India Adding Three More Chip Plants

The new Indian semiconductor fabrication plant by Tata Electronics in Dholera, Gujarat, is a massive ₹91,000 crore ($11 billion) project. It will have a capacity of 50,000 wafer starts per month and will produce chips on 28nm, 40nm, 55nm, 90nm, and 110nm nodes, targeting applications like power management ICs, display drivers, microcontrollers, and high-performance computing logic. This initiative is supported by a technology transfer agreement with Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC), which will provide design and construction support for the AI-enabled facility. The collaboration aims to bring a portfolio of cutting-edge semiconductor technologies and talent to India. In parallel, Tata is establishing a ₹27,000 crore (~$3.2 billion) Outsourced Semiconductor Assembly and Test (OSAT) facility in Morigaon, Assam, with a projected daily output of 48 million chips. This plant will focus on indigenous packaging technologies, including Wire Bond, Flip Chip, and Integrated Systems Packaging (ISP), with the first phase expected to be operational by mid-2025. The facility will cater to the automotive, mobile devices, and AI sectors. A third major project is a ₹7,600 crore (~$917 million) OSAT plant in Sanand, Gujarat, a joint venture between CG Power, Japan's Renesas Electronics, and Thailand's Stars Microelectronics. This facility will offer a range of packaging solutions from legacy QFN and QFP to advanced Flip Chip Ball Grid Array (FC BGA) and Flip Chip Scale Package (FC CSP). The plant's capacity is planned to ramp up to 15 million units per day, with the first chips from the pilot line anticipated by mid-2026. These developments are creating a significant demand for skilled professionals, with projections of 1 million new jobs in India's semiconductor sector by 2026. To meet this demand, the Indian government's Chips to Startup (C2S) program aims to train 85,000 engineers in VLSI and embedded system design. However, a significant skills gap remains, with only a small percentage of engineering graduates currently equipped for fab-specific roles. The expansion has caught the attention of major industry players. By late 2025, Apple was reportedly in preliminary discussions with Indian companies, including CG Semi, to locally assemble and package certain iPhone chips. The initial focus of these talks is believed to be on display driver integrated circuits, a move that would further integrate India into high-value electronics manufacturing. From a regulatory standpoint, companies operating in this expanding ecosystem must navigate India's trade laws, including securing an Importer-Exporter Code (IEC) for any import or export activities. Additionally, electronics and IT goods are required to have Bureau of Indian Standards (BIS) certification to ensure they meet quality and safety standards. India's export control framework, governed by the SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies) list, regulates the export of dual-use items and technologies. This is a critical compliance area for companies involved in the semiconductor value chain, which often includes sensitive technologies with potential military applications.