India Advances Semiconductor Manufacturing
India is continuing its push for semiconductor self-reliance with new investments. The HCL Group, in partnership with Foxconn, announced a ₹3,700 crore investment in a chip manufacturing unit. Separately, the government of Odisha approved a new semiconductor chip facility in the state.
- The HCL-Foxconn joint venture, named India Chip Private Limited, is establishing an Outsourced Semiconductor Assembly and Test (OSAT) facility. HCL holds a 60% stake, and Foxconn holds 40%. The facility will focus on packaging and testing silicon wafers to produce finished chips, initially targeting display drivers for various electronics. - These new investments are part of the broader "Semicon India" program, which has a financial outlay of ₹76,000 crore (approximately $10 billion) to develop a comprehensive semiconductor and display manufacturing ecosystem. The program provides financial support, covering up to 50% of the project cost for semiconductor fabs and display fabs. - Tata Electronics is also a key player, partnering with Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) to build India's first 12-inch wafer fab in Dholera, Gujarat. This project, with an investment of about $11 billion, will manufacture chips for applications like power management, display drivers, and microcontrollers for the automotive, AI, and data storage markets. - In addition to the HCL-Foxconn venture, another new facility in Odisha by SiCSem Private Limited, in collaboration with UK-based Clas-SiC Wafer Fab Ltd., will be India's first commercial compound semiconductor fab. This plant will focus on Silicon Carbide (SiC) based semiconductors for high-demand sectors like electric vehicles, defense, and renewable energy. - U.S.-based Micron Technology is set to begin commercial production at its semiconductor assembly and test facility in Sanand, Gujarat. This $2.75 billion plant is a significant step in India's efforts to become a global hub for chip manufacturing and is expected to produce nearly 14 million units per week once fully operational. - The Indian government is actively promoting the sector by amending regulations, such as reducing the minimum land requirement for a semiconductor or electronics components SEZ from 50 to 10 hectares. This is intended to attract more investment and facilitate the establishment of manufacturing units. - To build a skilled workforce, India aims to train 85,000 engineers by 2026 to meet the demands of the growing semiconductor ecosystem. The government is also supporting startups and academic institutions through initiatives like the Design Linked Incentive (DLI) scheme to foster a domestic chip design industry. - These initiatives are part of India's broader strategy to reduce its reliance on semiconductor imports and establish itself as a key player in the global electronics supply chain. The country's semiconductor market is projected to reach $110 billion by 2030, capturing a significant share of the global market.
