.

Technology: TSAT Semiconductor is now developing innovative semiconductor packaging technologies, such as flip chip and ISIP (integrated system in package) technologies, that are being created within the company.

Capacity: 48 million units per day

Segments covered: Industries such as automotive, electric vehicles, consumer electronics, communications, and mobile phones.

Semiconductor ATMP unit for specialized chips – at Sanand, Gujarat

In collaboration with Renesas Electronics Corporation of Japan and Stars Microelectronics of Thailand, CG Power will establish a semiconductor facility in Sanand, Gujarat.

Investment: This unit will be established with a capital investment of INR 7,600 crore.

Technology partner: Renesas is a prominent semiconductor company specializing in producing customized chips. The company runs 12 semiconductor facilities and holds a significant position in the market for microcontrollers, analog, power, and System-on-Chip (SoC) products.

Capacity: 15 million units per day

Segments covered: The CG power semiconductor unit will produce semiconductor chips for various applications, including consumer electronics, industrial machinery, automotive systems, and power generation.

On 28th August 2025, CG Power and Industrial Solutions Limited announced its subsidiary CG Semi Private Limited launched its first outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat. With this, CG Semi Private becomes India's first full service OSAT provider offering traditional and advanced packaging technologies. This is one of the first operational semiconductor fabs in India.

Kaynes Semicon Semiconductor Unit - Sanand, Gujarat

Kaynes Semicon Pvt Limited is awarded to build a plant in Sanand, Gujarat. The company expects to produce its first chips by mid-2025. 

Investment: The investment proposed for this unit is INR 3,300 crore.

Technology partner: It has signed a Memorandum of Understanding (MoU) with Lightspeed Photonics a Singapore-based company to provide technical assistance. 

Capacity: The capacity of this unit will be 60 Lakh chips per day.

Segments covered: The chips produced in this unit will be used in a variety of applications which include segments such as industrial, automotive, electric vehicles, consumer electronics, telecom, mobile phones, etc.

Fujitsu General announced it is selling its power modules business to L&T Semiconductor Technologies Ltd for Yen 2 billion (USD 1.8 million). This deal also includes transferring the production facilities to Kaynes Semicon, part of Kaynes Technology India. This sale is expected by 23rd June 2025.

Micron's Semiconductor Assembly and Test Facility (OSAT) - Sanand, Gujarat

Micron's new facility will support assembly and test manufacturing for both DRAM and NAND products to address demand from domestic and international markets. This project is being built in two phases. Phase 1 will include 500,000 square feet of planned cleanroom space. phase will also include construction similar to Phase 1. This semiconductor chip factory in India expects to begin its Phase 1 operations by mid-2025.

Investment: About USD 825 million is being invested by Micron in a total of USD 2.75 billion investment. Micron will receive 50% fiscal support from the Indian central government and incentives for about 20% of the project from the Gujarat government. 

Capacity: DRAM/NAND Assembly 101.6 million units per month 

SSD/Module Assembly 3.58 million units per month

Technology partner: Tata Projects is awarded the contract to construct DRAM and NAND assembly and test facility in India using modern construction methods and techniques through 4D BIM hybrid modular accelerated construction. 

Segments Covered: It will fulfill the demand of domestic and international markets including segments like the Internet of Things (IoT), Automotive, smartphones, and data centers.

Semiconductor fab by Tower Semiconductor and Adani Group - Taloja, Mumbai

A second semiconductor fab plant is to be built by the joint venture of Tower Semiconductor and Adani Group at Taloja in Panvel, Mumbai. 

Investment:  Last year in September 2024, the Maharashtra Cabinet approved a USD 10 billion (INR 83,947 crores) investment proposal by the joint venture of Tower Semiconductor and Adani Group to set up a semiconductor chip manufacturing unit. 

About INR 58,763 crore has been allocated for the first phase while the remaining INR 25,184 crore will be invested in the second phase. 

Capacity: This semiconductor manufacturing plant is planned with an initial capacity of 40,000 WSPM in the first phase with a total capacity of 80,000 WSPM. 

Suchi Semicon OSAT facility

Suchi Semicon plans to invest INR 850 crores to set up an OSAT facility. It submitted a requisite proposal on 17th April 2025 to the Central government under the India Semiconductor Mission (ISM) to receive requisite approvals and incentives. 

