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India’s Semiconductor Bets Target Domestic Demand And Imports
Semiconductors are tiny parts used in many electronic devices.
Indian companies are spending billions of dollars to make more of these parts inside India.
Tata Electronics is building a large chip factory in Gujarat and a packaging plant in Assam.
CG Power and Kaynes have already started making or packaging chips in Gujarat.
HCL Technologies and Foxconn are building another facility in Uttar Pradesh.
A startup called Agnit Semiconductors is working on gallium-nitride products for wireless and power uses.
Companies hope local production will meet India’s growing demand and reduce the need to buy chips from other countries.
The projects are risky, but technology partnerships and supply agreements may help them succeed.
Indian companies have committed about $20 billion to semiconductor projects with government support.
Tata Electronics is investing Rs 1.18 lakh crore in a Gujarat fab and Assam packaging facility.
CG Power began commercial production at its Sanand packaging facility in July, with expansion planned by 2027-28.
Kaynes started production in March and is considering a roughly $1-billion advanced-packaging project.
HCL Technologies, Foxconn, and startup Agnit Semiconductors are also developing chip-related operations.
- Who
- Tata Electronics, CG Power, Kaynes, HCL Technologies, Foxconn, and Agnit Semiconductors are among the companies involved.
- What
- Indian companies are investing in semiconductor fabs, packaging facilities, wafers, and chip products.
- Where
- Projects are located in Gujarat, Assam, and Uttar Pradesh, with Agnit Semiconductors based in Bengaluru.
- When
- Commercial production began at CG Power’s facility in July and Kaynes’ facility in March; several projects are expected to expand through 2028.
- Why
- The companies aim to capture India’s growing semiconductor demand and reduce reliance on imports.
Key facts
- Total commitments
- About $20 billion, including government support
- Forecast domestic demand
- $110 billion by fiscal year 2030 and more than $200 billion by fiscal year 2035
- Past import bill
- Semiconductor imports totaled about $150 billion from fiscal year 2017 through fiscal year 2025
- Tata Electronics investment
- Rs 1.18 lakh crore across a Gujarat fab and Assam packaging facility
- CG Power capacity
- Planned expansion from 0.5 million to 15 million packaged units per day
- Kaynes capacity
- The Sanand facility is designed to scale to about 6 million units per day
- HCL-Foxconn timeline
- Display driver chips from the Jewar facility are expected by early 2028
Sources
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