NEW DELHI — India now has eight semiconductor fabrication plants under construction, representing more than ₹2.5 trillion (about $30 billion) in announced investment, according to industry trackers. The projects, spread across Gujarat, Tamil Nadu, Karnataka, Maharashtra, Madhya Pradesh, Sikkim and Andhra Pradesh, are expected to begin pilot production between 2026 and 2028 and to cut the country’s chip‑import bill by an estimated 30 percent, officials said on Thursday.
Plants and locations
The Jagran Josh roundup lists the eight fabs and their key details:
- Tata Semiconductor Fab – Gujarat’s Vadodara district; ₹30 billion investment; will produce logic and RF chips for automotive and telecom.
- Foxconn Semiconductor Plant – Sriperumbudur, Tamil Nadu; ₹30 billion; focused on advanced packaging and 28‑nm logic.
- Micron Technology Memory Facility – Rangpo, Sikkim; ₹40 billion; will manufacture DRAM and NAND modules for data‑center servers.
- Tower Semiconductor (M/s TowerCo) – Bengaluru, Karnataka; ₹25 billion; specialty analog and power‑management ICs.
- SkyWater Technology Foundry – Pune, Maharashtra; ₹20 billion; 65‑nm mixed‑signal and sensor chips.
- STMicroelectronics Advanced Fab – Chennai, Tamil Nadu; ₹22 billion; silicon‑carbide power devices for EVs.
- Powerchip Semiconductor Manufacturing – Bhopal, Madhya Pradesh; ₹28 billion; 45‑nm CMOS for consumer electronics.
- GlobalFoundries India Hub – Visakhapatnam, Andhra Pradesh; ₹45 billion; 14‑nm FinFET logic aimed at AI accelerators.
Collectively the plants will add roughly 1.2 million wafer‑per‑month capacity, enough to meet domestic demand for smartphones, automotive electronics and emerging AI hardware.
Government incentives
The Press Information Bureau’s factsheet on the “Semiconductor and AI Revolution” outlines the Production‑Linked Incentive (PLI) scheme that earmarks ₹76,000 crore for chip‑design and fab projects that meet export and employment targets. The policy also offers a 25 percent capital subsidy, duty‑free import of capital equipment and a single‑window clearance system through the Ministry of Electronics and Information Technology (MeitY).
Foreign investment climate
India Briefing notes that most of the fabs are joint ventures with foreign partners, benefitting from relaxed foreign‑direct‑investment (FDI) caps that now allow up to 100 percent ownership in “greenfield” semiconductor projects. The article cites a recent amendment to the Foreign Exchange Management Act that streamlines repatriation of profits and reduces the minimum capital requirement for overseas investors.
Industry outlook and challenges
Built In’s directory of Indian semiconductor firms shows more than 150 design houses already operating in Bengaluru, Hyderabad and Pune. Analysts say the new fabs will create a supply chain for these designers, but they also warn of talent shortages and the need for a reliable power grid. The PIB factsheet acknowledges that the government is investing ₹12,000 crore in a dedicated “Semiconductor Power Corridor” to address voltage stability.
While the plants are on track, the sector faces a global shortage of ultra‑pure water and a steep learning curve for sub‑10‑nm processes. Experts stress that achieving full‑scale production will require coordinated effort between the Ministry of Electronics, state governments and private R&D labs.
