update of semiconductor manufacturing in India

As of 21 September 2026, India has moved beyond the “announced semiconductor projects” stage into actual commercial semiconductor production. The important point, however, is that India is not yet manufacturing leading-edge CPUs/GPUs at advanced nodes. The current build-out is concentrated on memory assembly/test, mature-node fabrication, power semiconductors, compound semiconductors, display-related devices and advanced packaging/OSAT.

1. Where India stands today
The latest government position is:

12 semiconductor manufacturing projects approved
Total committed investment >₹1.64 lakh crore
Projects spread across six states
Five commercial semiconductor ATMP/packaging lines are now operational
Micron, Kaynes and CG Semi have commenced commercial production, with CDIL and Suchi Semicon newly adding commercial lines in September 2026. (Press Information Bureau)
Separately, 24 semiconductor design projects have been approved and 105 startups/MSMEs have received access to industry-standard EDA tools. (Press Information Bureau)
So the status has changed materially during 2026.

 2. The most important development: Micron is actually producing chips in India

Micron — Sanand, Gujarat
This is probably the clearest evidence that India's semiconductor manufacturing programme has entered the production phase.

Micron's Sanand facility was inaugurated in February 2026 and has started commercial production of memory products.

It handles DRAM and NAND wafers supplied from Micron's global wafer fabs, then performs assembly, testing and packaging in India. (Press Information Bureau)

The distinction is important:

India is not fabricating the DRAM/NAND silicon wafers at Sanand.

The chain is approximately:

Micron wafer fab overseas → India/Sanand assembly → testing → finished memory/storage product

Micron's CEO said in September that Sanand was already producing tens of millions of chips in 2026, with production expected to reach hundreds of millions in 2027. (The New Indian Express)

The government-approved project has a stated capacity of approximately 14 million units/week when fully developed. (Press Information Bureau)

 
3. Tata's Dholera fab is the big one to watch

Tata Electronics + PSMC — Dholera, Gujarat
This is India's most significant actual wafer-fabrication project.

Investment:

~₹91,526 crore

Technology partner:

PSMC, Taiwan

Planned capacity:

~50,000 wafer starts/month

The facility is a 300-mm silicon wafer fab. (Press Information Bureau)

At SEMICON India 2026, Tata Electronics confirmed that construction remains on track. Tata also announced a substantial ecosystem-development programme involving semiconductor equipment, chemicals, photoresists, advanced packaging and materials. (Press Information Bureau)

This is much more important technologically than simply having packaging plants because this is where India begins developing actual wafer fabrication capability.

But don't expect 3-nm/5-nm processors.
The Tata–PSMC fab is aimed at mature semiconductor technology, not TSMC-style leading-edge smartphone/AI processor nodes.

That is actually quite relevant to India because mature nodes cover:

automotive electronics
industrial controllers
power-management ICs
microcontrollers
display drivers
communications
defence electronics
consumer electronics
sensors
embedded systems
For India's industrial and defence electronics ecosystem, these nodes can be highly relevant.

 4. Tata's Assam facility
Tata Electronics — Jagiroad, Assam
Investment:

~₹27,120 crore

Focus:

semiconductor packaging

Planned capacity:

~48 million units/day

The facility uses indigenous semiconductor packaging technology and is being developed alongside the broader Tata semiconductor ecosystem. (Press Information Bureau)

Tata confirmed at SEMICON India 2026 that the Jagiroad OSAT facility remains on schedule. (Press Information Bureau)

 
5. CG Power + Renesas + Stars Microelectronics
Sanand, Gujarat
Investment:

~₹7,584 crore

Partners:

CG Power — India
Renesas — Japan/US
Stars Microelectronics — Thailand
Technology is being supplied by Renesas and Stars.

Planned production is approximately:

15.07 million units/day

This is primarily an assembly/test/packaging operation, rather than an advanced silicon wafer fab. (Press Information Bureau)

CG Semi has already entered commercial production. (Press Information Bureau)

This project is particularly interesting because Renesas brings established automotive/industrial semiconductor technology into India's manufacturing ecosystem.

