Synopsis: India’s semiconductor production landscape is now home to 12 approved projects of around ₹1.64 lakh crore under the India Semiconductor Mission (ISM) 2.0 across six states.
Under the India Semiconductor Mission (ISM) and the ₹76,000 crore incentive scheme, the push to develop a local chip ecosystem in India, right from design, fabrication to packaging, seems to be getting a concrete shape. Here’s a state-wise look at where India’s semiconductor manufacturing is becoming the next chip hub of the world.
Gujarat
Gujarat hosts six of the 12 approved units, spread across three locations:
- Dholera: Home to Tata Electronics’ fab in partnership with Taiwan’s PSMC, India’s first true wafer fabrication unit, built at an investment of around ₹91,000 crore with a capacity of 50,000 wafers a month at the 28nm node. Crystal Matrix Limited has also been approved here for an integrated compound semiconductor and ATMP facility for Mini or Micro-LED display manufacturing.
- Sanand: Houses three packaging (ATMP/OSAT) units, Micron Technology, Kaynes Semicon, and CG Power-Renesas-Stars. Micron and Kaynes have already begun commercial production.
- Surat: Suchi Semicon Private Limited has been approved for an OSAT facility with a proposed capacity of over 1,033 million chips annually, focused on discrete semiconductors for power electronics and automotive applications.
Gujarat’s own semiconductor policy adds a state-level capital subsidy and land, water, and power concessions on top of the central incentive, making it the preferred destination for large-scale investment.
Assam
Jagiroad, Morigaon district hosts Tata Semiconductor’s ATMP facility which is a ₹27,000 crore investment and India’s first semiconductor unit in the Northeast. The plant is expected to generate over 27,000 direct and indirect jobs once fully operational.
Uttar Pradesh
A ₹3,700 crore joint venture between HCL Group and Foxconn is coming up at Yamuna Expressway Industrial Development Authority at Jewar in Greater Noida, near the upcoming Noida International Airport, to manufacture display driver chips (DDIC). This was the first ISM project approved outside the Gujarat-Assam corridor. This plant is expected to produce 36 million chips.
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Odisha
Info Valley, Bhubaneswar hosts two projects approved in August 2025:
- SicSem Private Limited, with UK-based Clas-SiC Wafer Fab, setting up India’s first commercial Silicon Carbide (SiC) compound semiconductor fab, with a capacity of 60,000 wafers annually for EV, defence, and renewable energy applications.
- 3D Glass Solutions Inc., building an advanced packaging and embedded glass substrate unit using glass interposer and 3D Heterogeneous Integration technology.
Punjab
- Mohali, Punjab: Continental Device India Private Limited (CDIL) is expanding its existing discrete semiconductor facility, with an annual capacity of over 158 million units for automotive and renewable energy use.
Andhra Pradesh
- Advanced System in Package (ASIP) Technologies, in partnership with South Korea’s APACT Co., is setting up a packaging unit with a 96-million-unit annual capacity, serving mobile phones and consumer electronics.
India Semiconductor Mission ISM 2.0
The Union Budget 2026-27 came up with an initial provision of ₹1,000 crore for FY 2026-27 for ISM 2.0. Even more, the Expenditure Finance Committee of the Finance Ministry approved a proposed outlay of ₹1.25 lakh crore for this new stage higher than the ₹76,000 crore in ISM 1.0 which is now awaiting Cabinet approval. It now focuses on semiconductor equipment and materials, indigenous IP chip design and the building of a resilient supply chain in India and is targeted to cover 75% of India’s domestic chip requirements by 2030.
All in all
From Dholera’s fabrication unit to Bhubaneswar’s compound semiconductor push, India’s semiconductor map is steadily diversifying beyond Gujarat. With ISM 2.0’s larger outlay in the pipeline, this geographic spread is set to deepen further in the coming years.
