India’s Semiconductor Mission (ISM) has approved five semiconductor units that will receive government subsidies under a program with a total outlay of $9.2 billion. These units are expected to boost India’s semiconductor manufacturing capabilities and create significant employment opportunities.
1. Micron Technology:
– Approved in June 2023 for a unit in Sanand, Gujarat
– Total investment: $2.75 billion ($825 million from Micron, rest from subsidies)
2. Tata Electronics Private Limited (TEPL) with Powerchip Semiconductor Manufacturing Corp (PSMC):
– Approved in February 2024 for a fab in Dholera, Gujarat
– Investment: $11 billion
– Capacity: 50,000 Wafer Starts Per Month
– Focus: High-performance compute chips (28 nm), power management chips for various sectors
– PSMC brings expertise from six semiconductor foundries in Taiwan
3. Tata Semiconductor Assembly and Test Pvt Ltd (TSAT):
– Location: Morigaon, Assam
– Investment: approximately $3.25 billion
– Capacity: 48 million chips tested per day
– Focus: Automotive, EVs, consumer electronics, telecom, mobile phones
4. CG Power with Renesas Electronics Corporation and Stars Microelectronics:
– Location: Sanand, Gujarat
– Investment: $916 million
– Capacity: 15 million chips per day
– Focus: Consumer, industrial, automotive, and power applications
– Leveraging Renesas’ expertise in specialized chips
5. Kaynes Semicon:
– Location: Sanand, Gujarat
– Investment: approximately $398 million (30% from the company)
– Capacity: 6.3 million chips tested per day
– Focus: Power electronics, industrial applications
These five approved projects are expected to generate 20,000 direct advanced technology jobs and about 60,000 indirect jobs.
Projects in the pipeline:
1. Tower Semiconductor with Adani:
– Awaiting formal proposal
– Location: Taloja MIDC, Panvel, Maharashtra
– Proposed investment: ($10 billion)
– Focus: Analog/mixed signals semiconductor manufacturing
– Planned capacity: 40,000 wafers per month (Phase 1), 80,000 wafers per month (Phase 2)
– Expected to create over 5,000 jobs
2. Suchi Semicon:
– Location: Gujarat
– Production to begin in November 2024
– Focus: Advanced semiconductor assembly and testing
– Facility: 30,000 square feet with Class 10k and 100k cleanroom facilities
– Expected to create up to 1,200 jobs
– Collaborating with local universities for workforce development
3. Other potential projects:
– Joint venture between Foxconn Technology Group and HCL Group (applied for Outsourced Semiconductor Assembly and Test or OSAT))
– Joint venture between ASIP and Korea’s APACT Limited (applied for OSAT )
– Tarq Semiconductors (Hiranandani Group) seeking approval for Assembly, Testing, Marking, and Packaging (ATMP) and compound semiconductor facilities
These initiatives demonstrate India’s commitment to developing a robust semiconductor ecosystem. The approved projects cover various aspects of the semiconductor value chain, including fabrication, assembly, testing, marking, and packaging. The focus areas range from memory and storage to specialized chips for automotive, consumer electronics, and industrial applications.
The government’s support through subsidies and the involvement of both domestic and international players highlight the collaborative approach to building India’s semiconductor capabilities. This push is expected to reduce dependency on imports, foster technological innovation, and position India as a significant player in the global semiconductor industry.
Last updated: December 26th, 2025
