Factories, funding and fresh faces: India's chip dream getting real

India has long wanted to become a semiconductor manufacturing hub. Five years after putting money and policy behind that ambition, the industry is beginning to respond.

The strongest signal came on Day 1 of SEMICON India 2026, which delivered the conference’s biggest opening yet. Projects that were once only announcements are now moving into commercial production, companies are committing billions of dollars, and partnerships are being forged to build the ecosystem India needs for an industry it is still creating from the ground up.

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Two more projects go commercial

Prime Minister Narendra Modi virtually inaugurated the Assembly, Testing, Marking and Packing facility of Continental Device India Pvt. Ltd. (CDIL) Semiconductor in Mohali and Outsourced Semiconductor Assembly and Test (OSAT) facility of Suchi Semicon, located at Palsana in Surat, Gujarat.

Approved in August 2025, CDIL has expanded its discrete semiconductor manufacturing facility in Mohali. The facility will manufacture high-power discrete semiconductor devices such as MOSFETs, IGBTs, Schottky bypass diodes and transistors, in both silicon and silicon carbide. These devices will be used in automotive electronics, including EVs and charging infrastructure, renewable energy systems, power conversion applications, industrial applications and communication infrastructure.

Suchi Semicon’s OSAT project in Palsana received Cabinet approval in May this year, with Rs 868 crore in approved support. Since its incorporation, the company has commissioned its Class 10K and 100K cleanrooms, completed its first customer shipment, and established a technology collaboration with Japan’s ROHM Semiconductor.

During the virtual inauguration, Modi said, “The world needs new and trusted locations for chip manufacturing, and India is preparing itself for this.” He added that the government was taking steps to make the country a preferred destination for semiconductor manufacturing. “When a country like ours succeeds in a critical industry, it strengthens the global supply chain.”

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Applied Materials commits $5 bn to India

This growing confidence is also reflected in the scale of investments companies are now willing to make in India. US-headquartered Applied Materials announced plans to invest $5 billion in India over the next 10 years.

The proposed investment will focus on deepening Applied Materials’ R&D presence in India, accelerating the ecosystem and growing the country’s talent base. It will also include a new 140-acre advanced semiconductor research park that will bring together cleanroom capabilities, engineering expertise and collaborative R&D with customers and suppliers.

“Today, we are announcing Applied Materials India Vision 2035 — a $5 billion investment over the next decade to accelerate and integrate India’s semiconductor ecosystem into the global value chain,” said Prabu Raja, President of the Semiconductor Products Group, during the inauguration keynote.

Tata Electronics in strategic partnerships

The next layer of India’s semiconductor push is taking shape through partnerships. The first day of the conference also saw Tata Electronics announce a series of strategic collaborations.

Tata Electronics’ MoU with Nexperia is a strategic partnership spanning wafer fabrication, semiconductor assembly and testing, technology collaboration and ecosystem development to strengthen semiconductor supply-chain resilience and manufacturing capabilities in India.

Tata Electronics is also collaborating with Fujifilm to accelerate the semiconductor materials ecosystem in India through the localisation of critical raw materials and the development of a resilient supply chain around Tata Electronics’ Dholera fab.

The MoU with Besi is aimed at strengthening advanced semiconductor packaging capabilities at Tata Electronics’ packaging facility in Jagiroad, Assam, and supporting the growth of India’s OSAT ecosystem.

The company is also collaborating with the Semiconductor Laboratory for semiconductor indigenisation through joint efforts in chip design, process technologies, supply-chain localisation, and talent development.