India Semiconductor Mission: Collaborations, Capacity, and a Promising Future

India's semiconductor sector is rapidly gaining strength, fueled by key partnerships and significant investments aimed at building a strong foundation. Driven by strategic collaborations and substantial investments to establish a robust ecosystem, Recent agreements between Prime Minister Narendra Modi and Singapore's Prime Minister Lawrence Wong to support India’s semiconductor sector highlight the country's increasing dedication to becoming a global leader in the semiconductor field.

Major Announcements: India-Singapore Partnership and Other Key Investments

During his visit to Singapore, PM Modi, alongside PM Wong, explored Singapore’s advanced semiconductor facilities, including AEM Holdings. This visit resulted in agreements to drive the growth of India’s semiconductor sector, focusing on sharing Singapore’s expertise and enhancing India's local manufacturing capabilities. The collaboration is part of India’s strategy to attract foreign investment and strengthen its engineering talent pool.

In parallel, India has seen substantial investment from companies like Tata Electronics Pvt. Ltd., which, in partnership with Taiwan's Powerchip Semiconductor Manufacturing Corp (PSMC), is setting up a $3 billion semiconductor fab in Dholera, Gujarat expected to reach a production capacity of around 40,000 to 60,000 wafers per month. This addition will significantly boost India's domestic manufacturing capabilities. Tata Group has also signed a lease agreement with the Assam government to establish $3.25 billion semiconductor unit in Jagiroad. These moves align with the broader national strategy to support high-tech manufacturing and play a key role in India's semiconductor growth.

Further adding to India’s semiconductor expansion, the Adani Group and Israeli partner Tower Semiconductor have committed $10 billion to build a chip manufacturing plant in Maharashtra is projected to achieve a capacity of approximately 30,000 to 50,000 wafers per month. This plant will be crucial in expanding India's production, particularly for advanced semiconductor technologies. This project will include a phased investment of $7 billion in the first phase and $3 billion in the second phase. Micron has also pledged an investment of $2.75 billion under the India Semiconductor Mission (ISM), marking one of the largest investments in the sector. Micron's investment under the India Semiconductor Mission aims to add around 20,000 to 30,000 wafers per month to domestic production, focusing specifically on memory chips.

Other key investments include CG Power and Industrial Solutions' joint venture to set up a semiconductor facility in Sanand, Gujarat, with an investment of $915 million, with a projected capacity of approximately 10,000 to 15,000 wafers per month and Kaynes Semicon Pvt Ltd’s approved $397 million unit, also in Sanand is expected to add around 5,000 to 7,000 wafers per month. These facilities are anticipated to significantly contribute to India’s semiconductor production capacity, enhancing the country’s ability to meet growing local and global demand.

Semicon India Event and Industry Optimism

Prime Minister Modi will soon inaugurate the Semicon India event in Noida, reflecting the importance of the semiconductor sector for India's economic future. Ajit Manocha, President of SEMI, remarked that “India is primed to become a global semiconductor hub,” indicating the optimism within the industry. The event highlights the strong alignment between government policies and private sector efforts to establish a strong semiconductor ecosystem.

Experts such as Suresh Subramanyam from FlexAI and Sanjay Gupta from L&T Semiconductor are returning to India to apply their expertise in semiconductor packaging and product development, focusing on sectors like automotive and industrial electronics. This marks a shift in India’s role in the semiconductor supply chain—from designing chips for others to becoming a major producer to meet rising local demand.

Growing Talent and Homegrown Innovation

India’s rise in the semiconductor industry is not just about manufacturing chips. Companies like Ola Krutrim are developing homegrown AI chips, aiming to reduce reliance on foreign technologies. Ola Krutrim's roadmap includes AI chips such as Bodhi for artificial intelligence and Ojas for edge computing, with plans to deliver the first silicon by 2026. These innovations demonstrate India’s ambition to achieve technological independence.

Meanwhile, Renesas India has expanded its engineering team and deepened its collaboration with universities and startups. This focus on talent development and innovation is essential for the long-term sustainability of the industry, reinforcing India’s attractiveness as a semiconductor destination.

The Role of Reshoring and Regionalization in India's Semiconductor Growth

India's rapidly growing semiconductor sector is a prime example of the global trend towards reshoring and regionalization. Many industries have experienced challenges with long lead times, quality control issues, and supply chain disruptions when relying heavily on offshore suppliers. Events like the 2021 Suez Canal blockage underscored these vulnerabilities, prompting companies to regionalize production closer to home.

In India, initiatives like "Make in India" are designed to promote local manufacturing, helping reduce dependence on foreign suppliers and enhancing supply chain resilience. The semiconductor industry has embraced this shift, with key players like Tata, Micron, and Adani making significant investments in domestic production. These efforts are expected to create 10 lakh (1 million) jobs in India, further strengthening the country's position in the global semiconductor supply chain.

Impact on Supply Chain and Procurement Professionals

For procurement professionals, this reshoring movement presents exciting opportunities, including shorter lead times, improved quality control, and reduced risk of supply chain disruptions. By sourcing semiconductors locally, companies can gain greater control over their production processes while supporting India’s broader economic and technological growth.

With Tata, Tower Semiconductor, Adani, and Micron setting up facilities in India, procurement teams will benefit from reliable local sourcing options, reducing the reliance on overseas suppliers and minimizing the risk of disruptions.

Building a Strong Semiconductor Ecosystem

India’s semiconductor ambitions are being realized through government initiatives, private investments, and international partnerships. The upcoming Semicon India event will bring together industry leaders, policymakers, and engineers, showcasing India’s growing role in the global semiconductor industry.

Conclusion

India is no longer just a destination for outsourced chip design—it is becoming a big player in making semiconductors. With major investments from companies like Tata, Tower Semiconductor, Adani, and strong government support, India is ready to take a key role in the global chip industry. Collectively, these investments are anticipated to increase India's semiconductor production capacity by up to 100,000 wafers per month. This growth will enhance India’s role in the global semiconductor market, improving its ability to meet local demand and strengthening its position in the international supply chain.  For supply chain and procurement professionals, this means shorter delivery times, more reliable sourcing, and better quality control through local suppliers. As India's semiconductor industry grows, procurement teams will need to adapt and seize these new opportunities.