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India Approves Over $19 Billion in Semiconductor Investments to Build Global Chip Manufacturing Hub

India’s ambition to become a global semiconductor manufacturing center is growing fast as the government has approved more than $19 billion in semiconductor and electronics manufacturing investments in various states. With the help of the India Semiconductor Mission (ISM) and attractive production-linked incentives (PLI), these projects will strengthen the country’s semiconductor ecosystem, reduce import dependence, and put India at the front of the world chip supply chain.

Micron Technology is leading the investment wave as it is investing about $2.60 billion in a semiconductor assembly and testing facility in Sanand, Gujarat. The plant will produce memory packaging products for the international markets and is one of the largest investments in semiconductors in India by an international technology company.

Another landmark project is coming from Tata Electronics with Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) and the joint venture will invest around $10.52 billion to construct the first semiconductor fabrication (fab) factory in Dholera, Gujarat. The factory will be used to build chips for automotive, artificial intelligence, consumer electronics, and industrial applications.

Tata Group is also investing $3.12 billion to build a semiconductor assembly and testing facility in Morigaon, Assam, further expanding India's chip manufacturing capabilities beyond Gujarat. Tata's projects represent some of the largest investments in India's semiconductor journey.

A number of other companies are also approved in the semiconductor program. CG Power, working with Renesas Electronics and Stars Microelectronics, is investing $879 million in Sanand, Gujarat. Kaynes Semiconductor will invest $383 million and Crystal Matrix Limited (CML) will invest $355 million in Gujarat. Suchi Semicon Pvt. Ltd. is investing $101 million in Surat.

The semiconductor ecosystem is also expanding in other states. HCL–Foxconn JV is investing $428 million in Jewar, Uttar Pradesh. SicSem Private Limited and 3D Glass Solutions Inc. have announced investments of $239 million and $224 million, respectively, in Bhubaneswar, Odisha. ASIP is investing $54 million in Andhra Pradesh and CDIL (Continental Device India Ltd.) is investing $14 million in Mohali, Punjab. Sahasra Semiconductors has also got approval for a $17 million project in Bhiwadi, Rajasthan.

These investments span the entire semiconductor value chain from chip fabrication, assembly, testing, packaging (ATMP/OSAT), specialty materials, and semiconductor components. This diverse approach is expected to create a comprehensive domestic ecosystem that supports both manufacturing and innovation.

Industry experts believe these projects will generate thousands of high-skilled jobs, attract global suppliers, and encourage research and development in advanced semiconductor technologies. They will also enhance India’s position in key areas such as electric vehicles, telecommunications, consumer electronics, defense, and artificial intelligence.

With over $19 billion of approved investments spread across Gujarat, Assam, Uttar Pradesh, Odisha, Punjab, Andhra Pradesh, and Rajasthan, India is well on its way to becoming a global semiconductor manufacturing hub. These projects will certainly help to drive strong technological self-reliance and to increase India’s global electronics industry status from regulatory approval till production.

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