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!

AND NOW: Technical Topics.... 

(ONLY PROJECTS WHICH HAVE RECEIVED FINAL APPROVAL FROM THE CENTRAL GOVERNMENT HAVE BEEN LISTED AND DISCUSSED BELOW.)

News Flash: Summary of BUDGET 2026 now available! See below....

Relevant News Articles

A Collection of the Best Articles

CNBC 22nd Sept 2025

Carnegie India 25th Aug 2025

TOI 17th Jun 2025

The Telegraph India 6th Jun 2025

NASSCOM India 22nd Apr 2025

Observer Research Foundation 4th Apr 2025

Economic Times 25th Mar 2025

Business Standard 22nd Dec 2024 

Article in the Nature Magazine 20th Sept 2024

Various Players in the Indian Semi Market

Chip Design and R&D

INTEL: Has one of its largest design centers in Bengaluru.

AMD: Has large R&D and engineering facilities in Bengaluru and Hyderabad.

Qualcomm: Multiple large design centers, Bengaluru, Hyderabad and Chennai.

NVIDIA: Major R&D center in Bengaluru and Pune, focused on GPUs, AI and networking.

Synopsys & Cadence: Significant R&D and support centers in NOIDA, Bengaluru, Hyderabad.

Micron: Strong design team in Hyderabad working on memory and SSD controllers.

HCL Technologies (including Sankalp Semiconductor): Focuses on semiconductor design services, ASIC, SoC, and system-level design, serving industries like automotive, IoT, and telecommunications​

MediaTek, Broadcom, Marvell, IBM, Samsung: Have substantial design and R&D presence.

Saankhya Labs: Designs satellite communication and broadcast chipsets.

Signalchip: Developed India's first indigenously designed 4G/LTE and 5G NR modems.

InCore Semiconductors: Develops RISC-V based CPU cores and platform solutions.

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

TATA Electronics has been confirmed to be the first Indian player in wafer fabrication in collaboration of PSMC of Taiwan. 

SiCSem Private Limited, in collaboration with UK-based Clas-SiC Wafer Fab Ltd., will be setting up a compound semiconductor fabrication facility focused on Silicon Carbide devices.

SITAR (BEL): A government-owned unit runs a small-scale fab for strategic and defense applications (not commercial).

There have been other proposals floating around but are yet to be confirmed.

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:

As in Design & Engg category: Same MNCs (Intel, AMD, Qualcomm, NVIDIA) and EDA giants (Synopsys, Cadence) have major teams in India doing this work.

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)

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​

Tata Electronics (TEPL): Building an advanced ATMP plant in Assam with a focus on modern packaging technologies like flip-chip​.

CG Power, Renesas, and Stars Microelectronics: Collaborating on an OSAT facility in Gujarat for legacy and advanced packaging.

HCL, CDIL, ASIP, and Kaynes: Each is building an OSAT facility in India.

EXISTING PLAYERS:

Tessolve: Specializes in ATMP services, IC testing, and engineering solutions for semiconductor products​

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​

Surface Mounting (on PCB)

Multiple small players.

Component Level Assembly

Foxconn

Pegatron

Budget 2026: Analysis

Here’s a comprehensive summary of all the key semiconductor-related announcements from India’s Union Budget 2026-27 (presented on 1 Feb 2026 by Finance Minister Nirmala Sitharaman) that impact semiconductors, electronics manufacturing, supply chains, and the broader chip ecosystem. We will talk about what Budget 2026 + ISM 2.0 actually implies for each layer of the Indian semiconductor ecosystem, and will flag who really benefits vs who just gets signaling:

1. Chip Design / Fabless / IP Companies 

(Indian startups, MNC captive design centres, EDA ecosystem) 

What the budget does

• ISM 2.0 explicitly expands beyond fabs to full-stack capability, with design and IP as a core pillar.

• Continuation + expansion of Design-Linked Incentive (DLI) under ISM 2.0 (now implicitly part of the mission rather than a standalone scheme).

• Alignment with AI, automotive, telecom, defence and data-centre demand, which indirectly anchors domestic chip design demand.

