New Delhi: India may not yet have advanced semiconductor fabs, but its broader chip-making ambitions are gathering momentum with a strategic focus on mature-node manufacturing in the 28nm–65nm range—targeting sectors such as automotive, telecom, and industrial electronics.
A report by Bastion Research notes that, unlike the global race for cutting-edge nodes, India is positioning itself to fill a vital gap in the global supply chain by producing essential, widely used chips. “While there is little tangible progress on fab construction today, India’s focus on mature nodes is a smart move, given the vast demand in industries like automotive, telecom, and industrial electronics,” the report states, adding that this mirrors Taiwan and South Korea’s semiconductor strategies in the 1970s–1990s.
The study also highlights India’s fast-evolving role in system integration within the semiconductor value chain. With a deep talent pool and a strong ecosystem, India is delivering world-class integration services for automotive electronics, telecommunications, consumer devices, and medical technologies—matching global standards in both capability and quality.
India’s prospects are further boosted by the China +1 strategy, as global companies diversify supply chains and seek alternatives to China. This shift is fueling India’s growth as a reliable, cost-effective partner in the semiconductor sector.
Launched in 2021, the Semicon India Programme (also known as Indian Semiconductor Mission 1.0) earmarked ₹76,000 crore in incentives to attract global manufacturers, establish fabs and packaging units (OSAT & ATMP), and develop a local supply chain. The initial focus remains on mature-node fabs rather than cutting-edge nodes like 5nm or 3nm, which are dominated by TSMC and Samsung.
Earlier this month, the Centre approved four new semiconductor manufacturing projects worth ₹4,600 crore in Odisha, Andhra Pradesh, and Punjab, bringing the ISM portfolio to 10 projects across six states with cumulative investments of ₹1.6 lakh crore.
On Independence Day, Prime Minister Narendra Modi announced that made-in-India semiconductor chips would hit the market by year-end. India has so far cleared six semiconductor plants, including four in Gujarat—Tata Electronics-PSMC fab, CG Power-Renesas-Stars Microelectronics ATMP, Micron Technology’s ATMP, and Kaynes Semicon ATMP—plus the Tata Semiconductor Assembly and Test (TSAT) Unit in Assam, and an upcoming HCL Group–Foxconn unit near Jewar Airport in Uttar Pradesh.
