India's Production Linked Incentive scheme for semiconductors received applications totalling Rs 76,400 crore — 2.5 times the government's initial target of Rs 30,000 crore — as global chip makers including Taiwan's Foxconn Semiconductor, US-based Micron Technology, Japan's Renesas and South Korea's SK Hynix expressed strong interest in setting up fabrication and assembly-test-mark-pack (ATMP) facilities in India.
The first approved projects — a $2.7 billion Micron ATMP plant in Gujarat and a $11 billion Tata Electronics fab in Dholera — are under construction and expected to begin production by end of 2026 and 2028 respectively. The Semiconductor Mission, led by former NASSCOM leader Dr Ajit Manocha, has been instrumental in streamlining approvals and addressing industry concerns about skilled manpower availability and utility infrastructure at designated chipmaking zones.
India aims to create a $100 billion semiconductor ecosystem by 2030, covering chip design, fabrication, ATMP and related electronic manufacturing. The domestic chip design ecosystem is already strong, with over 3,000 chip design companies and 125,000 chip designers employed across Bengaluru, Hyderabad and Pune. The fab investments, once operational, will complete India's ambition of being a full-stack semiconductor nation with end-to-end capabilities from design to finished chip production.
