NEW DELHI: This month, India’s semiconductor push gathered momentum with Tata Electronics’ pact with Dutch major ASML and two new projects, a mini/micro-LED display fabrication unit in Dholera and an OSAT packaging facility in Surat.
With nearly a dozen semiconductor initiatives now underway, how close is India to becoming self-reliant in chips?
How does Tata Electronics' pact with ASML and two new chip plants change the ecosystem in India?
Tata Electronics’ pact with ASML, the world’s leading maker of chip lithography equipment, marks a key step in India’s entry into global semiconductor manufacturing by securing access to critical technology. Alongside the two projects announced in May—a micro-LED display fab in Dholera and an OSAT packaging facility in Surat with a combined investment of ₹3,936 crore—the move broadens India’s semiconductor base.
The micro-LED fab positions India in advanced display manufacturing, while the OSAT unit helps plug a packaging gap, reducing dependence on Taiwan and Malaysia. Together, the projects strengthen supply chains and push India towards a more integrated chip ecosystem.
What is India’s chip capacity and how many plants does it now have?
India now has 12 semiconductor initiatives under the India Semiconductor Mission, with proposed investments of about ₹1.64 trillion. These include Tata Electronics’ fab in Dholera, Micron’s ATMP facility in Sanand, and several design and packaging units.
Under the Tata Electronics-ASML pact, the Dutch company will supply lithography equipment for Tata Electronics’ upcoming fab in Dholera. However, most projects remain in early stages. In the near term, India’s output will be concentrated in assembly, testing and mid-range chips rather than advanced nodes.
While the new projects broaden the ecosystem, self-sufficiency will depend heavily on execution.
How does India compare with semiconductor ecosystems in China, South Korea and Taiwan?
India’s semiconductor ecosystem remains nascent compared with Asian rivals. Taiwan’s TSMC dominates advanced chipmaking below 5 nanometres (nm), South Korea’s Samsung leads in memory chips and displays, while China has invested heavily in fabs and packaging.
India is positioning itself as an alternative hub for mid-range chips, packaging and compound semiconductors, backed by a large domestic market and policy incentives. The roughly ₹1 trillion India Semiconductor Mission is a significant start, but remains modest compared with the US CHIPS Act, valued at $52 billion, and China’s estimated $140 billion semiconductor spending over the past decade.
How far is India from building a complete semiconductor ecosystem and becoming self-reliant?
Most Indian projects are focused on 28 nm and higher nodes used in automotive, telecom, lighting, consumer electronics and defence. But large-scale commercial production is unlikely before 2029-30.
Current investments are concentrated in assembly, testing and niche segments such as mini/micro-LEDs. While these projects can reduce import dependence, a fully integrated semiconductor ecosystem will require a much deeper network of fabs, packaging units, design houses and reliable infrastructure, especially uninterrupted power and water supply.
India is building semiconductor clusters in Gujarat, Assam, and Uttar Pradesh, among other states, but execution timelines remain long. The country is still at the start of what is likely to be a decade-long effort.
How critical are chips today? Can India’s ecosystem help de-risk the country from global shocks?
Semiconductors power everything from smartphones and cars to defence systems and AI data centres. Recent disruptions, including the pandemic-era chip shortage and geopolitical tensions, exposed the fragility of global supply chains.
For India, developing a domestic semiconductor ecosystem is both an economic and strategic imperative. While the new projects will not make the country self-sufficient immediately, they expand capabilities in areas such as advanced displays and packaging, helping reduce import dependence.
Over time, a stronger domestic manufacturing base could help India cushion itself against global disruptions, support local industry and eventually emerge as a supplier within global chip supply chains. The key challenge will be execution — scaling projects quickly and achieving global manufacturing standards.