Indian Government Offers Favorable Ecosystem for Semiconductor Companies

Global chip companies facing financial challenges are seeking partnerships with Indian firms to establish semiconductor manufacturing facilities. India's robust government incentives and vast domestic market make it an attractive destination. Companies like Sharp and Onsemi are actively scouting for partners in India, which offers a growing market and large talent pool. The India Semiconductor Mission provides significant fiscal support to companies investing in silicon semiconductor fabs and other related technologies.

Global chip companies, facing financial challenges and seeking to expand their manufacturing footprint, are increasingly turning to partnerships with Indian firms to establish semiconductor manufacturing facilities. India's robust government incentives, vast domestic market, and large talent pool make it an attractive destination for these partnerships.

One notable example is the recent channel partner agreement between Cyient Semiconductors and GlobalFoundries. Under this agreement, Cyient Semiconductors will resell GlobalFoundries' semiconductor manufacturing services and technologies, providing companies with access to advanced process technologies and manufacturing capabilities [1]. This partnership aligns with GlobalFoundries' strategic focus on high-performance, energy-efficient solutions and its deepened partnership with Apple [2].

The India Semiconductor Mission (ISM) has been instrumental in facilitating these partnerships. The ISM provides significant fiscal support to companies investing in silicon semiconductor fabs and related technologies. In August 2025, the ISM approved four additional semiconductor manufacturing projects, raising the total number of sanctioned projects to 10. These projects reflect an investment commitment of approximately INR 1.60 trillion (US$18.23 billion) and are expected to generate employment for over 2,000 skilled professionals [2].

The latest approvals under the ISM mark a major leap for India's semiconductor ecosystem. These projects are expected to reduce import dependency and position the country as a competitive player in the global advanced electronics manufacturing landscape. By expanding both manufacturing and design capacities across multiple states, India is positioning itself as a competitive player in the global semiconductor value chain [2].

Companies like Sharp and Onsemi are actively scouting for partners in India. These firms are drawn to the country's growing market and large talent pool, which offer significant opportunities for innovation and high-value job creation. The ISM's support and the domestic market's potential make India an attractive destination for global chip companies seeking to establish semiconductor manufacturing facilities.

References:
[1] https://manufacturing.economictimes.indiatimes.com/news/hi-tech/cyient-semiconductors-ties-up-with-globalfoundries-to-facilitate-chip-manufacturing-services/123180043
[2] https://www.india-briefing.com/news/india-4-new-semiconductor-plants-approved-2025-39180.html/
[3] https://simplywall.st/stocks/us/semiconductors/nasdaq-gfs/globalfoundries/news/is-globalfoundries-gfs-expanded-apple-partnership-redefining