 
6. Kaynes Semicon — Sanand

Kaynes Technology
Investment:

~₹3,307 crore

Technology focus:

semiconductor assembly/packaging

Kaynes' Sanand facility commenced production in 2026. (Press Information Bureau)

An interesting development announced this month is that Kaynes is already considering a much larger ~$1 billion additional OSAT project, including advanced packaging and LED/micro-LED technologies. (The Financial Express)

This is an important indication that companies aren't simply building one government-subsidised plant and stopping there.

 
7. CDIL — Mohali, Punjab
This one is particularly relevant to your interests in power electronics and motor-control electronics.

Continental Device India Ltd. — Mohali
CDIL is expanding semiconductor manufacturing to produce:

MOSFETs
IGBTs
Schottky diodes
transistors
Silicon devices
Silicon-Carbide devices
The planned capacity is approximately:

158.38 million devices/year

Government investment associated with the expansion is approximately ₹117 crore. (Press Information Bureau)

And this is no longer merely planned.

Commercial production at CDIL Semiconductor, Mohali was inaugurated in September 2026. (Press Information Bureau)

For someone working with 24-V MOSFETs, motor drivers, industrial electronics and defence electronics, this is potentially much more interesting than India's future high-end CPU ambitions.

8. SiCSem — Odisha
This is another project I would watch closely.

SiC semiconductor manufacturing
Investment:

~₹2,066 crore

Technology partner:

Clas-SiC Wafer Fab, UK

Packaging partner:

CDIL

Planned wafer capacity:

5,000 wafers/month

Packaging:

8 million units/month

The focus is silicon-carbide semiconductor technology. (Press Information Bureau)

SiC is important for:

EV power electronics
high-voltage power supplies
solar inverters
industrial drives
aerospace
defence
high-efficiency power conversion
fast chargers
For India's power-electronics industry, this could ultimately be more strategically significant than trying to immediately compete with 2-nm CPU fabs.

 9. Other projects
The remaining approved ecosystem includes:

Company
Location
Main technology
3D Glass Solutions
Odisha
Glass interposers / advanced packaging / 3D integration
ASIP Technologies
Andhra Pradesh
Advanced system-in-package
CDIL
Punjab
Power discrete semiconductors
SiCSem
Odisha
SiC wafer fab + packaging
Crystal Matrix
Gujarat
GaN compound semiconductor / Mini-Micro LED
Suchi Semicon
Gujarat
Semiconductor packaging
HCL–Foxconn
Uttar Pradesh
Display-driver semiconductor manufacturing
The government approved the SiCSem, CDIL, 3DGS and ASIP projects in August 2025, adding roughly ₹4,600 crore of investment. (Press Information Bureau)

Crystal Matrix was subsequently approved in May 2026 for an integrated compound-semiconductor fabrication and ATMP facility for Mini/Micro-LED display modules. (Press Information Bureau)

The HCL–Foxconn project at Jewar is planned around display-driver chips, with a stated capacity of 20,000 wafers/month. (The New Indian Express)

 10. What changed dramatically in September 2026
This is probably the most important current update.

At SEMICON India 2026, the government announced that India is transitioning from Semicon 1.0 → Semicon 2.0.

The new programme has an approved outlay of:

₹1,27,500 crore
Semicon 2.0 has six pillars:

Chip design
Semiconductor equipment & materials
Wafer fabrication
Advanced packaging
Applied R&D
Talent development
(Press Information Bureau)

This is a significant change in emphasis.

The first phase was essentially:

"Get semiconductor factories into India."
The second phase is increasingly:

"Build the ecosystem around those factories."
 
11. And this ecosystem part is VERY important
A semiconductor fab cannot operate simply by importing everything.

India needs:

Silicon wafers → photoresist → specialty chemicals → gases → deposition equipment → lithography → etching → cleaning → metrology → packaging → testing → PCBs → electronics manufacturers

India has historically been weak in several of these upstream areas.

That is why the September announcements from companies such as:

ASML
Applied Materials
Lam Research
Tokyo Electron
Merck
Fujifilm
JSR
Nexperia
are arguably as important as the fabs themselves.

