As India celebrates its 77th Republic Day in 2026, the nation's ambition to establish itself as a global semiconductor manufacturing hub is gaining considerable momentum. The government's proactive policies and strategic initiatives, spearheaded by the India Semiconductor Mission (ISM), are beginning to yield tangible results, with commercial production slated to commence this year.
Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, has affirmed that India is on track to begin commercial semiconductor production in 2026. Speaking to the media, Vaishnaw highlighted that the initial target, set in January 2022, was to begin production within five years, and he expressed satisfaction that this goal is being met. In fact, four plants are expected to begin commercial operations in 2026. Pilot production has already commenced at three plants in 2025.
Several projects are underway, supported by substantial investments. Micron Technology is investing over $800 million towards a $2.75 billion semiconductor facility. Overall, five projects have received approval with a combined investment nearing Rs 1.52 lakh crore. These projects involve some of the largest manufacturing investments India has witnessed in decades. Micron's ATMP facility in Gujarat represents an investment of over Rs 22,500 crore, while Tata Electronics' proposed fab at Dholera, in partnership with Taiwan's Powerchip Semiconductor Manufacturing Corp (PSMC), is pegged at nearly Rs 91,000 crore. Additionally, assembly and packaging plants are being established across Gujarat, Assam, Uttar Pradesh, Odisha, and Punjab, representing tens of thousands of crores in committed capital.
The government has approved six semiconductor fabrication plants with an outlay of $1.3 billion, signaling a shift towards execution-led capacity building. A further $2.2 billion has been allocated for deep-tech research and development, reinforcing India's position in critical technologies. The India Semiconductor Mission and Semicon India initiatives are accelerating the development of domestic chip-making infrastructure, including fabrication capacity, testing facilities, and advanced packaging units.
India is also focusing on developing a skilled workforce to support the burgeoning semiconductor industry. Against a target of developing 85,000 skilled professionals over 10 years, the nation has already trained 65,000 in just four years.
However, challenges remain. India still imports over 90% of its critical components, including semiconductors and displays. Continuous improvement of infrastructure is essential, and geopolitical tensions present both opportunities and risks. The India Electronics and Semiconductor Association (IESA) has urged the government to ensure timely disbursement of committed incentives, extend concessional tax regimes to fabs and advanced manufacturing, and link export incentives to domestic value addition.
Despite these challenges, the confidence in India's semiconductor journey is growing globally. Global industry leaders are expressing their support and willingness to contribute to India's progress. Equipment manufacturers are exploring India as a base, and the materials manufacturing ecosystem is taking shape. As India celebrates its Republic Day, the nation's strides in the semiconductor industry signify a strategic shift towards self-reliance and a prominent role in the global technology landscape.
