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Stay updated on India's semiconductor industry journey, including investments, policies, and manufacturing progress. Get the latest news, expert insights, and curated links on India's growing role in the global chip supply chain!
(ONLY PROJECTS WHICH HAVE RECEIVED FINAL APPROVAL FROM THE CENTRAL GOVERNMENT HAVE BEEN LISTED AND DISCUSSED BELOW.)
Relevant News Articles
Relevant News Articles
A Collection of the Best Articles
A Collection of the Best Articles
Observer Research Foundation 4th Apr 2025
Budget 2025: Analysis
Budget 2025: Analysis
The Union Budget 2025-26, presented on 1st Feb 2025, did not clearly mention new incentives or benefits specifically tailored for India's semiconductor industry. However, over the last week the Government of India has clarified what it entails specifically for the semiconductor industry:
1. Increased Allocation for Semiconductor Initiatives:
The government has earmarked ₹7,000 crore under the Ministry of Electronics and Information Technology (MeitY) specifically for semiconductor-related projects. This marks a rise from the previous allocation of ₹6,903 crore, underscoring the government's commitment to bolstering the semiconductor sector. https://analyticsindiamag.com/ai-news-updates/budget-2025-govt-earmarks-%E2%82%B97000-crore-for-semiconductor-industry/
2. Enhanced Production-Linked Incentive (PLI) Scheme:
The PLI scheme has been expanded to further support semiconductor manufacturing and design. This expansion aims to attract global semiconductor firms to establish operations in India, thereby reducing reliance on imports and strengthening the domestic supply chain.
3. Emphasis on Research and Development (R&D) Support:
The budget places a significant focus on R&D within the semiconductor field, allocating substantial funds to foster technological advancements and encourage collaboration between industry and academia. This initiative is designed to support the development of cutting-edge semiconductor technologies. https://www.voicendata.com/opinion/union-budget-2025-26-industry-leaders-react-to-key-announcements-8689521
4. Development of a Skilled Workforce::
Recognizing the need for specialized talent in the semiconductor industry, the budget introduces initiatives aimed at education and training programs. These programs are intended to equip the workforce with the necessary skills for semiconductor manufacturing and design, ensuring a steady pipeline of qualified professionals. https://www.voicendata.com/opinion/union-budget-2025-26-industry-leaders-react-to-key-announcements-8689521
5. Infrastructure Development:
The budget emphasizes the creation of robust infrastructure to support semiconductor manufacturing, including the establishment of fabrication plants (fabs) and specialized industrial clusters. This development is crucial for providing the necessary facilities and ecosystem for semiconductor companies to thrive. https://www.voicendata.com/opinion/union-budget-2025-26-industry-leaders-react-to-key-announcements-8689521
SUMMARY 2024
SUMMARY 2024
As we wait for the 2025 Budget of India to be announced, let's take a quick overview of the efforts of 2024......
In 2024, India made significant strides in establishing a robust semiconductor industry, aligning with the government's vision to position the country as a global hub for chip manufacturing.
Key Developments:
Inauguration of Semiconductor Fabrication Facilities: The government approved the establishment of the first semiconductor fabrication plant in Dholera, Gujarat. Additionally, a major facility in Morigaon, Assam, with an investment of ₹27,000 crore, is expected to generate 15,000 direct jobs and 11,000 to 13,000 indirect jobs. https://www.newindianexpress.com/business/2024/Dec/26/2024-landmark-year-for-semiconductor-industry-in-india
Substantial Investments: The government announced commitments exceeding ₹1.5 lakh crore in the semiconductor sector, emphasizing the importance of supply chain resilience and aiming for Indian-made chips in devices globally.
Global Collaborations: India hosted SEMICON India 2024 in Greater Noida, Uttar Pradesh, under the theme 'Shaping the Semiconductor Future.' The event showcased India's semiconductor strategy and attracted top leadership from global semiconductor giants. (Industry sources say that, for SEMICON India 2025, the SEMI organization is pulling out all stops and contacting their global community to ensure a grander event!)
https://pib.gov.in/PressReleasePage.aspx?PRID=2053675
Research and Development Initiatives: NXP Semiconductors announced plans to invest over $1 billion to double its R&D efforts in India, aligning with the country's ambition to become a significant player in the semiconductor industry.
Strategic Partnerships: Analog Devices and Tata Group entered discussions to manufacture semiconductor products in India, with Tata Electronics planning to invest $14 billion to establish the country's first semiconductor fabrication facility in Gujarat and a chip-assembly and testing facility in Assam.
These initiatives underscore India's commitment to developing a self-reliant semiconductor ecosystem, reducing dependence on imports, and enhancing its position in the global semiconductor value chain. However, in order keep the momentum, it is imperative that budget 2025 has further incentives especially to boost the support industries within the semiconductor domain.
FRONT END PROJECTS
FRONT END PROJECTS
First India fab, announced 29th Feb 2024: Tata Electronics and PSMC, Taiwan
Operational by end of 2026
Will be capable of 28-, 40-, 55-, and 110-nanometer chip production, with a capacity of 50,000 wafers per month. This will be in Dholera, Gujarat. Investment in this fab will be about $ 11 Billion.
Far from the cutting edge, these technology nodes nevertheless are used in the bulk of chipmaking, with 28 nm being the most advanced node using planar CMOS transistors instead of the more advanced FinFET devices.
Segments covered include high performance compute chips with 28 nm technology, power management chips.
BACK END PROJECTS
BACK END PROJECTS
Micron’s DRAM and NAND assembly and test facility.
