India is fast-tracking its semiconductor sector with plans for multiple new plants, aiming to enhance self-reliance, create employment, and establish a foothold in global chip markets amid strategic importance.
India is accelerating the build-out of its semiconductor industry as it seeks to cut reliance on imported chips and strengthen its position in advanced manufacturing. According to a report by EQ Mag Pro, the push is being framed as part of a wider effort to deepen technological self-reliance and support the government’s vision of a “Viksit Bharat”, or developed India.
Prime Minister Narendra Modi has described chips as essential to modern technology, with uses spanning smartphones, computers, vehicles, telecoms, artificial intelligence, industrial machinery, defence systems and new energy platforms, EQ Mag Pro reported. That makes semiconductors more than a commercial priority: they are now a strategic input for economic security and national capability.
The country has already crossed an important threshold. EQ Mag Pro said three semiconductor plants are operating and have begun exporting, marking a shift from policy ambition to commercial output. That matters because domestic production, even at an early stage, can start to reduce exposure to volatile global supply chains while giving India a foothold in international chip markets.
The expansion path remains substantial. EQ Mag Pro reported that the Prime Minister expects another five to eight semiconductor plants to come up over the next seven to eight years. If that materialises, India would be building not just fabrication capacity but a broader industrial ecosystem covering assembly, testing, packaging, design, materials, logistics and equipment support.
Earlier approvals show how quickly the policy framework has moved. The Times of India reported in March 2024 that the Union Cabinet cleared three semiconductor manufacturing projects, including Tata Group’s first chip fabrication plant with Taiwan’s Powerchip Semiconductor Manufacturing Corp in Gujarat. Business Standard said the package also included a semiconductor assembly and test unit in Morigaon, Assam, with the projects then expected to begin construction within 100 days.
The industrial stakes are high. Semiconductors are critical to mobile devices, electric vehicles, data centres, renewable energy systems and factory automation, so domestic capacity could help electronics manufacturers secure supply and plan production more reliably. It could also draw investment into related areas, from research and development to component production and specialist services.
Employment is another significant benefit. Chip plants require engineers, process specialists, materials scientists, technicians and quality-control teams, creating demand for skilled labour and more specialised training. Over time, a larger domestic chip base could help India move further up the technology value chain and strengthen its role in global supply networks.
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