On May 15, 2025, India approved its sixth semiconductor manufacturing facility, a joint venture between HCL and Foxconn, as part of the India Semiconductor Mission. According to the central government, five additional semiconductor units are already in advanced stages of construction.
As part of its broader strategy to strengthen domestic chip production, India is actively seeking foreign investments to support the development and design of semiconductor fabs, ATMP units, and related infrastructure.
India Briefing looks at the latest developments impacting India’s semiconductor ambitions.
Some updates
- India is set to launch its first domestically produced semiconductor chip by the end of 2025, using 28 to 90 nanometre technology, according to Union Minister for Electronics and IT, Ashwini Vaishnaw. As of May 2025, six chip fabrication units are under development, marking a major step forward in the country’s semiconductor mission, which was initiated in 2022. The initiative targets a critical segment that comprises around 60 percent of global semiconductor demand, focusing on applications in the automotive, telecom, power, and railway sectors. Vaishnaw also stressed the need to complement manufacturing with the growth of indigenous intellectual property, chip design, and technical standards to strengthen India’s position in the semiconductor global value chain.
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On May 14, 2025, India’s Union Cabinet approved the establishment of an additional semiconductor manufacturing facility. This newly sanctioned plant is a joint venture between HCL and Foxconn, set to be located near Uttar Pradesh’s Jewar Airport within the Yamuna Expressway Industrial Development Authority (YEIDA) region. As outlined in the official announcement, the facility will produce display driver chips for mobile phones, laptops, automotive systems, PCs, and a wide range of other display-equipped devices. The plant will have a design capacity of 20,000 wafers per month. This latest unit has an INR 37 billion investment (US$433.6 million). Key ecosystem partners, including major equipment manufacturers like Applied Materials and Lam Research, and essential gas and chemical suppliers like Merck, Linde, Air Liquide, and Inox.
- As per a report published by Money Control, Renesas Electronics, a Japanese semiconductor manufacturer, is on track to complete its pilot Outsourced Semiconductor Assembly and Test (OSAT) facility in India by July 2025. This facility has been developed in collaboration with India’s Murugappa Group’s CG Power and Thailand’s Stars Microelectronics. It is expected to produce its first batch of chips by mid-2026. The main OSAT production plant, located in Sanand, Gujarat, is scheduled for completion by December 2026, with full-scale production expected to commence by October 2027. The facility is established with a US$222 million investment.
- According to a news report published by the The Edge Malaysia, Liew Chin Tong, Deputy Minister of Investment, Trade and Industry, Malaysia, on his visit to India on March 18, 2025, spoke on the country’s intention to be part of “India’s semiconductor story.” Liew pointed to India’s expertise in semiconductor equipment, assembly, and testing as key areas of collaboration. With domestic semiconductor market expected to triple from US$38 billion in 2023 to US$109 billion by 2030-Malaysia sees potential for deeper cooperation with India for the component manufacturing. Liew noted that several companies currently investing in India have long-standing operations in Malaysia, creating prospects for trilateral business partnerships and supply chain integration.
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The Yamuna Expressway Industrial Development Authority (YEIDA) has provided a new 48-acre land parcel for a semiconductor project. As per a Hindustan Times report on March 9, 2025, the newly designated land, located in Noida Sector 28, Uttar Pradesh, has been assigned to Vama Sundari Investments—a joint venture between the HCL Group and Foxconn. This location features critical infrastructure, along with presence of the Medical Device Park and other operational industries. The original land allotment was in Noida Sector 10. However, on March 6, 2025, YEIDA issued a revised letter of intent to Vama Sundari, officially offering the alternative plot in Noida Sector 28. The company plans to invest INR 37.06 billion (US$425 million) in setting up an outsourced semiconductor assembly and test (OSAT) facility and is expected to create approximately 4,000 jobs.
- According to various news reports published on March 5, 2025, India Semiconductor Mission (ISM), a central government body, has signed a fiscal support agreement with Tata Electronics and Tata Semiconductor Manufacturing for establishing a semiconductor facility in Dholera, Gujarat. Tata Electronics will invest over INR 910 billion (US$10.44 billion) to establish a semiconductor fabrication plant in Dholera’s Special Investment Regions (SIR) with a production capacity of 50,000 wafers per month. The central government, through ISM, will provide 50 percent financial support for eligible project costs. The project, approved by the union cabinet in February 2024, is expected to create over 20,000 direct and indirect skilled jobs within the country. Tata has partnered with Taiwan’s Powerchip Semiconductor Manufacturing Corporation for the plant, which will cater to global markets in automotive, computing, communications, and AI sectors.
