India's semiconductor revolution and chip manufacturing initiatives

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International Collaborations: To strengthen the semiconductor supply chain, India has entered into Memorandums of Understanding (MoUs) with countries like the USA, Japan, and the European Union. These collaborations focus on technology sharing, talent development, and joint research initiatives.

India's strategic initiatives in semiconductor manufacturing signify a new era of technological advancement and economic growth. By leveraging policy support, infrastructure development, and international partnerships, the country is poised to become a key player in the global semiconductor industry.

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India's Semiconductor Revolution and Chip Manufacturing Initiatives

Introduction: India is embarking on a transformative journey to become a global hub for semiconductor manufacturing. With strategic investments, policy reforms, and international collaborations, the nation aims to reduce dependency on imports and establish a robust domestic semiconductor ecosystem.

India Semiconductor Mission (ISM): Launched in December 2021, the ISM is a pivotal initiative by the Government of India to bolster semiconductor and display manufacturing. With an allocation of ₹76,000 crore, the mission focuses on fostering a sustainable semiconductor ecosystem, promoting research and development, and encouraging investments in fabrication units.

Key Projects and Investments:

• HCL-Foxconn Joint Venture: Approved in May 2025, this ₹3,706 crore project in Jewar, Uttar Pradesh, aims to produce 36 million display driver chips monthly. The facility is expected to commence operations by 2027, generating approximately 2,000 jobs.
• Tata Electronics: With an investment of ₹27,000 crore, Tata is establishing a semiconductor assembly and test facility in Jagiroad, Assam. The plant is projected to produce 4.83 crore chips daily and create over 25,000 jobs.
• Micron Technology: Micron's ₹22,500 crore chip packaging plant in Sanand, Gujarat, is set to enhance India's capabilities in semiconductor assembly and testing, contributing significantly to the domestic supply chain.

Government Incentives and Policies: The Indian government has introduced several incentives to attract investments in the semiconductor sector. These include:

• Production Linked Incentive (PLI) schemes offering financial support to eligible companies.
• Capital expenditure subsidies covering up to 50% of project costs for semiconductor fabs and ATMP units.
• Modernization of existing facilities like the Semi-Conductor Laboratory in Mohali with a $2 billion investment to enhance R&D capabilities.

Educational and Research Initiatives: Establishing the Bharat Semiconductor Research Centre at IIT Madras is a significant step towards fostering innovation and developing skilled manpower in the semiconductor domain.

Future Outlook: With these concerted efforts, India aims to achieve a semiconductor market size of $110 billion by 2030, capturing 10% of the global market share. The focus remains on building a resilient, self-reliant semiconductor ecosystem that can cater to domestic needs and export demands.

Stay tuned for more updates on India's technological advancements.