India has been actively advancing its semiconductor industry through the India Semiconductor Mission (ISM), launched in 2022, with a focus on attracting investments and building a domestic chipmaking ecosystem. Below is an overview of recent semiconductor investments approved by the Indian government, based on the latest available information:
Semiconductor Investments:
HCL Group and Foxconn Joint Venture (Jewar, Uttar Pradesh) Investment: ₹3,706 crore (~$435 million)
Approved on May 14, 2025, this is the sixth semiconductor unit under the ISM. The plant, located near Jewar airport, will manufacture display driver chips for mobile phones, laptops, automotive dashboards, and consumer electronics. It has a planned capacity of 20,000 wafers and 36 million chips per month, with commercial production expected to start in 2027.
Supports India’s push for self-reliance under the Atmanirbhar Bharat initiative and caters to global tech giants like Apple.
Tata Electronics and Powerchip Semiconductor (Dholera, Gujarat) Investment: ₹91,000 crore (~$10.44 billion)
Approved in February 2024, this is India’s first major semiconductor fabrication plant, with a capacity of 50,000 wafers per month. It is expected to create over 20,000 direct and indirect jobs, with production slated to begin by late 2026. Tata has requested an additional 80 acres to expand the 160-acre facility.
A landmark project to reduce India’s reliance on imported chips.
Tata Semiconductor Assembly and Test (TSAT) Unit (Morigaon, Assam) Investment: ₹27,000 crore (~$3.2 billion)
Approved in 2024, this unit focuses on semiconductor assembly and testing, complementing the Dholera fab. It is part of Tata’s broader semiconductor strategy.
Enhances India’s capabilities in the downstream chip supply chain.
CG Power, Renesas Electronics, and Stars Microelectronics (Gujarat) Investment: ₹7,600 crore (~$900 million)
Approved in 2024, this project involves a semiconductor facility in collaboration with Japanese and Thai partners, focusing on chip manufacturing and testing.
Strengthens India’s partnerships with global semiconductor players.
Micron Technology (Sanand, Gujarat) Investment: ₹22,500 crore (~$2.75 billion)
Approved in 2024, this assembly, testing, marking, and packaging (ATMP) facility is expected to generate 5,000 direct and 15,000 indirect jobs. It focuses on memory chip production and is part of Micron’s global expansion strategy.
Bolsters India’s role in the global semiconductor supply chain, particularly for AI and high-performance computing applications.
Sahasra Semiconductor (Bhiwadi, Rajasthan) Investment: ₹3,307 crore (~$400 million)
Approved under the ISM, this facility focuses on memory chip production, supported by government incentives under the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS).
Contributes to India’s growing memory chip ecosystem.
Lam Research (Karnataka) Investment: ₹10,000 crore (~$1.2 billion)
Announced on February 11, 2025, U.S.-based Lam Research, a key supplier of semiconductor manufacturing tools, signed an MoU with the Karnataka government to invest over the next few years. The investment aims to strengthen India’s semiconductor manufacturing ecosystem.
A major vote of confidence in India’s semiconductor ambitions, enhancing toolmaking capabilities critical for chip production.
Cyient Ltd launched a subsidiary, Cyient Semiconductors, with a $100 million investment to develop fabless semiconductor solutions, focusing on ASIC design and turnkey solutions.
Yield Engineering Systems (YES) India, YES began shipping its first semiconductor manufacturing tool (VeroTherm Formic Acid Reflow) from Coimbatore in March 2025, with plans to invest ₹500 crore over the next five years to expand its facility.
NXP Semiconductors plans to invest over $1 billion to expand R&D operations in India, enhancing the country’s chip design ecosystem.
Analog Devices and Tata Group Exploring domestic semiconductor manufacturing opportunities, though specific investment details are not yet finalized.
L&T Semiconductor Technologies A fabless chip startup by Larsen & Toubro aims to establish a $10 billion semiconductor fabrication plant by 2027, contingent on achieving $1 billion in annual revenue. It recently opened a new office in Noida.
Vedanta-Foxconn JV (2023): A $19.5 billion joint venture collapsed due to escalating costs and delays in government incentives.
India Semiconductor Mission (ISM): Backed by a ₹76,000 crore (~$10 billion) incentive package, the ISM provides up to 50% financial support for eligible project costs. It has approved six projects so far and is considering further proposals, including a potential ₹40,000 crore display fab unit by Japan’s Sharp.
Semicon India Programme Offers subsidies for fabrication facilities, ATMP, and OSAT units, alongside R&D investments and workforce development.
States like Gujarat, Uttar Pradesh, and Karnataka provide land allocations and additional financial support to attract semiconductor investments.
India’s semiconductor market is projected to grow from $52 billion in 2024 to $103.4 billion by 2030, with a 13% CAGR, driven by demand in handsets, IT, telecom, consumer electronics, automotive, aerospace, and defense.
The government aims for 25% local value addition in electronics manufacturing by 2025-26 and 40% by 2030.
India’s talent pool, with over 270 academic institutions and 70 startups working on chip design, and the presence of global players like Applied Materials, Lam Research, and Merck, supports this growth.
India currently holds just 0.1% of global wafer capacity and accounts for 6.5% of global semiconductor demand, highlighting the need for significant capacity expansion.
India’s semiconductor industry is gaining momentum with significant investments approved under the ISM, including the HCL-Foxconn JV, Tata’s Dholera and Assam projects, Micron’s ATMP unit, and Lam Research’s toolmaking investment.
These projects, supported by government incentives and state-level initiatives, position India as an emerging player in the global semiconductor ecosystem.
