India has secured $12 billion in investment commitments from global and domestic investors, marking a significant step in its quest to establish a robust semiconductor manufacturing ecosystem. The announcements were made at a leading semiconductor industry event in New Delhi, where Technology Minister Ashwini Vaishnaw highlighted the rapid progress following the introduction of a new semiconductor policy.
The event attracted major players in the semiconductor industry, with Applied Materials Inc. committing to a $5 billion investment over the next decade. Lam Research Corp. also announced plans to invest $1 billion in a local manufacturing facility. These commitments come on the heels of India’s recent $13.4 billion semiconductor fund, which aims to bolster an earlier $10 billion subsidy program that has already facilitated the entry of companies like the Tata Group and Micron Technology Inc. into the Indian market.
Micron, which has begun production at its local plant, plans to test and assemble hundreds of millions of chips in India by 2027, according to CEO Sanjay Mehrotra. The Tata Group's electronics and chip unit signed five agreements across the semiconductor supply chain, including a partnership with Nexperia BV for semiconductor wafer manufacturing and assembly in Gujarat and Assam. Tata Electronics also announced a collaboration with Fujifilm Corp. to produce critical raw materials locally, aiming to develop a supply chain around its Dholera unit in Gujarat.
Randhir Thakur, CEO of Tata Electronics, emphasized the rapid development of India’s semiconductor ecosystem, stating, “The question of whether we can make chips in India has changed to how fast and how deep we can build the semiconductor ecosystem in India. The answer is: deeper than anyone would have thought and sooner than anyone could have predicted.”
Some companies, such as Micron and Murugappa Group, are already in commercial production under the previous chip policy. Minister Vaishnaw noted that all current production is fully booked, as is the capacity being created. This underscores the high demand and potential for growth in India’s semiconductor sector.
Earlier on Thursday, Prime Minister Narendra Modi addressed the conference, appealing to global investors by highlighting India's large pool of engineering graduates and favorable semiconductor policies. His remarks aimed to reinforce India’s position as an attractive destination for semiconductor manufacturing and investment.
