India's Chip Push: 10 Projects, ₹1.6 Lakh Crore Approved

A Strategic Push for Self-Reliance

India's ambition to establish a formidable presence in the global electronics market is taking concrete shape. The government has approved 10 semiconductor projects with a combined investment commitment of approximately ₹1.6 lakh crore. This strategic initiative, spearheaded by the India Semiconductor Mission (ISM), aims to build a resilient, end-to-end ecosystem, reducing the nation's heavy reliance on imported chips and securing critical technology supply chains. The projects are strategically distributed across six states, signaling a nationwide effort to foster high-tech manufacturing and create skilled employment opportunities.

The India Semiconductor Mission Framework

The Semicon India Programme, launched in 2022, is the driving force behind this transformation. With an initial incentive package of ₹76,000 crore, the mission is designed to support the entire semiconductor value chain. This includes chip design, wafer fabrication (fabs), and assembly, testing, marking, and packaging (ATMP/OSAT) facilities. The goal is not just to manufacture chips but to cultivate a comprehensive ecosystem that includes research, design, and a skilled workforce, positioning India as a reliable partner in the global semiconductor landscape.

Gujarat Emerges as a Key Hub

Among the six states hosting these projects, Gujarat is emerging as the flagship hub with four approved units. The state's Dholera Special Investment Region will host the country's first full-scale wafer fabrication plant, a joint venture between Tata Electronics and Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC), with an investment of ₹91,000 crore. Additionally, global memory chip giant Micron Technology is establishing a large ATMP facility in Sanand. Projects from CG Power and Kaynes Technology further solidify Gujarat's status as a central node in India's semiconductor map.

A Nationwide Manufacturing Footprint

Beyond Gujarat, the approved projects span several other states, creating a distributed network of semiconductor manufacturing. Assam is set to host an OSAT facility by Tata Electronics, while Uttar Pradesh will see a new plant in Greater Noida from a joint venture between Foxconn and HCL Group. New projects focused on compound semiconductors and advanced packaging are also coming up in Odisha, Punjab, and Andhra Pradesh. This geographical diversification is supported by tailored state policies and infrastructure development plans, ensuring a broad-based growth of the sector.

From Blueprint to Production Floor

India’s chip ambitions are rapidly moving from planning to execution. Two facilities, led by Micron Technology and Kaynes Technology, have already commenced pilot or commercial production. Union Minister for Electronics and IT, Ashwini Vaishnaw, has announced that four companies-Micron, CG Power, Kaynes Technology, and Tata Electronics-are expected to begin commercial manufacturing of semiconductor chips within 2026. This marks a significant milestone, demonstrating the tangible progress of the India Semiconductor Mission.

Focus on Compound Semiconductors

Recent approvals have expanded the scope of India's capabilities to include compound semiconductors. SiCSem Private Limited, in collaboration with a UK-based firm, is establishing India's first commercial Silicon Carbide (SiC) fabrication facility in Bhubaneswar, Odisha. SiC chips are critical for high-power applications in electric vehicles, 5G infrastructure, and renewable energy systems. Other new approvals include projects in advanced packaging from companies like HIPSPL, CDIL, and ASIP Technologies, further deepening the ecosystem.

Nurturing a Design Ecosystem

Recognizing that manufacturing is only one part of the equation, the government is also investing heavily in design capabilities. Through the Semicon India Programme, advanced chip design tools have been provided free of cost to 315 universities, resulting in over 200 lakh hours of usage by students and researchers. This initiative has already led to 211 chip tape-outs from 75 institutions. Furthermore, 24 chip design startups have been approved for support, with 14 of them collectively raising over ₹650 crore in venture funding, fostering a new generation of innovation in the country.