What this actually means

• Stronger support for:

  • Fabless ASIC/SoC startups

  • Automotive MCUs, power, sensors, RF, AI accelerators

  • System-aware chip design (India’s real strength)

• Increased likelihood of co-development models:

  • Indian design + foreign fab + local OSAT

Who benefits most

• Mid-stage Indian fabless firms (not idea-stage startups)

• Global companies expanding India design ownership, not just headcount

• EDA, verification, silicon lifecycle software vendors

Key limitation

• No direct domestic fab guarantee for advanced nodes — design remains globally fab-dependent.

2. Wafer Fabs (Logic, Memory, Analog, Compound):

(Greenfield fabs, JV fabs, specialty fabs)

What the budget does

• No new “headline fab subsidy number”, but:

  • ISM 2.0 keeps fab support alive

  • Signals continuity rather than reset

• Emphasis subtly shifts from “any fab” → strategic + viable fabs

What this actually means

• Support remains strongest for:

  • Mature nodes (28nm and above)

  • Analog / power / compound semiconductors

  • Sensors, discretes, automotive-grade silicon

• Advanced logic fabs remain politically supported but economically cautious

Who benefits most

• Compound semiconductor fabs (SiC, GaN)

• Power and analog fabs aligned with EV, renewables, industrial

• Consortia with clear anchor customers

Key limitation

• India still lacks:

  • Local equipment ecosystem maturity

  • Deep chemical & gas redundancy

• Budget signals patience, not acceleration. 

3. OSAT / ATMP / Advanced Packaging:

(Assembly, test, packaging — India’s near-term sweet spot)

What the budget does

• ISM 2.0 implicitly elevates packaging as strategic

• ECMS ₹40,000 crore outlay strongly supports:

  • Substrates

  • Lead frames

  • Interposers

  • Advanced PCBs

What this actually means

• Best-positioned sector in India today

• Strong case for:

  • Advanced packaging (SiP, 2.5D, chiplets)

  • Automotive & industrial test operations

• Packaging becomes the bridge between Indian design and global fabs

Who benefits most

• OSATs with:

  • Automotive / power / RF focus

  • Mid-volume, high-mix profiles

• Robotics, automation, and test-equipment vendors

Key limitation

• Still dependent on imported wafers

• Talent gap in advanced packaging process engineering

4. Semiconductor Equipment:

(Process tools, metrology, robotics, handling, automation)

What the budget does

• First time equipment is explicitly mentioned as a domestic target

• ISM 2.0 aims to:

  • Encourage local manufacturing of semiconductor equipment

  • Support subsystem-level localization

What this actually means

• India is not trying to build an ASML, instead:

  • Wafer handling

  • Vacuum robotics

  • FOUPs

  • Load ports

  • Back-end tools

  • Test automation

• Strong alignment with:

  • OSATs

  • Specialty fabs

  • Pilot lines

Who benefits most

• Foreign equipment firms setting up:

  • Local manufacturing

  • JV production

  • India-specific variants

• Indian firms in:

  • Precision motion

  • Robotics

  • Industrial automation

  • Vacuum systems

Key limitation

• Front-end lithography, etch, deposition remain out of reach (for now)

5. Materials, Chemicals, Gases:

(Wafers, photoresists, CMP, specialty gases, substrates)

What the budget does

• Explicit recognition that materials are a strategic weakness

• Links semiconductor push with:

  • Rare-earth corridors

  • Chemical manufacturing

  • High-purity materials

What this actually means

• Incentives favour:

  • Back-end materials first

  • Specialty chemicals before front-end purity extremes

• Gradual domesticization strategy

Who benefits most

• Specialty chemical companies willing to:

  • Segregate semiconductor-grade production

  • Partner with fabs/OSATs early

• Substrate and advanced PCB makers

Key limitation

• Front-end purity levels (7N, 9N) will still be import-heavy for years

6. Electronics Manufacturing (Downstream Demand):

(EMS, automotive, telecom, consumer, industrial)

What the budget does

• ECMS ₹40,000 crore is demand-side fuel

• Strengthens:

  • Domestic electronics volumes

  • Export-oriented manufacturing

What this actually means

• Semiconductor demand is:

  • More predictable

  • Less policy-fragile

• Especially strong for:

  • Automotive electronics

  • Power management

  • Sensors

  • Connectivity chips

Who benefits most

• Chipmakers aligned with Indian OEMs

• EMS players pushing localisation beyond final assembly

7. Talent, R&D, Academia - Industry:

(The quiet but critical layer)

What the budget does

• ISM 2.0 emphasises:

  • Industry-led research centres

  • Training tied to manufacturing, not just VLSI theory

What this actually means

• Shift from:

  • “VLSI course factories”

→ process, test, packaging, yield engineering

• Better alignment with real fabs & OSATs

Key limitation

• Talent ramp is still 5–10 years, not immediate

Executive Summary

Budget 2026 signals that India is no longer chasing headlines — it’s building survivability.

