India's New Semiconductor Fab Capacity in 2024

Adam J. Fleischer
|  Created: April 22, 2024  |  Updated: July 1, 2024
India's New Semiconductor Fab Capacity in 2024

As the global semiconductor industry continues to expand globally, several nations are reassessing and fortifying their roles in this crucial sector. This strategic shift aims to ensure their competitive edge and address the industry's evolving needs. Among these nations, India's strategic move to ramp up its semiconductor fabrication capacity by 2024 stands out as a testament to its ambitions in the global technology arena

India’s initiative is not merely about enhancing manufacturing capabilities. It represents a significant step toward securing India's place in the highly competitive semiconductor industry, aiming to bolster national security, technological independence and economic growth.

Context and Strategic Importance

The semiconductor industry's role as the backbone of the modern digital economy cannot be overstated. Yet, its concentrated manufacturing bases have highlighted vulnerabilities in global supply chains, which have been underscored by recent disruptions. In response, India's push into semiconductor fabrication emerges as a strategic countermeasure, aiming to mitigate these risks and foster economic resilience.

technician in sterile coverall holds wafer that reflects many different colors with gloves and check it at semiconductor manufacturing plant
A wafer is examined at a semiconductor fab

Driven by a blend of economic, strategic and technological motivations, India's semiconductor ambitions are backed by robust government initiatives. These include the introduction of generous financial incentives, conducive policies and significant investments in infrastructure development, all designed to attract leading global semiconductor firms to Indian shores. 

India's Semiconductor Fab Projects in 2024

The year 2024 is poised to be a watershed for India's semiconductor manufacturing ambitions, with several significant fab projects slated to commence operations. These projects represent a broad collaboration between Indian enterprises and international semiconductor giants, marking a new chapter in India's technological advancement.

inside a chip component plant
Workers inside chip component plant
  1. Tata Group and Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC) Fab in Dholera, Gujarat: This joint venture is set to establish India's first semiconductor fab in Dholera, Gujarat. The fab will focus on high-performance computer chips with 28 nm technology and power management chips for sectors including EVs, telecom, defense, automotive and consumer electronics. The venture aims to bolster India's technological autonomy with a capacity of producing 50,000 wafers per month​​​​. (More details can be found on TechCrunch.)
  2. Micron Technology Assembly and Test Facility in Gujarat: In June of last year, Micron Technology announced an investment of $825 million to establish a new assembly and test facility in Gujarat. The first phase will become operational in late 2024 and represents a significant addition to India's semiconductor production capabilities​​.
  3. CG Power, Renesas Electronics Corporation and Stars Microelectronics Chip Packaging Plant in Sanand, Gujarat: This collaboration plans to set up a chip packaging plant specializing in consumer, industrial, automotive and power applications with a daily production capacity of 15 million chips​​.
  4. Simmtech's Chip Component Plant in Gujarat: Announced alongside the upcoming Micron semiconductor testing and packaging facility, Simmtech's investment highlights the collaborative efforts to establish a comprehensive semiconductor manufacturing ecosystem in Gujarat​​.
  5. Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) in Morigaon, Assam: TSAT plans to establish a fab unit with advanced semiconductor packaging technologies, aiming for a production capacity of 48 million chips per day. 

These projects are pivotal to India's ambitions of becoming a key player in the global semiconductor manufacturing industry. When operational, these new fabs will enhance technological self-reliance, reduce import dependencies and stimulate home-grown innovation across vital sectors.

Challenges and Opportunities

Embarking on this ambitious path, India faces a gamut of challenges, from establishing a robust semiconductor manufacturing infrastructure to overcoming logistical hurdles. Developing a skilled workforce proficient in the complexities of semiconductor fabrication is another critical challenge, driving the development of targeted education and training programs.

On the other hand, India's semiconductor venture presents immense opportunities. Beyond bolstering national economic and technological stature, these developments are poised to catalyze innovation across sectors, including telecommunications, automotive and consumer electronics. The successful implementation of these fabs will also significantly enhance India's export capabilities, marking its transition to a key node in the global semiconductor supply chain.

Implications for the Global Semiconductor Industry

India's foray into semiconductor manufacturing is set to have far-reaching implications for the global industry. By adding new capacity in a strategically important region, India contributes to the diversification and resilience of the global semiconductor supply chain. This move is likely to stimulate competition, encourage innovation and potentially lead to more collaborative international research and development efforts.

Global Semiconductor Manufacturing: A Closer Look at International Efforts

As India advances its semiconductor fabrication capabilities, it's part of a larger global trend where nations are striving to fortify their positions in the semiconductor industry. For example:

Taiwan: A powerhouse in semiconductor manufacturing, Taiwan is home to TSMC, the world's largest semiconductor foundry. The country continues to invest heavily in expanding its fab capacities, with TSMC spending over $100 billion to maintain its industry leadership.

South Korea: Known for giants like Samsung and SK Hynix, South Korea is aggressively expanding its semiconductor manufacturing capabilities. Back in 2021, the government announced a massive $450 billion investment plan to bolster the semiconductor industry over the next decade.

SK Hynix logo
An SK Hynix Factory

United States: The U.S. is reinvigorating its domestic semiconductor manufacturing through initiatives like the CHIPS for America Act. Intel plans a US fab building spree thanks to $20 billion in federal CHIPS act subsidies and loans.

These efforts underscore a global movement toward enhancing semiconductor manufacturing capabilities, driven by semiconductors' strategic importance in national security, economic growth and technological advancement.

Looking Ahead

India's strategic expansion into semiconductor fab capacity in 2024 represents a significant milestone in its technological and economic development. This bold initiative underscores India's ambition to secure a prominent position in the global semiconductor industry and highlights its potential role in enhancing global supply chain resilience and promoting technological innovation. 

As these new fabs begin operations, the world will be keenly watching India's transformation into a semiconductor manufacturing hub, a development that promises to redefine the global technology landscape in the years ahead.

See our related article on the Expected Growth in India’s Electronics Manufacturing Sector.

About Author

About Author

Adam Fleischer is a principal at, a technology marketing consultancy that works with technology leaders – like Microsoft, SAP, IBM, and Arrow Electronics – as well as with small high-growth companies. Adam has been a tech geek since programming a lunar landing game on a DEC mainframe as a kid. Adam founded and for a decade acted as CEO of E.ON Interactive, a boutique award-winning creative interactive design agency in Silicon Valley. He holds an MBA from Stanford’s Graduate School of Business and a B.A. from Columbia University. Adam also has a background in performance magic and is currently on the executive team organizing an international conference on how performance magic inspires creativity in technology and science. 

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