India’s semiconductor sector is witnessing significant investment and rapid expansion, driven by government incentives, global partnerships, and domestic initiatives. Below is a comprehensive summary of the key semiconductor investments and projects currently happening in India, along with their relevant details and links to further information.
1. Tata Electronics Semiconductor Fab, Dholera, Gujarat
- Investment: Over INR 910 billion (US$10.44 billion)
- Details: Tata Electronics, in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), is establishing a semiconductor fabrication plant in Dholera’s Special Investment Region. The facility will have a production capacity of 50,000 wafers per month and is expected to create over 20,000 jobs. The Indian government is providing 50% financial support for eligible project costs. Production is expected to begin in 202615.
- Scope: Chips for automotive, computing, communications, and AI sectors.
2. Tata Electronics Expansion and Partnerships
- Additional Fabs: Tata Electronics plans two more semiconductor fabs in Dholera over the next five to seven years, with future partnerships and technology choices subject to market conditions15.
- Tokyo Electron MoU: Tata signed an MoU with Tokyo Electron (TEL) for equipment, services, R&D, and workforce training for facilities in Gujarat and Assam. Investments include INR 910 billion (US$10.84 billion) in Gujarat and INR 270 billion (US$3.21 billion) in Assam15.
3. Foxconn–HCL OSAT Joint Venture
- Investment: Up to INR 4.24 billion (approx. US$50.5 million)
- Details: Foxconn and HCL are setting up an Outsourced Semiconductor Assembly and Testing (OSAT) facility in India. Foxconn will hold 40% equity. The project aims to boost India’s chip packaging and testing capabilities15.
4. Adani Group–Tower Semiconductor Fab, Maharashtra
- Investment: Proposed US$10 billion
- Details: A joint semiconductor fab proposal by Israel’s Tower Semiconductor and India’s Adani Group is under review. The Maharashtra cabinet has approved the establishment of a fab unit in Panvel, near Mumbai15.
5. Larsen & Toubro (L&T) Fabless Chip Company
- Investment: Over US$300 million
- Details: L&T is establishing a fabless chip company in India, targeting the design of 15 products by 2027. The company is seeking government support for chip design incentives15.
6. Modernization of Semiconductor Laboratory (SCL), Mohali
- Investment: US$1 billion earmarked by the government
- Details: Nine bids have been received for the overhaul of the state-owned SCL, with Tata Group, Tower Semiconductor, and Texas Instruments among the bidders. The facility produces chips for strategic and defense purposes15.
7. Samsung Semiconductor India Research (SSIR)
- Details: Samsung has inaugurated a semiconductor R&D facility in Bengaluru, focusing on advanced research and innovation15.
8. Design-Linked Incentive (DLI) Scheme Beneficiaries
- Saankhya Labs: Specializes in wireless communication and semiconductor solutions for broadband, satellite, and broadcast applications.
- Sensesemi Technologies: Developing Systems on Chip (SoC) for IoMT and IoT devices, focusing on smart wearables and medical technology15.
9. Additional Noteworthy Developments
- Foxconn’s Application for Semiconductor Fab: Foxconn has submitted an application to establish a semiconductor fabrication unit in India under the modified scheme for setting up semiconductor fabs15.
- India–EU MoU on Semiconductors: A Memorandum of Understanding has been signed to foster a resilient semiconductor supply chain and promote joint research and innovation15.
- Tata–Powerchip Fab in Dholera: India’s first approved semiconductor fab facility, a Tata and Powerchip Taiwan collaboration, will produce 48 million chips a day at a net investment of INR 270 billion15.
- Tata’s Planned Fab in Dholera: Tata Group is planning another fab unit, and Tower Semiconductor is looking to establish 65 nm and 40 nm production in India15.
10. State-Level Initiatives
- Assam: Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will set up an ATMP (Assembly, Testing, Marking, and Packaging) unit in Morigaon, Assam8.
- Karnataka: HCL is in discussions with the Karnataka government to set up an OSAT facility15.
For more information and continuous updates, refer to:
- India Briefing: Setting Up a Semiconductor Fabrication Plant in India1
- Invest India: Investment Opportunities in Semiconductor & IT Hardware4
- Economic Times: Five approved semiconductor units across India and projects in pipeline8
These investments collectively mark a transformative phase for India’s semiconductor industry, positioning the country as a significant player in the global semiconductor value chain.
