India’s Semiconductor Push Enters a Defining Phase with 12 Approved Chip Projects
India’s semiconductor ambitions are moving from policy vision to large-scale execution.
Under the India Semiconductor Mission (ISM), the government has now approved 12 semiconductor-related projects, including fabrication units, ATMP facilities, and component manufacturing plants. Among the most significant developments is the approval of India’s first display fabrication unit, marking a major step in building a comprehensive electronics manufacturing ecosystem within the country.
The projects represent cumulative investments worth billions of dollars and are spread across multiple states, positioning India as an emerging global destination in the semiconductor and electronics value chain.
At the centre of this transformation is the government’s strategy to reduce dependence on imports while strengthening domestic manufacturing capabilities in a sector considered critical for economic growth, national security, automotive technology, telecommunications, artificial intelligence, and consumer electronics.
One of the largest projects is the Tata Electronics semiconductor fabrication plant in Dholera, Gujarat, being developed in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC). The facility is expected to manufacture up to 50,000 wafers per month and represents a major milestone in India’s chip manufacturing journey.
The approved projects also include multiple Assembly, Testing, Marking and Packaging (ATMP) facilities. These units play a critical role in the semiconductor supply chain by handling the final stages of chip production before deployment across industries.
Another major development is the approval of the country’s first display fabrication facility, a segment that powers screens used in smartphones, televisions, laptops, automotive systems, and industrial devices. Industry experts view this as a strategic addition, helping India move beyond assembly-led manufacturing into deeper value creation.
The government has emphasized that semiconductors are no longer just an industrial sector. They are strategic infrastructure. Global supply chain disruptions during the pandemic exposed the vulnerabilities of excessive geographic concentration in chip manufacturing, leading countries worldwide to aggressively localise semiconductor capabilities.
India’s semiconductor roadmap is also closely aligned with the country’s expanding electronics manufacturing ecosystem. As sectors such as electric vehicles, data centres, telecom infrastructure, defence systems, consumer electronics, and AI-led technologies continue to grow, demand for chips is expected to rise significantly over the next decade.
From a real estate and infrastructure perspective, the impact is substantial.
Semiconductor and electronics manufacturing projects require large-scale industrial land parcels, high-quality utilities, uninterrupted power supply, advanced water systems, logistics connectivity, and specialised industrial infrastructure. This creates long-term demand across industrial corridors, warehousing ecosystems, urban infrastructure, housing, and commercial development around emerging manufacturing clusters.
States such as Gujarat, Assam, Uttar Pradesh, Tamil Nadu, and Karnataka are increasingly positioning themselves as semiconductor and electronics manufacturing destinations, supported by policy incentives and infrastructure investments.
The scale and strategic importance of these projects signal a broader shift in India’s industrial growth story. The focus is no longer limited to low-cost manufacturing. The country is steadily moving towards advanced manufacturing, technology-led infrastructure, and deeper integration into global supply chains.
As semiconductor investments accelerate globally, India’s ability to execute these projects efficiently will play a defining role in shaping its position in the next era of global manufacturing and industrial growth.
