India’s ambitions in the global semiconductor sector are finally beginning to materialize, but with a twist that sets the country apart from the prevailing industry narrative. While much of the world’s attention is riveted on the relentless pursuit of ever-smaller, cutting-edge chips, India is carving out its own niche by focusing on mature-node semiconductor manufacturing—specifically, chips in the 28nm to 65nm range. This deliberate strategy, as highlighted by Bastion Research and reported by The Economic Times and ANI, is designed to meet the surging demand in automotive, telecommunications, and industrial electronics sectors, rather than joining the crowded race for the most advanced nodes.
It’s a bold move, and one that harks back to the early days of Taiwan and South Korea’s semiconductor industries in the 1970s through the 1990s. According to Bastion Research, "Though today there is not much to share as far as India's progress in establishing a semiconductor fab is concerned, one thing is clear – India’s semiconductor ambitions are taking shape with a strategic focus on mature-node manufacturing, a smart move considering the vast demand for 28nm-65nm chips in sectors like automotive, telecom, industrial electronics, etc. While global giants dominate the cutting-edge node space, India is wisely positioning itself to manufacture mature nodes and filling a big gap."
In other words, India isn’t trying to outpace TSMC or Samsung in the race to 3nm or 5nm chips. Instead, it’s aiming to become the go-to supplier for the types of chips that power everything from cars and telecom towers to factory robots and household appliances—devices that don’t require the absolute latest in chip technology, but still need reliable, cost-effective semiconductors in massive quantities.
This strategy comes at a time when global supply chains are undergoing seismic shifts. The much-discussed “China +1” strategy, which encourages companies to reduce their reliance on Chinese manufacturing by diversifying into other countries, has given India a timely opportunity. As Bastion Research puts it, "China +1 strategy has become a powerful global trend, pushing companies to diversify their supply chains and look for alternatives to China. This has fueled India's growth in system integration, as the country is increasingly seen as a reliable and cost-effective partner in the global supply chain."
India’s system integration capabilities are already gaining traction, particularly in sectors like automotive electronics, telecom, consumer devices, and medical technology. The country’s growing technical talent pool and rapidly scaling operations are seen as matching global standards—a crucial factor as India seeks to attract more multinational investment and partnerships.
To accelerate this transformation, the Indian government launched the Semicon India Programme (also known as the Indian Semiconductor Mission, or ISM 1.0) in 2021. The initiative boasts a hefty incentive package of Rs 76,000 crore, aimed squarely at attracting global manufacturers, building fabrication plants (fabs), establishing packaging units for assembly, testing, marking, and packaging (OSAT & ATMP), and nurturing a robust local supply chain. The focus, again, is on mature-node fabs—those producing 28nm to 65nm chips—rather than bleeding-edge technology.
Recent months have seen a flurry of activity on this front. In August 2025, the government gave the green light to four new semiconductor manufacturing projects, representing a combined investment of Rs 4,600 crore. These new units will be established in Odisha, Andhra Pradesh, and Punjab, broadening the geographic footprint of India’s semiconductor ambitions. With these approvals, the India Semiconductor Mission now boasts a portfolio of 10 projects spread across six states, with total investments reaching a staggering Rs 1.6 lakh crore.
Prime Minister Narendra Modi underscored the significance of these developments during his Independence Day address from the ramparts of the Red Fort. He declared, "Made-in-India semiconductor chips will be available in the market by the end of this year," signaling a major milestone in India’s technological journey. This announcement, widely reported by The Economic Times and ANI, marks a turning point for a country that has long relied on imports for its semiconductor needs.
India has already approved the construction of six semiconductor plants, signaling a rapid expansion of its manufacturing base. In May 2025, the Union Cabinet gave its blessing to the country’s sixth semiconductor manufacturing unit, to be located near Jewar Airport in western Uttar Pradesh. This facility will be established through a joint venture between India’s HCL Group and Taiwanese electronics giant Foxconn—a partnership that underscores the international confidence in India’s semiconductor trajectory.
The other five plants are strategically distributed, with four situated in Gujarat: the Tata Electronics–PSMC Semiconductor fabrication plant, the CG Power–Renesas–Stars Microelectronics ATMP unit, Micron Technology’s ATMP facility, and the Kaynes Semicon ATMP unit. The Tata Semiconductor Assembly and Test (TSAT) unit, meanwhile, is located in Assam, further extending the reach of India’s semiconductor infrastructure.
This rapid build-out of facilities is more than just a numbers game. It reflects a broader commitment to fostering a homegrown semiconductor ecosystem—one that can not only meet domestic demand, but also position India as a key player in the global supply chain. The focus on mature-node chips is particularly savvy, given that these chips are the workhorses of modern industry. While smartphones and high-end computers may grab headlines with their need for the tiniest, most advanced chips, the bulk of the world’s electronics rely on mature-node semiconductors.
India’s approach has drawn comparisons to the early days of Taiwan and South Korea’s semiconductor industries, both of which began by focusing on less advanced chips before gradually moving up the value chain. As Bastion Research notes, "India’s semiconductor ambition today is quite similar to where Taiwan and South Korea were in the 1970s-1990s." That’s a promising analogy, given the eventual global dominance those countries achieved in the sector.
Of course, challenges remain. Building a competitive semiconductor industry from the ground up is no small feat, and India will need to continue investing in talent development, research and development, and infrastructure. But with a clear-eyed focus on mature-node manufacturing, generous government incentives, and a growing roster of international partners, India appears well-positioned to fill a critical gap in the global chip supply chain.
As the year draws to a close, all eyes will be on whether India can deliver on Prime Minister Modi’s promise and bring its first homegrown semiconductor chips to market—a moment that could well mark the dawn of a new era for Indian industry and the global electronics landscape.