Currently, it has already invested INR 100 crores in setting up a pilot line and started sending chips for testing it its partners in the US. 

HCL-Foxconn Semiconductor Plant - near Jewar Airport, Uttar Pradesh

It is being developed by a joint venture of HCL (India) and Foxconn (Taiwan) near Jewar Airport in Yamuna Expressway Industrial Development Authority (YEIDA). This sixth semiconductor unit in India is approved under the India Semiconductor Mission. 

Investment: This new semiconductor unit approved by the Union cabinet on 14th May 2025, is expected to attract an investment of INR 3,700 crores. 

Technology partner: HCL is known for developing and manufacturing hardware and Foxconn is a global major in electronic manufacturing. These giants in a joint venture will set up a semiconductor manufacturing plant in Uttar Pradesh.

Capacity: This semiconductor plant is designed to manufacture 20,000 wafers per month with an output capacity of 36 million units per month.

Segments covered: This semiconductor plant will manufacture display driver chips for mobile phones, laptops, automobiles, PCs, and the myriad of other devices that have displays.

India's Semiconductor Industry

India is the second largest purchaser of semiconductor chips globally, relying heavily on imports from nations such as the USA, Japan, and Taiwan to fulfill its needs. Over the last decade, India has made significant advances in the semiconductor industry through initiatives such as the India Semiconductor Mission (ISM). 

The government's allocation of INR 760 billion to companies engaged in silicon semiconductor fabs, display fabs, and related activities has further boosted the semiconductor industry in India.

In March 2024, India made a notable advancement towards achieving its objective of semiconductor manufacture. It promised to establish three semiconductor plants: a chip fabrication unit in Dholera, Gujarat, and two ATMP (assembly, testing, marking, and packaging) facilities in Sanand, Gujarat, and Morigaon, Assam. 

Key Initiatives Taken by the Government of India

The Indian Government has implemented measures to establish India as a prominent center for semiconductor production by providing fiscal and non-fiscal incentives, research and development support, and technology cooperation. Essential measures in this regard include the following ones:

Semicon India Program 

The "Semicon India Program" was authorized by the Government in December 2021 to foster a sustainable semiconductor and display manufacturing ecosystem in India. The government-funded Semicon India Program, worth INR 760 billion, supports semiconductor firms and consortiums. The program aims to help India's semiconductor sector thrive.

Semicon India 2025 is all set to take place from September 2-4th 2025 in New Delhi. It is organized by India Semiconductor Mission (ISM) and SEMI. This event will feature new international pavilions from Japan, South Korea, Singapore, and Malaysia, and India. It aims to strengthen India's semiconductor ecosystem and will host over 300 exhibitors showcasing electronics alongside 3-day conference.

*India's First Semiconductor

On 2nd September 2025, Prime Minister Narendra Modi inaugurated SEMICON India 2025, in New Delhi. This is a 3 day conference with over 350 exhibitors and thousands of attendees around the world. During this, Modi emphasized on shift from oil to black gold to semiconductors (digital diamonds) in 21st century.

During the event, Union Minister Ashwini Vaishnaw presented India’s first fully indigenous 32-bit microprocessor named Vikram developed by ISRO's Semiconductor Laboratory (SCL) in Chandigarh. Vikram is a 32 chip is space-grade, built to tolerate extreme conditions, and has already been validated in orbit during the PSLV-C60 mission.

India Semiconductor Mission (ISM)

The Government created the India Semiconductor Mission (“ISM”) to encourage semiconductor companies to set up operations in India to achieve long-term goals and facilitate development. 

ISM is the established central organization for the Semicon India Program, receiving applications, evaluating them technically and financially, recommending applicants, and executing other duties as assigned by the Ministry of Electronics and Information Technology (“MeITY”) from time to time.

Schemes 

Starting in 2021, the Government initiated several schemes to encourage significant investments in establishing facilities in India. The schemes deal with semiconductor fabs, display fabs, compound semiconductors, and design-linked incentives. Eligible companies in the semiconductor industry may apply for fiscal or non-fiscal incentives using the Semicon India Program.

