Prime Highlight
- India’s semiconductor industry is projected to reach $100–110 billion by 2030, fueled by strong policy support and rising demand.
- Key players including CG Power, Kaynes, Dixon, BEL, Tata, and MosChip are spearheading large-scale projects to establish a domestic chip ecosystem.
Key Facts
- CG Power’s ₹7,600 crore OSAT facility in Sanand is in pilot production, while Kaynes Semicon will roll out India’s first made-in-India chip by October 2025.
- The government has rolled out a ₹76,000 crore incentive scheme and a $2.7 billion plan to attract $7 billion in investments and create jobs.
Background
By 2030, India’s semiconductor sector is expected to climb to a valuation of $100–110 billion, driven by rapid growth. In early September at Semicon India 2025, companies and government leaders emphasized significant steps underway to create a robust local chip ecosystem.
CG Power opened India’s first OSAT (Outsourced Semiconductor Assembly and Test) facility in Sanand, Gujarat, with an investment of ₹7,600 crore. The plant is already in pilot production and will begin full operations by the end of 2025. According to Kaynes Technology, its division, Kaynes Semicon, will introduce the first Made-in-India semiconductor chip by October 2025. Its ₹3,300 crore plant will produce up to 60 lakh chips per day.
Dixon Technologies is spending 2.49 lakh crore on a huge display plant to drive the local production. Bharat Electronics (BEL) has partnered with Tata Electronics to aid in the production of chips. MosChip Technologies, based in Hyderabad, launched a new platform combining AI and IoT to help develop smart devices.
To enhance this expansion, the government has introduced a 76,000 crore incentive scheme and a new $2.7 billion plan to bring in investments of $7 billion and to generate jobs. Projects valued at 1.60 lakh crore have already been sanctioned under the Indian Semiconductor Mission.
India has also established a 5 -7 year roadmap to initiate production of 7nm chips with the help of IBM and IMEC. With a powerful policy backing and increased demand, India is considering becoming a semiconductor center in the world.