Operational by end of 2025
Will be coming up in Sanand, Gujarat. Investment of about $2.75 billion over two phases. They will focus on transforming wafers into ball-grid array (BGA) integrated circuit packages, memory modules, and solid-state drives. The new 1.4 million-square-foot facility will have 500,000 square feet of clean room space, and this facility will be operational by the end of 2024. Micron will ramp up capacity gradually over time in line with global demand trends. Phase two of the project will be initiated in the second half of the decade.
January 2025 Update: 60% work completed. https://www.business-standard.com/industry/news/micron-semiconductor-facility-india-jobs-2025-125012801142_1.html
Expected to be handed over to Micron between September-December 2025.
Semiconductor ATMP unit in Assam
Operational by early 2026
Tata Semiconductor Assembly and Test Pvt Ltd ("TSAT") will set up a semiconductor unit in Morigaon, Assam. This unit will be set up with an investment of $ 3.2 Billion. TSAT semiconductor is developing indigenous advanced semiconductor packaging technologies including flip chip and ISIP (integrated system in package) technologies. Capacity is 48 million per day.
Semiconductor ATMP unit for specialized chips
Operational by 2027
CG Power, in partnership with Renesas Electronics Corporation, Japan and Stars Microelectronics, Thailand will set up a semiconductor unit in Sanand, Gujarat. This unit will be set up with an investment of about $ 1 Billion. The unit will manufacture chips for consumer, industrial, automotive and power applications and will have a capacity of 15 million per day.
Semiconductor ATMP unit for specialized chips
Operational by 2027
Kaynes Semicon, will set up a semiconductor unit in Sanand, Gujarat. Their initial plans for a unit in Tamil Nadu were scuppered by ISM. This unit will be set up with an investment of about $ 413 Million. The unit will manufacture chips for the domestic (30%) as well as the international market (70%) and will have a capacity of 6 million per day. They plan to have about 13 chip assembly and test lines.
Various Players in the Indian Semi Market
Various Players in the Indian Semi Market
Chip Design and R&D
Chip Design and R&D
HCL Technologies (including Sankalp Semiconductor): Focuses on semiconductor design services, ASIC, SoC, and system-level design, serving industries like automotive, IoT, and telecommunications
Tech Mahindra: Provides semiconductor design and verification services, along with embedded solutions for IoT and automotive sectors.
TCS (Tata Consultancy Services): Offers chip design and validation services, emphasizing AI and data-driven solutions
L&T Semiconductor Technologies: Provides comprehensive semiconductor engineering services, focusing on design, verification, and embedded systems.
Wafer Fabrication
Wafer Fabrication
TATA Electronics has been confirmed to be the first Indian player in wafer fabrication in collaboration of PSMC of Taiwan. There have been other proposals floating around but are yet to be confirmed.
Pre-Silicon Validation
Pre-Silicon Validation
Pre-silicon validation is a critical step in the semiconductor design lifecycle, involving the simulation and verification of a chip design before it is manufactured. This process ensures that the design meets its functional and performance specifications, reducing errors and costly rework in later stages. In India, several companies are active in pre-silicon validation, leveraging advanced tools and expertise:
HCL Technologies: Provides comprehensive pre-silicon validation services, including functional verification, emulation, and performance modeling. Expertise in ASIC and SoC designs, supporting industries like automotive, telecommunications, and IoT.
Infosys: Provides expertise in IC design and validation, including hardware-software co-design and verification. This ensures efficient design and functional reliability before manufacturing begins.
TCS (Tata Consultancy Services): Engaged in pre-silicon validation, focusing on functional and formal verification for complex ICs. Offers validation solutions for AI, automotive, and networking applications
Tech Mahindra: Specializes in semiconductor pre-silicon verification, including simulation, regression testing, and design-for-testability (DFT). Partners with global semiconductor firms for verification projects
L&T Semiconductor Technologies: Provides services in design verification, including pre-silicon validation for VLSI designs. Expertise in testbench development, simulation, and hardware emulation
MosChip Technologies: Focuses on pre-silicon validation, offering verification IPs, functional modeling, and simulation frameworks. Serves clients in industries such as IoT, automotive, and telecommunications
Wipro: Offers end-to-end semiconductor solutions, including pre-silicon validation for ASIC and FPGA designs. Specializes in verification methodologies like UVM (Universal Verification Methodology)
Tessolve: Engaged in pre-silicon validation, emphasizing system-level verification and functional testing. Expertise in integrating pre-silicon and post-silicon validation for faster time-to-market
Wafer Packaging (thinning, dicing, packaging, assembly & testing)
Wafer Packaging (thinning, dicing, packaging, assembly & testing)
The bulk of the new investments in the industry in India focus on this field. (It is, however, to be noted that many processes, such as wafer-level micro bumping, still have no players in India.)
Micron Technology: Setting up an assembly and test facility for DRAM and NAND in Gujarat
Tessolve: Specializes in ATMP services, IC testing, and engineering solutions for semiconductor products
Tata Group: Building an advanced ATMP plant in Assam with a focus on modern packaging technologies like flip-chip
Foxconn: Invested in semiconductor manufacturing in India, with plans to expand assembly and packaging capabilities.
Pegatron: Active in the electronics assembly space and reportedly exploring semiconductor testing opportunities
CG Power, Renesas, and Stars Microelectronics: Collaborating on an OSAT facility in Gujarat for legacy and advanced packaging.
Surface Mounting (on PCB)
Surface Mounting (on PCB)
No players in India yet.
Component Level Assembly
Component Level Assembly
Foxconn, Pegatron
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