Incentives by State Governments

Uttar Pradesh, Gujarat, and Odisha state governments supported different semiconductor policies to facilitate the successful execution of the Semicon India Program and establish these states as the favored locations for the semiconductor industry. 

The policies encompass many benefits such as subsidization of land acquisition, reimbursement of stamp duty, provision of high-quality water at a reduced rate, subsidy on power tariffs, streamlined approval process, assistance in land procurement, support with right of way, and approvals for land use changes, and more.

On 6th June 2025, Tata Electronics announced a Memorandum of Understanding (MoU) with Bharat Electronics Limited (BEL) a Navratna Public Sector Undertaking (PSU) under the Indian Defence Ministry. Under this agreement, both the parties will identify fab plants, OSAT and design service solutions including Microcontrollers (MCUs), Systems-on-Chip (SoCs), Monolithic Microwave Integrated Circuits (MMICs) and other Processors.

India plans to build its own 2nm GPU by 2030 to compete with NVIDIA with a project funding of USD 200 million which is led by C-DAC, Bengaluru. This project aims to reduce reliance on US chipmakers after the export restrictions on NVIDIA's B200, B300 and GB200 chips. India is in plans to partner with TSMC to make mass production of semiconductor chips more affordable.

Benefits of Semiconductor Manufacturing Units in India

India will benefit from these semiconductor units in the following ways,

Employment potential

These units will create 20,000 direct employment opportunities in sophisticated technological fields and over 60,000 indirect jobs. These units will expedite jobs in downstream automotive, electronics production, telecom manufacturing, industrial manufacturing, and other businesses that rely on semiconductors.

 Establishment of Semiconductor Ecosystem

The India Semiconductor Mission has successfully established a strong semiconductor ecosystem in a relatively short period. These accomplishments signify a critical point in India's progress toward becoming a significant participant in the worldwide semiconductor sector. 

Fostering Growth of Semiconductor Ecosystem

The achievements of the India semiconductor mission facilitate the gradual development of the semiconductor ecosystem in India. These milestones represent a significant change in thinking, pushing the country towards increased independence, technological advancement, and economic success in semiconductors.

Development of Chip Fabrication Capabilities

India possesses extensive proficiency in chip design, and with the creation of these semiconductor units, the country is positioned to cultivate formidable capabilities in chip manufacturing. This achievement strengthens India's technological capabilities and establishes it as a prominent hub for semiconductor production.

Challenges in the Development of Semiconductor Projects 

Infrastructure Development

Setting up semiconductor manufacturing facilities necessitates substantial infrastructure, encompassing dependable power supply, water resources, transportation networks, and the availability of competent workers.

Supply Chain Management

Establishing a resilient and effective supply chain for semiconductor production is crucial. The challenges encompass guaranteeing the prompt availability of raw materials, efficiently overseeing logistics, and reducing interruptions in the supply chain.

Technology Upgradation

The semiconductor business experiences rapid evolution, requiring constant innovation and investment in research and development (R&D). Adopting advanced technology to match international standards presents difficulties, especially in securing funds and obtaining state-of-the-art technologies.

Skilled Workforce

The semiconductor manufacturing process necessitates a workforce with advanced expertise in various domains, including chip design, fabrication, testing, and packaging. The challenges encompass needing more proficient experts and tailored training programs to fulfill the sector's requirements.

Financial Support

Establishing semiconductor manufacturing facilities requires significant investment in infrastructure, technology, and skilled personnel. Obtaining sufficient financial assistance, such as subsidies, tax benefits, and inexpensive access to funding, is difficult for participants in the business.

Semiconductor News in India

On 16th October 2025 Kaynes Semicon (a subsidiary of Kaynes Technology India) shipped India’s first commercially manufactured 900 multi-chip modules (MCMs) from its Sanand facility to Alpha & Omega Semiconductor. The shipped product, called IPM5, integrates 17 dies in one package. The Sanand plant plans to scale up to 6.3 million chips per day, with full mass production expected by January 2026.

