Semiconductors Made in India: Current Production Landscape

When it comes to Semiconductors tiny electronic components that power everything from smartphones to cars, many assume they’re all made abroad. But India is quietly building its own chip‑making capability.

Key Takeaways

• India has three operational semiconductor fabs and several under construction.
• The government’s Production‑Linked Incentive (PLI) scheme is the main catalyst.
• Current production focuses on analog, RF, and specialty wafers rather than high‑end logic chips.
• Major players include TataGroup, HindustanSiliconWorks, and a joint venture with Taiwan’s Powerchip.
• A robust ecosystem of design houses and testing labs supports the fab ecosystem.

Where Are Indian Fabs Located?

Most of the fab footprint sits in two tech hubs: Bangalore and Hyderabad. TataGroup’s Advanced Semiconductor Manufacturing (ASM) facility in Hyderabad started pilot production in 2023, while HindustanSiliconWorks runs a 2‑step fab near Chennai that focuses on analog devices. The newest entrant, a joint venture between Taiwan’s Powerchip and the state government of Gujarat, broke ground near Ahmedabad in early 2025 and is slated to ship its first 200mm wafer in 2027.

What Types of Chips Are Being Made?

India’s fabs specialise in:

• Analog and mixed‑signal ICs - used in power converters, sensors, and automotive electronics.
• RF front‑end modules for 5G and IoT devices.
• Discrete components such as thyristors and MOSFETs.
• Specialty silicon‑on‑insulator (SOI) wafers for defence applications.

High‑performance logic chips (the kind found in smartphones) still rely heavily on imports from Taiwan, South Korea, and the United States. However, the Indian ecosystem is rapidly expanding its design capabilities, meaning a larger share of those logic designs could be fabricated locally in the next five years.

Government Boost: The PLI Scheme

The Production‑Linked Incentive (PLI) programme, announced in 2021, earmarks up to $10billion for semiconductor manufacturing, testing, and design. It offers:

• Cash incentives of up to 30% on capital expenditure.
• Tax holidays for the first five years of operation.
• Subsidised power and water for fab zones.

Companies that meet annual output targets qualify for additional rebates. This financial safety net has convinced global players like Powerchip and Taiwan Semiconductor Manufacturing Co. (TSMC) to explore joint ventures, even if actual production lines are still in the planning phase.

Major Players and Their Roles

Company	Focus Area	Current Status
TataGroup (ASM)	Analog & RF	Pilot production 2023, volume ramp‑up 2024‑25
HindustanSiliconWorks	Discrete & power devices	Fully operational 2022
Powerchip‑Gujarat JV	200mm wafer fab	Construction 2025, first wafers 2027
Foxconn India	Assembly & testing	Test line operational 2024
ISRO	Space‑grade silicon	Limited runs for satellites

Design Ecosystem - From Concept to Chip

While fabs handle the physical silicon, India’s design houses such as Saankhya Labs, Mass Tech, and the research arm of Indian Institute of Technology (IIT) Madras create the blueprints. In 2024, Indian designers filed over 1,200 design patents, a 25% rise from the previous year. This design strength feeds the fabs, ensuring a steady flow of locally‑originated IP.

Challenges Still Ahead

Even with the PLI boost, the sector wrestles with:

• Skilled talent shortage - especially in advanced lithography.
• High utility costs - water‑intensive processes strain local supplies.
• Supply‑chain dependencies for raw silicon and photoresist chemicals.
• Global geopolitical risks that can affect equipment imports.

Addressing these requires coordinated effort between government, academia, and industry, something the newly formed National Semiconductor Mission aims to achieve.

Future Outlook - What to Expect by 2030

Analysts from the Indian Brand Equity Foundation (IBEF) project that India could reach an annual fab capacity of 30,000wafer‑equivalents by 2030, enough to supply domestic demand for consumer electronics and automotive chips. If the PLI scheme maintains its funding, the country may also become a regional hub for low‑cost analog production, competing with Vietnam and Thailand.

Quick Checklist for Readers

• Identify the three active fabs: TataASM, HindustanSilicon, Powerchip‑Gujarat.
• Know the focus: analog, RF, discrete, and specialty wafers.
• Understand the PLI incentives and eligibility criteria.
• Watch for upcoming fab announcements in Gujarat and Karnataka.
• Consider local design partnerships if you need custom ASICs.