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In an effort to decentralize the semiconductor industry and bring development to new regions, Tata Electronics is setting up India’s first greenfield semiconductor assembly and testing facility in
Laid by Prime Minister Narendra Modi in March 2024, the Dholera plant will focus on sectors such as automotive, computing, communications, and AI, with the first batch of semiconductors expected by December 2026. This facility represents India’s push to strengthen its semiconductor manufacturing capabilities and reduce dependence on imports.
3. India’s First Indigenous Semiconductor Assembly and Testing Facility, Morigaon Assam: In an effort to decentralize the semiconductor industry and bring development to new regions, Tata Electronics is setting up India’s first greenfield semiconductor assembly and testing facility in Morigaon, Assam. With an investment of INR 27,000 crore, this facility will create over 27,000 jobs and serve as a critical hub for semiconductor assembly, testing, and packaging.
The plant will focus on wire bond, flip chip, and integrated systems packaging (ISP) technologies, with a capacity to produce 48 million chips daily. Operations are expected to commence by mid-2025, making this facility a cornerstone of India’s semiconductor ambitions in the northeastern region.
4. CG Power’s OSAT Facility, Sanand, Gujarat: The Murugappa Group’s C G Power, in partnership with Renesas Electronics Corporation from Japan and Stars Microelectronics from Thailand, is developing an advanced OSAT facility in Sanand, Gujarat. With a planned investment of INR 7,600 crore over five years, this facility
Laid by Prime Minister Narendra Modi in March 2024, the Dholera plant will focus on sectors such as automotive, computing, communications, and AI, with the first batch of semiconductors expected by December 2026
will cater to industries such as automotive, consumer electronics, and 5G technology.
This facility will produce a range of semiconductor products and is expected to create 5,000 jobs. Over the next three years, the plant aims to scale up production to 1.5 crore units daily, further bolstering India’s semiconductor manufacturing capacity.
5. Kaynes Semicon Plant, Gujarat: In a significant move to expand India’s semiconductor production capabilities, the Union Cabinet approved Kaynes Semicon’s proposal to set up an OSAT unit in Sanand, Gujarat. With an investment of INR 3,307 crore, this facility is set to produce 6.3 million chips daily. The government is offering 50% capital investment support under the ISM’s modified scheme, reinforcing India’s efforts to offer a competitive alternative to China in the global semiconductor landscape.
Inclusion of Youth, Academia and Industry:
Under Modi Govt’s National Semiconductor Mission, Currently, 113 universities, academic institutions, and research organizations across India have incorporated semiconductor-focused courses, tailored in collaboration with industry leaders. These programs aim to align academic knowledge with real-world industry needs, ensuring that graduates are ready to contribute to the semiconductor landscape.
For instance, the LAM Research’s Semiverse program, running in 74 universities, has trained over 2,600 students this year alone. This initiative is expected to expand massively in the coming years. In another key development, AMD’s Global Design Center in Bengaluru has opened, currently employing 5,000 engineers, with further expansions planned. These academic and industry linkages are setting the stage for India to become a major player in global semiconductor design and manufacturing.
India’s existing strength in semiconductor design is another critical pillar of the Semiconductor Mission. The country already boasts over 300,000 engineers working in chip design across various companies, with 52,000 of them engaged in leading-edge, complex chip designs. This design capability has drawn international interest, and the government’s support for the sector is evident. Thirteen design ecosystem partners have received financial assistance through the program, with several attracting venture capital interest, signaling strong growth potential in this area.
Recognizing the strategic importance of semiconductors, the Modi government has decided to enhance its chip manufacturing incentive policy, increasing the funding outlay for the second phase of the ISM to $15 billion, up from $10 billion in the first phase. This expanded financial support is crucial for ensuring the successful establishment of these critical facilities and accelerating India’s emergence as a global semiconductor hub.
Reshaping the Nation’s Influence on the Global Stage:
India’s burgeoning semiconductor boom is set to redefine its geopolitical standing by enhancing strategic autonomy through reduced dependence on foreign imports and positioning the nation as a key player in the global semiconductor landscape. By fostering collaborations with major global powers like the US and Japan, India strengthens its national security, ensuring access to critical technologies for defense and infrastructure. This expansion allows India to emerge as a global supply chain
India’s existing strength in semiconductor design is another critical pillar of the Semiconductor Mission. The country already boasts over 300,000 engineers working in chip design across various companies, with 52,000 of them engaged in leading-edge, complex chip designs
alternative, diminishing China’s dominance in the semiconductor space. With increased investments and advanced manufacturing capabilities, India is attracting strategic investments, further bolstering its geopolitical influence. This growth enables the nation to participate more assertively in global forums such as the WTO and G20, leveraging its technological prowess. As part of the broader Indo-Pacific strategy, India’s semiconductor sector fosters closer ties with allied nations, promoting economic diplomacy. Through semiconductor diplomacy, India is poised to shape trade agreements and partnerships favorable to its long-term strategic goals.
To sum up, Modi’s National Semiconductor Mission stands as a pivotal initiative in India’s technological and geopolitical landscape. By spearheading this mission, the Indian government is not only addressing the critical need for domestic semiconductor manufacturing but also reinforcing the country’s strategic autonomy and global influence. The mission’s emphasis on building a comprehensive semiconductor ecosystem—including fabrication plants, assembly units, and research facilities—positions India as a key player in the global supply chain, enhancing national security and economic stability. It fosters strategic partnerships with major economies, strengthens India’s role in international forums, and counters the dominance of competitors like China. Ultimately, Modi’s National Semiconductor Mission is instrumental in transforming India into a global semiconductor hub, driving technological innovation, and securing its position as a formidable force in the global economy.
(The Writer is MP, Rajya Sabha & National General Secretary of BJP)