For example, Applied Materials announced an India Vision 2035 involving approximately US$5 billion investment over the next decade and expansion of its India supply-chain capacity. Lam Research announced approximately ₹10,000 crore for silicon-component manufacturing and vertical ingot processing in India. (Press Information Bureau)

Tata also signed semiconductor-materials cooperation with Japan's Sumitomo Chemical just after SEMICON India 2026. (Tata Electronics)

 
12. Where India is strong today vs where it is still weak
I would divide India's semiconductor position into four levels:

Area
India status in Sept 2026
Semiconductor design
🟢 Strong
Embedded/ASIC design talent
🟢 Strong
Assembly/test/packaging
🟢 Now commercially operational
Mature-node wafer fabrication
🟡 Being established
SiC/GaN/compound semiconductors
🟡 Developing
Semiconductor equipment
🟡 Developing
Semiconductor materials/chemicals
🟡 Early but accelerating
Advanced packaging
🟡 Developing
28/22/16 nm-class ecosystem
🟡 Developing
7/5/3 nm leading-edge logic
🔴 Not currently established
Leading-edge DRAM fabrication
🔴 Not established
Leading-edge GPU/CPU fabrication
🔴 Not established
The red areas should not necessarily be interpreted as failures. Building a reliable mature-node and power-semiconductor ecosystem first is a very different industrial strategy from immediately attempting to reproduce TSMC's leading-edge capability.

 13. One distinction that is often missed
You will see headlines saying:

"India is now manufacturing semiconductors."
That is true, but it needs qualification.

There are three very different activities:

A. Wafer fabrication
Silicon wafer → transistor fabrication → finished die

This is the hardest part.

India's major new project here is:

Tata–PSMC Dholera

and:

SiCSem SiC fab

B. Assembly / packaging / testing
Finished semiconductor die → package → electrical test

This is where India has moved fastest.

Examples:

Micron, Kaynes, CG Semi, CDIL, Suchi, Tata Assam, etc.

C. Semiconductor design
Architecture → RTL → synthesis → physical design → tape-out

India is already very strong here because multinational semiconductor companies have had large Indian design centres for decades.

So India's semiconductor ecosystem is currently much stronger in design + packaging + electronics manufacturing than in actual cutting-edge wafer fabrication.

 14. What this means specifically for Indian electronics engineers
For someone with your embedded hardware + firmware + defence/industrial electronics background, I think the most interesting consequence isn't necessarily getting a job at a wafer fab.

The much larger opportunity is likely to appear around:

Power electronics
SiC MOSFETs
GaN devices
IGBTs
gate drivers
motor drives
SMPS
EV power electronics
industrial drives
Automotive
MCUs
power-management ICs
sensors
CAN/LIN devices
battery-management electronics
motor control
Defence/aerospace
rad-hard / high-reliability electronics
ADC/DAC
power semiconductors
FPGA/SoC
RF devices
high-temperature electronics
ruggedised packaging
semiconductor obsolescence management
Industrial electronics
PLCs
motor controllers
instrumentation
pressure/current/temperature sensing
industrial communications
power supplies
That is particularly relevant because India's current semiconductor projects are heavily oriented toward automotive, industrial, telecommunications, power electronics and aerospace/defence applications, rather than only smartphones and PCs. (Press Information Bureau)

 
My assessment of the situation — purely from the factual trajectory
2024: India had semiconductor projects and announcements.

2025: The project pipeline expanded substantially.

Early 2026: First commercial semiconductor production began.

September 2026: India has multiple commercial packaging/ATMP operations, Micron is commercially producing memory products, Tata's 300-mm wafer fab is under construction, and the government has launched Semicon 2.0 with a much broader equipment/materials/R&D strategy. (Press Information Bureau)

So I would describe India's current position as:

India has crossed the threshold from "trying to attract semiconductor manufacturing" to "operating commercial semiconductor production," but it is still several stages away from being a full-spectrum, leading-edge semiconductor manufacturing country.