• Not a “mega-fab announcement” budget

• A supply-chain hardening budget

• Strongest for OSAT, packaging, equipment, materials, design

• Advanced logic fabs remain aspirational, not abandoned

SUMMARY 2025

Let's take a quick overview of the efforts of 2025......

1. Market Expansion & Demand:

India’s semiconductor market has continued to grow, estimated around US $45 - 50 billion in 2024-25, up from about $38 billion in 2023. Projections indicate this could expand to $100 - 110 billion by 2030 with sustained policy and investment support.

2. Major Projects & Investments:

In 2025 the government and private sector continued to green-light major initiatives:

• The HCL-Foxconn JV fab near Jewar, UP, was approved with significant capacity for display driver chips >> a strategic intermediate step toward full chip production.

• Multiple projects under the India Semiconductor Mission (ISM) and the PLI scheme helped attract strong investment commitments and created manufacturing momentum.

3. Policy and Strategy Advances:

• The government launched India Semiconductor Mission 2.0 (ISM 2.0) under the Union Budget 2026, with allocations aimed at broadening indigenous capabilities around equipment, materials, and IP development, not just chip assembly.

• Gujarat’s semiconductor ecosystem around Dholera saw heightened focus and investment under ISM 2.0, anchoring India’s semiconductor footprint.

Milestones & Ecosystem Indicators in 2025

✔ Advanced Capability Development

India signaled intentions to move beyond early nodes: government officials officially stated ambitions to progress toward 5–7 nm class semiconductors, illustrating a bolder R&D roadmap beyond basic ATMP (Assembly, Testing, Marking & Packaging) activities.

✔ Domestic & Global Collaboration

Strategic partnerships with semiconductor hubs like Taiwan, Japan, and the U.S. strengthened technology exchange, supply chain linkages, and talent development.

✔ Educational & Workforce Development

India’s massive EDA (Electronic Design Automation) training initiative logged over 10 million student hours in 2025, demonstrating serious efforts to build design talent foundational to semiconductor growth.

What Is Still Behind Expectations (Challenges)

Despite strong momentum, some areas lag original ambitions:

• Full commercial chip production at scale — while government and industry leaders had signaled that chip manufacturing would start in 2025, large-scale fabs producing advanced nodes did not yet reach volume production this year.

• Supply chain readiness — critical segments like semiconductor equipment, advanced materials, and gases remain under-developed domestically. This means continued reliance on global suppliers for advanced manufacturing inputs.

Outlook: Near to Midterm (2026–2030)

> Next 12 - 24 months

• Commercial chip production is expected to scale up, particularly from ATMP units and initial fabs (e.g., HCL-Foxconn, Tata/PSMC).

• ISM 2.0 will accelerate efforts to build equipment and materials capabilities — a major structural upgrade for India’s semiconductor ecosystem.

• Continued international partnerships and event platforms (SEMICON India, IESA Vision Summit, embedded tech expos) will strengthen ecosystem connectivity and investment flows.

> 3 - 5 years

• The Indian semiconductor market could double again toward $100+ billion by 2030 if policy momentum persists and manufacturing ramps effectively.

• India is likely to shift from being a primarily design and assembly center toward high-volume advanced packaging and mid-node fab production.

> Longer term (beyond 2030)

• If India successfully localizes equipment, materials, and IP creation, it could emerge as a significant alternative chip hub complementing Taiwan, Korea, and the U.S.

• Full competitiveness in the most advanced logic nodes (e.g., <10 nm) remains a long-term goal that will stretch into the next decade.

Summary

2025 has been a year of consolidation and transition for India’s semiconductor ambitions: policy frameworks matured, investments were scaled up, ecosystem building deepened, and India moved closer to commercial chip production. While the country did not yet become a global manufacturing powerhouse this year, clear structural progress (particularly with ISM 2.0, workforce training, and strategic partnerships) sets up a stronger trajectory for the next 3–5 years.

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