On 14th October, 2025, L&T Semiconductor Technologies (LTSCT) entered into a long-term partnership with Hon Young Semiconductor (HYS), a subsidiary of Foxconn. Under this agreement both the partners will develop high-voltage semiconductor wafers ranging from 650V to 3,300V in India. These wafers will be used in electric vehicles (EVs), industrial drives, and power infrastructure. Additionally, the agreement grants LTSCT access to HYS's fabrication facilities in Taiwan, facilitating rapid prototyping and volume scaling of power components.

On 12th October 2025, Semiconductor innovation museum was inaugurated in Hyderabad by the Technology Chip Innovation Corporation (T-Chip). This museum is first of its kind that will showcase the India's first indigenous AI chip, AI-powered humanoid chip, robotic pet companions, reusable rocket engine prototype and next-gen EV technology with smart display systems.

Back on 6th October 2025, INOX Air Products (INOXAP) it has acquired a land strategic land parcel in Dholera, Gujarat and will begin the construction an Electronic Speciality Gas Hub which is currently in advanced stage of planning. This hub will manufacture and supply Ultra High Purity (UHP) bulk and speciality gases like nitrogen, oxygen, argon, hydrogen that will be used for advanced semiconductor fabrication process.

On 5th October 2025, the Union Minister of Electronics & Information Technology, Shri Ashwini Vaishnaw approved 'NaMo Semiconductor Laboratory' at IIT Bhubaneswar. This laboratory is funded under the (Member of Parliament Local Area Development Scheme) MPLAD Scheme with an estimated cost of USD 4.95 crores to boost semiconductor research and skill development under " Make in India" and "Design in India" initiatives.

Semiconductor manufacturing in India is taking a new turn, On 29th September 2025, UST and Kaynes Semicon announced a joint venture to build a INR 3,330 crores Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat.

On 1st September 2025, L&T Semiconductor Technology Ltd, projected that India' semiconductor consumption is expected to increase fivefold reaching over USD 120 billion by 2030 from the current USD 24 billion. This growth was highlighted during the launch of the Semiconductor Product Design Leadership Forum.

On 28th August 2025, CG Power and Industrial Solutions Limited announced its subsidiary CG Semi Private Limited launched its first outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat. With this, CG Semi Private becomes India's first full service OSAT provider offering traditional and advanced packaging technologies.

Japan and India announce plants to transfer production of older semiconductor and LCD screen technologies to India. This announcement is followed by a comprehensive plan developed jointly by Japan External Trade Organization (JETRO) and the Confederation of Indian Industry which will be announced in the coming weeks. The scope of the plan extends beyond semiconductors to include crystal displays, solar power equipment, storage batteries and compressors.

On 15th august 2025, Prime Minister Narendra Modi announced India will launch its first fully domestically manufactured semiconductor chips by the end of 2025. Minister of State for Electronics and IT confirmed that the first packaged chip is expected to be rolling off the assembly lines by December 2025.

On 12th August 2025, the Union Cabinet approved four new semiconductor manufacturing projects worth INR 4,594 crore under the India Semiconductor Mission, aiming to boost domestic chip production and reduce import dependence.

On 17th July, 2025, India’s Tata Electronics entered into a Memorandum of Understanding (MoU) with Robert Bosch GmbH to collaborate across various domains within the electronics and semiconductor sectors. As part of the agreement, both the companies plan to work together in advanced chip packaging and semiconductor manufacturing.

This collaboration will majorly focus on Tata Electronics upcoming assembly and testing facility in Assam and its planned semiconductor foundry in Gujarat.

Apart from the collaboration, both the companies will jointly explore opportunities in the local electronic manufacturing services (EMS) space, particularly for vehicle electronics, aiming to deliver mutual value.

New Semiconductor Companies in India (2025)

• Vedanta

• Bharat Electronics Ltd

• CG Power and Industrial Solutions

• ASM Technologies

• L&T Semiconductor Technologies Limited

Conclusion 

The semiconductor manufacturing industry in India is now in its early stages of development. However, India has made significant efforts to enter this market, particularly in response to the global scarcity of semiconductors in recent years.

The semiconductor industry in India has seen a rise in investment interest due to the introduction of several Government programs. 

The successful execution of schemes, regulations, and reforms aimed at facilitating business operations in India will be crucial for realizing India's semiconductor strategy. This plan establishes India as a worldwide center for semiconductor design, manufacture, and technology advancement.

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