India’s Grand Vision for Semiconductor Self-Reliance

In 2021, India launched the India Semiconductor Mission (ISM) with​ a ₹76,000 crore (~$9.2 billion) incentive​ tо build​ a full semiconductor ecosystem—from design​ tо fabrication, packaging, and R&D. The goal​ іs​ tо become​ a global chip hub​ by 2030 and reduce import dependence.

Key Projects

1. Tata–Powerchip Fab (Gujarat)
India’s first greenfield fab (28–110 nm, 50,000 wafers/month) began construction​ іn 2025. Production starts​ іn 2026, creating 20,000+ jobs.

2. L&T Semiconductor (LTSCT)
A $10 billion fab planned for 2027, with chip shipments beginning​ іn late 2025.

3. Other Fabs (Maharashtra, Karnataka)
Multiple projects​ іn planning stages with global partners.

OSAT and Packaging

• CG Power (Gujarat) — Large OSAT unit for domestic and export.
• Micron — Advanced memory packaging & testing center.
• Tata OSAT (Assam) — Targeting 48 million chips/day by mid-2025.
• HCL–Foxconn (Uttar Pradesh) — OSAT unit with 36 million units/month by 2027.
  

Chip Design & R&D

• SCL Modernization​ — India’s public chip lab​ іs being upgraded for advanced tape-outs, including space and RISC-V chips.
• Ecosystem​ — 70+ startups, 270+ institutions designing chips for AI, 5G, RF, MEMS, analog, and more.
• International Cooperation​ — US–India initiatives support domestic fabs and design hubs under the CHIPS Act.

Talent Development

Hundreds of Indian engineers are training abroad, especially in Taiwan, to gain next-gen semiconductor skills.

Key Challenges

• High capital costs and supply-chain complexity.
• Continued reliance on imported tools and limited local expertise in advanced nodes.
• Regulatory and execution risks remain.
  

Economic Impact & Outlook

• India’s semiconductor market may grow from $38 billion (2023–24) to over $110 billion by 2030.
• Up to 1 million jobs could be created across the value chain.
• India is positioning itself as a viable alternative to East Asian chip hubs.
  

Conclusion

India​ іs moving from vision​ tо execution. With fabs and OSAT plants underway,​ a growing design ecosystem, and global partnerships, the country​ іs building the foundation for​ a self-reliant semiconductor industry.

Milestones Ahead

• Tata’s first chips expected by late 2025 / early 2026.
• OSAT facilities scaling up between 2025–2027.
• Ongoing R&D and startup growth fueling long-term innovation.
  

Despite challenges, India​ іs rapidly emerging​ as​ a significant player​ іn global chip manufacturing.