India's Semiconductor Ambition Gains Momentum
SEMICON India 2026's opening day marked a pivotal moment for the nation's semiconductor industry, signaling a decisive shift from policy pledges to tangible production. Five years after India committed substantial resources and policy support to foster a domestic chip manufacturing ecosystem, concrete projects are now moving into commercial operation, attracting billions in investments, and forging critical partnerships.
New Facilities Launched by Prime Minister Modi
Prime Minister Narendra Modi virtually inaugurated two significant semiconductor facilities, underscoring India's growing manufacturing capabilities. The first was Continental Device India Pvt. Ltd. (CDIL) Semiconductor's expanded Assembly, Testing, Marking and Packing (ATMP) plant in Mohali. Approved in August 2025, this facility will produce high-power discrete semiconductor devices like MOSFETs, IGBTs, Schottky bypass diodes, and transistors, utilizing both silicon and silicon carbide. These components are vital for automotive electronics, including EVs and charging infrastructure, renewable energy systems, and communication infrastructure.
The second inauguration was for Suchi Semicon's Outsourced Semiconductor Assembly and Test (OSAT) facility in Palsana, Surat, Gujarat. This project, which received Cabinet approval in May 2026 with Rs 868 crore in support, has already commissioned its Class 10K and 100K cleanrooms, made its first customer shipment, and established a technology collaboration with Japan's ROHM Semiconductor.
During the inaugurations, Prime Minister Modi emphasized India's readiness to become a trusted global hub for chip manufacturing, stating that "The world needs new and trusted locations for chip manufacturing, and India is preparing itself for this."
Major Investment from Applied Materials
Further boosting confidence in India's semiconductor prospects, US-headquartered Applied Materials announced a substantial investment of $5 billion in India over the next decade. This commitment, part of their "Applied Materials India Vision 2035," aims to deepen the company's research and development presence, accelerate the local ecosystem, and expand India's talent pool. The plan includes developing a new 140-acre advanced semiconductor research park, featuring cleanroom capabilities, engineering expertise, and collaborative R&D with customers and suppliers.
Tata Electronics Forges Strategic Partnerships
The conference also highlighted the role of strategic collaborations in building India's semiconductor value chain. Tata Electronics announced a series of key partnerships aimed at strengthening various aspects of the ecosystem:
- Nexperia: A strategic partnership covering wafer fabrication, semiconductor assembly and testing, technology collaboration, and broader ecosystem development to enhance supply-chain resilience.
- Fujifilm: Collaborating to accelerate the semiconductor materials ecosystem in India through the localization of critical raw materials and developing a resilient supply chain around Tata Electronics’ Dholera fab.
- Besi: Aimed at bolstering advanced semiconductor packaging capabilities at Tata Electronics’ packaging facility in Jagiroad, Assam, supporting the growth of India’s OSAT ecosystem.
- Semiconductor Laboratory: Joint efforts focused on chip design, process technologies, supply-chain localization, and talent development for semiconductor indigenization.