The Government has been undertaking concerted efforts towards the development of a trusted and sustainable semiconductor ecosystem in the country through various strategic initiatives and policy interventions.

But why are semiconductors in trend? What is its usage? Why has the attention been focused on it? Semiconductors are the backbone of modern electronics, powering computers, mobile devices, telecommunications, automobiles, defence systems and artificial intelligence. India is steadily emerging as a global semiconductor hub. Large-scale investments, expanding manufacturing capacity, and platforms such as SEMICON India 2025 reflect growing global confidence in India's semiconductor journey.

It all started in December 2021 with the approval of the Union Cabinet for India Semiconductor Mission 1.0. Initially, the mission is supported by an incentive framework of Rs 76,000 crore, offering fiscal support of up to 50 per cent for silicon fabs, compound semiconductor facilities, assembly and testing units, and chip design.

As of December 2025, 10 projects with a total investment of Rs 1.60 lakh crore have been approved across 6 states. These include silicon fabrication units, silicon carbide fabs, advanced and memory packaging facilities, and specialised assembly and testing infrastructure. Together, they are shaping a resilient domestic semiconductor ecosystem.

According to the Ministry of Electronics & IT, as stated in a press release published on May 26, 2026, Under the Semicon India Programme, so far, 12 Fab/Packaging projects have been approved along with 24 semiconductors design projects,

As per a report in NDTV Profit, the Finance Ministry's Expenditure Finance Committee (EFC) has approved an outlay of Rs 1.25 lakh crore for the India Semiconductor Mission (ISM) 2.0, paving the way for the next phase of the country's semiconductor manufacturing push. The proposal was cleared by the committee last week and will now be sent to the Union Cabinet for final approval.

The proposed budget represents a considerable increase from Rs 76000 crores under ISM 1.0, under which the government approved 10 semiconductor facilities across chip fabrication, assembly, and design. This new extended scheme is likely to support a broader supplier ecosystem (i.e., Industrial Gases, Specialty Chemicals, Capital Equipment, MSME'S and/or Ancillary Suppliers), thus making the entire Indian semiconductor supplier chain stronger.

Approved Semiconductor Manufacturing Projects

• Micron Technology Inc. is establishing a semiconductor manufacturing facility in Gujarat with an investment of Rs. 22,516 crore. Micron's facility in India will enable assembly and test manufacturing for both DRAM and NAND products and address demand from domestic and international markets. The production capacity is around 14 million units per week.
• Tata Electronics Private Limited (TEPL) is establishing a semiconductor manufacturing facility in Gujarat with an investment of Rs. 91,526 crore. The fab facility will be set up in technology partnership with PSMC, Taiwan. The production capacity of the project would be around **50,000 wafer starts per month (WSPM).
• Tata Electronics Private Limited (TEPL) is establishing a semiconductor manufacturing facility in Assam with an investment of Rs. 27,120 crore. The facility will use indigenous semiconductor packaging technologies with a production capacity of 48 million units per day.
• CG Power and Industrial Solutions Limited is establishing a semiconductor manufacturing facility in Gujarat with an investment of Rs. 7,584 crore. The facility will be set up as a joint venture partnership with **Renesas Electronics America Inc., USA, and STARS Microelectronics, Thailand.
• Kaynes Technology India Limited (KTIL) is establishing a semiconductor manufacturing facility in Gujarat with an investment of Rs. 3,307 crore. The facility will have the capacity to produce more than 6.33 million chips per day.
• Vama Sundari Investments (Delhi) Private Limited (VSIPL)is establishing a semiconductor manufacturing facility in Uttar Pradesh with an investment of Rs. 3,706 crore. The production capacity would be around 20,000 wafers per month / 36 million chips per month.
• 3D Glass Solutions Inc. (3DGS) is establishing a semiconductor manufacturing facility in Odisha with an investment of Rs. 1,943 crore. The proposed installed capacity for glass panel substrate production, assembly and Heterogeneous Integration (3DHI) is around 5,800 panels per month, 4.20 million units per month, and 1,100 units per month, respectively.
• SiCSem Private Limited is establishing a semiconductor manufacturing facility in Odisha with an investment of Rs. 2,066 crore. The production capacity is 5,000 wafers per month, and the packaging capacity is 8 million units per month.
• Continental Device India Private Limited (CDIL) is expanding its semiconductor manufacturing facility in Punjab with an investment of Rs. 117 crore. The facility will manufacture high-power discrete semiconductor devices. The production capacity will be around 158.38 million units per annum.
• Advanced System in Package Technologies Private Limited (ASIP) is establishing a semiconductor manufacturing facility in Andhra Pradesh with an investment of Rs. 480 crore. The production capacity of the facility would be around 96 million units per annum.

Projected Targets under ISM for 2026-27: