On August 15, 2025, Prime Minister Narendra Modi, in his Independence Day speech, announced that India will commence domestic semiconductor chip production by the end of the year. This initiative aims to enhance technological self-reliance and reduce reliance on imported semiconductors. PM highlighted past missed opportunities in India's semiconductor industry, emphasizing the strategic importance of this move amid global demand for chips in sectors like AI, automotive, and wireless communication.
The initiative is backed by significant investments and international partnerships. A key collaboration with Taiwan’s PSMC is set to begin production in 2026 at a facility in Dholera, Gujarat, with a capacity of 50,000 wafers per month. Six projects are currently in various stages of implementation:
- Micron in Sanand, Gujarat
- Tata Electronics and PSMC (Taiwan) in Dholera, Gujarat
- Tata Semiconductor Assembly & Test (TSAT) in Morigaon, Assam
- CG Power, Renesas (Japan), and Stars Microelectronics (Thailand) in Sanand, Gujarat
- Kaynes Semiconductor
- HCL and Foxconn (Taiwan) in Jewar, Uttar Pradesh
Additionally, four new projects have been approved: SiCSem and 3D Glass Solutions Inc. in Odisha, CDIL in Punjab, and ASIP in Andhra Pradesh. These efforts underscore India’s push to strengthen its position in global semiconductor supply chains.
