India's Chip Sector Grows: 10 Approved Units, Rs 1.6 Lakh Crore Investments

The India Semiconductor Mission (ISM) has approved ten semiconductor units across the country, with cumulative investments of around Rs 1.6 lakh crore in six states. These projects are expected to receive central and state government subsidies under the programme for the development of semiconductors and display manufacturing ecosystem in India.

The India Semiconductor Mission (ISM), established under the Ministry of Electronics and Information Technology (MeitY), has approved ten semiconductor units across the country, with cumulative investments of around Rs 1.6 lakh crore. These projects are expected to receive central and state government subsidies under the programme for the development of semiconductors and display manufacturing ecosystem in India [1].

The ISM, launched in 2021, has been instrumental in attracting significant investments in India's semiconductor sector. The approved projects range from large-scale fabrication plants (fabs) to smaller outsourced semiconductor assembly and test (OSAT) facilities. Notable investments include Tata Electronics Private Limited's $10 billion fab and Micron Technology's $2.75 billion assembly, testing, marking, and packaging (ATMP) plant [1].

The projects are spread across six states: Gujarat, Uttar Pradesh, Assam, Andhra Pradesh, Odisha, and Punjab. These states have been competing to offer the most attractive incentive schemes to attract semiconductor investments. Gujarat, for instance, has been a frontrunner due to its dedicated semiconductor policy, proximity to major ports, and swift project execution [1].

The ISM's success is also attributed to India's strategic approach of soliciting interest from key anchor firms, often American, to move to India. This has the advantage of not just the anchor firm but also its larger supplier ecosystem moving as well. Simultaneously, India has been encouraging its domestic firms to invest in nascent semiconductor hubs and clusters [1].

The ISM's efforts are gradually paying off, with India benefiting from larger shifts in global commerce. Data from the World Bank revealed that India was among the top six economies that benefited from U.S. trade policy measures in terms of supply chain onshoring [1].

The ISM's success story is a testament to India's strategic approach to developing its semiconductor ecosystem. With ten approved units and cumulative investments of Rs 1.6 lakh crore, India is well on its way to becoming a significant player in the global semiconductor market.

References:
[1] https://carnegieendowment.org/research/2025/08/indias-semiconductor-mission-the-story-so-far?lang=en