India Begins Semiconductor Production at 3 Plants, 5–8 More Planned: PM Modi
According to the India Semiconductor Mission, 12 semiconductor projects have been approved, 3 facilities already having commenced commercial production in 2026.
India has begun commercial semiconductor production at 3 plants, with another 5 to 8 semiconductor plants expected to come up over the next 7 to 8 years, Prime Minister Narendra Modi said in his Independence Day address from the Red Fort on August 15.
Modi said the development marks an important step in India’s efforts to build a domestic semiconductor ecosystem and reduce dependence on overseas chip supply chains.
According to the India Semiconductor Mission, 12 semiconductor projects have been approved under the first phase of the programme, with 3 facilities already having commenced commercial production in 2026.
The 3 operational facilities include Micron’s semiconductor assembly and test facility in Sanand, Gujarat, Kaynes Semicon’s OSAT facility in Sanand and CG Semi’s semiconductor facility in Gujarat. Kaynes began commercial production in March 2026, while CG Semi has also commenced commercial operations.
The approved semiconductor projects span 6 states and involve cumulative investments of around ₹1.64 lakh crore, according to government data. The projects cover semiconductor fabrication, assembly, testing, packaging and other parts of the chip manufacturing ecosystem.
The expansion comes as India moves into the next phase of its semiconductor strategy. In July, the Union Cabinet approved Semicon India Programme 2.0 with an outlay of ₹1,27,500 crore, aimed at strengthening the country’s semiconductor ecosystem across manufacturing, design, equipment and materials, supply chains, research and development, and talent development.
The government has also been supporting semiconductor design startups and companies as part of its broader effort to build capabilities across the chip value chain.