India is rapidly accelerating its ambition to become a global hub for semiconductor manufacturing, a critical sector for modern technology. Through the ambitious India Semiconductor Mission (ISM), the nation has secured an impressive total investment commitment of over ₹1.6 lakh crore (₹160,000 crore). This substantial investment is spread across 10 vital projects in six different states, marking a pivotal moment in India’s journey towards technological self-sufficiency.

Leading this monumental effort is Gujarat, which has attracted the lion’s share of investment, amounting to a staggering ₹124,933 crore. A flagship project within Gujarat is the joint venture between Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC) and Tata Electronics, valued at an astounding ₹91,526 crore. This large-scale semiconductor fabrication unit is poised to put India firmly on the global chip-making map. Not far behind is Assam, with a significant semiconductor assembly project by Tata Semiconductor Assembly and Test Pvt Ltd, costing ₹27,120 crore. Other states like Uttar Pradesh, Odisha, Andhra Pradesh, and Punjab are also playing crucial roles in this nationwide initiative.

The India Semiconductor Mission initially began with an outlay of ₹76,000 crore, but the enthusiastic response and strategic partnerships have more than doubled the committed investment to reach approximately US$18.23 billion(equivalent to ₹1.6 lakh crore). The government’s proactive approach has been instrumental, with four new projects alone approved on August 12, 2025. These projects, located in Odisha, Punjab, and Andhra Pradesh, collectively represent an investment of around ₹4,600 crore (US$524 million) and are expected to create over 2,000 skilled job opportunities. Experts from leading industry bodies anticipate India’s first domestically produced semiconductor chip to be released by the end of 2025, a testament to the swift progress being made.

The collaborative spirit driving this mission is evident in the diverse range of key semiconductor companies and partnerships involved:

• Tata Electronics Private Limited & Powerchip Semiconductor Manufacturing Corp (PSMC) (Taiwan) – Gujarat (₹91,526 crore project)
• Tata Semiconductor Assembly and Test Pvt Ltd – Assam (₹27,120 crore project)
• SiCSem Private Limited with UK’s Clas-SiC Wafer Fab Ltd. – Odisha (₹2,066 crore SiC semiconductor plant)
• Continental Device India Pvt. Ltd. – Punjab
• 3D Glass Solutions Inc. – Odisha
• ASIP Technologies with South Korea’s APACT Co. Ltd. – Andhra Pradesh
• HCL and Foxconn joint venture – Uttar Pradesh (₹3,700 crore for display manufacturing)
• CG Power in partnership with Renesas Electronics (Japan) and Stars Microelectronics (Thailand) – Gujarat
• Mysuru-based Kaynes Semicon – Gujarat
• Larsen & Toubro plans INR 8.3 billion (₹830 crore) investment in fabless chip design subsidiary

To provide a clearer picture of these pivotal investments, here is a breakdown of key semiconductor projects by state and company:

The market outlook for India’s semiconductor sector is exceptionally positive. From an estimated US$38 billion in 2023, the Indian semiconductor market is projected to grow significantly to US$45–50 billion by 2025, and further to a staggering US$100–110 billion by 2030. Globally, the semiconductor market is expected to exceed US$1 trillion by 2030, presenting a massive opportunity for India to capture a substantial share. These projections, widely cited by industry analysts and government reports, underscore the potential for India’s robust growth in this sector.

Recent developments underscore the momentum of the India Semiconductor Mission. On August 16, 2025, India inaugurated its first advanced 3-nanometer chip design centres in Noida and Bengaluru, paving the way for cutting-edge innovation. Just days earlier, on August 12, 2025, four new semiconductor projects received approval, pushing the total sanctioned projects to ten, with a combined investment commitment of ₹1.6 lakh crore. SiCSem Pvt Ltd is also set to build India’s first commercial compound semiconductor fab in Odisha. Meanwhile, in July 2025, Tata Electronics signed a crucial Memorandum of Understanding with Robert Bosch GmbH, focusing on advanced chip packaging and manufacturing at their Assam and Gujarat facilities. Furthermore, in June 2025, Larsen & Toubro announced an ₹830 crore investment in a fabless chip design subsidiary, strategically targeting a lower-investment segment of the semiconductor value chain.

These initiatives will cater to diverse sectors, including automotive, consumer electronics, telecom, and networking. The strong public-private collaboration and strategic international partnerships are crucial pillars supporting this growth trajectory. As India marches confidently towards becoming a technological powerhouse, the success of the India Semiconductor Mission will be a defining factor in its future economic landscape.

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