India is increasingly positioning itself as a significant player on the global semiconductor stage, buoyed by ambitious investments and collaborations aimed at transforming its technological future. Recent projections suggest the country could welcome investments up to $30 billion over the next three to five years aimed at establishing India as a leading hub for semiconductor manufacturing.
Just this week, the Maharashtra government approved four substantial projects with combined investments totaling roughly Rs 1.17 lakh crore (approximately $14 billion). Among these initiatives is a joint venture between Israel’s Tower Semiconductor and India’s Adani Group, which will set up semiconductor manufacturing facilities at Panvel, located within the Raigad district. The initial phase of this project is expected to involve Rs 58,763 crore, followed by another Rs 25,184 crore allocated for the second phase, which altogether promises to create at least 15,000 jobs for local workers.
Industry experts are optimistic about these developments. Prabhu Ram, VP of Industry Research Group for CyberMedia Research (CMR), commented, “By enhancing production capacity, India is poised to become a major player in the sector. National initiatives, such as the Semicon India Programme and the India Semiconductor Mission, aim to capture significant market share globally, promote innovation, and stimulate economic growth through job creation and technological advancements.”
During Prime Minister Narendra Modi’s recent visit to Singapore, both countries committed to strengthening cooperation within the semiconductor field. This partnership aims to leverage the complementary strengths of their respective semiconductor ecosystems, focusing on policy changes to boost ecosystem development and supply chain resilience.
Adding to the momentum, the Union Cabinet under PM Modi's administration has sanctioned the establishment of another semiconductor unit, this one being developed by Kaynes Semicon Pvt Ltd, located at Sanand, Gujarat. This initiative will see Rs 3,300 crore invested and promises to produce around 60 lakh chips each day. These projects mark significant steps, with expectations indicating India’s semiconductor market will reach $64 billion by 2026—nearly triple its size when comparing figures from 2019.
Meanwhile, major corporate entities continue to mobilize financial resources toward semiconductor manufacturing. The American company Micron is constructing its first Outsourcing Assembly and Testing (OSAT) facility, investing around Rs 23,000 crore within Sanand to support DRAM and NAND products, which are set to cater to both the Indian and international markets.
Another leap forward involves the Tata Group collaborating with Powerchip Semiconductor Manufacturing Corporation (PSMC) from Taiwan to establish advanced semiconductor fabrication facilities (fabs) in Dholera, Gujarat. This project alone will see investments soar to Rs 91,000 crore, with production capability anticipated to reach 50,000 wafers monthly once operational.
Adding to the geographical spread of these facilities, the Tata Electronics division is also setting up its semiconductor assembly and testing plant at Jagiroad, Morigaon, Assam. This will be the first of its kind established within the northeastern region, involving investments of roughly Rs 27,000 crore.
Another notable project includes CG Power’s collaboration with Japan’s Renesas Electronics and Thailand’s Stars Microelectronics to develop an OSAT facility also situated in Sanand. This facility will manufacture components used within consumer electronics, industrial equipment, and semiconductors related to 5G technology, with expectations set at producing roughly 1.5 crore chips daily.
These developments emerge during a pivotal moment for the semiconductor industry, especially amid global supply chain vulnerabilities highlighted by recent crises such as the COVID-19 pandemic. With its proactive investments and initiatives, India is not only banking on technological advancements but is also determined to bolster its economic framework by nurturing domestic production capabilities to reduce reliance on foreign sources.
The Indian government’s commitment to fostering the semiconductor sector serves as part of its overarching strategy to become self-reliant and competitive on the global tech front. With various initiatives underway, including significant backing through financial incentives, many view India’s ambitions as both timely and transformative.
Investments like these are expected to generate waves of new job opportunities, fostering economic growth and establishing India as integral to the global supply chain. It’s clear: the age of semiconductors is not just beginning; it's picking up speed, and India is making its bid to be one of the leaders on this high-tech frontier.
Notably, the collaboration between India and Singapore exemplifies the move toward building global relationships through technological advancements. Both nations will exchange knowledge, allowing India to benefit from Singapore's established semiconductor infrastructure and expertise.
While the road to becoming the world's semiconductor hub is filled with challenges, the united front from Indian corporations and government initiatives is proving to be compelling as investments soar. Analysts predict the coming years could yield significant returns as domestic manufacturing meets the burgeoning global demand for semiconductors across various sectors, including automotive, telecommunications, consumer electronics, and more.
Conclusively, with its focus on innovation, increased production capacity, and strategic global alliances, India is aiming to redefine its position within the global semiconductor market, turning aspiration and ambition effectively onto reality, and firmly establishing itself as the next major player on the semiconductor stage.
