Lok Sabha Question No. 6088 (UNSTARRED), answered on 2026-04-01
Subject: Encouraging Semiconductor Manufacturing
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Dr. Manna Lal Rawat

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION NO. 6088

TO BE ANSWERED ON: 01.04.2026

## ENCOURAGING SEMICONDUCTOR MANUFACTURING

## † 6088.  DR. MANNA LAL RAWAT:

Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:

- (a) the steps taken by the Government so far to encourage semiconductor manufacturing in the country;
- (b) the number of semiconductor manufacturing units currently set up or being set up in the country, State-wise;
- (c)  the  financial  assistance  or  incentives  approved  by  the  Union  Government  under  the Semiconductor Mission to promote semiconductor production;
- (d) the total value of domestic and foreign investment made in said sector so far along with the names of companies signed Memorandum of Understandings (MoUs) for investment; and
- (e) the estimated number of direct and indirect jobs likely to be created in the country through semiconductor manufacturing?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI JITIN PRASADA)

- (a) to (e): India's electronic manufacturing strategy is driven by the Hon'ble Prime Minister's vision of AtmaNirbhar Bharat and Making India a  global manufacturing hub. The Government adopted a structured and targeted policy for electronics manufacturing across the entire value chain including semiconductors.

As a result of these policies, electronics manufacturing in India has expanded significantly in the last 11 years. It can be seen from the following statistics:

| #                                   | 2014-15        | 2024-25      | Remarks           |
|-------------------------------------|----------------|--------------|-------------------|
| Production of electronics goods (₹) | ~1.9 Lakh Cr   | ~12 Lakh Cr  | Increased 6 times |
| Export of electronics goods (₹)     | 38 thousand Cr | ~3.3 Lakh Cr | Increased 8 times |

| Production of mobile phones (₹)   | 18 thousand Cr          | 5.45 Lakh Cr              | Increased 28 times   |
|-----------------------------------|-------------------------|---------------------------|----------------------|
| Export of mobile phones (₹)       | 1,500 Cr.               | 2 Lakh Cr                 | Increased 127 times  |
| Mobile Phone imported (units)     | 75% of the total demand | 0.02% of the total demand |                      |

## Semicon India Programme

Semiconductors is a foundational and strategic industry. Semiconductors are used in almost every device.

To  promote  the  development  of  its  manufacturing  ecosystem  in  India,  the  Government launched    Semicon  India  Programme  in  January  2022.  It  aims  at  developing  a  complete ecosystem,  ranging  from  design,  fabrication,  assembly,  testing,  packaging  and  module manufacturing.

In  a  short  span  of  four  years,  the  Government  has  approved  10  projects  with  investment commitments of about ₹1.6 lakh crore. Commercial production from two plants (Micron and Kaynes) has commenced with 2 more plants to start commercial production this year.

The details of the approved Semiconductor manufacturing units are placed at Annexure I.

## Developing India's chip design ecosystem:

Government is developing India's chip design ecosystem in two ways:

## 1. Supporting Indian design engineers through chip design tools

In a one of its kind initiative in the world, Government has provided cutting edge chip design tools from 8 different companies to 315 universities at no cost. So far, their usage has exceeded 200 lakh hours.

Using these tools 211, chips have been taped out by 75 institutions across India including 149 chips at 180nm, SCL Mohali and 62 chip at overseas foundries.

## 2. Supporting Indian design companies through grant, free design tool and fabrication support:

Government has approved 24 projects for the design of semiconductor chips and SoCs. These projects address critical sectors such as video surveillance, drone detection, energy metering, microprocessors, satellite communications, and broadband and IoT SoCs.

Out of 24 projects, 14 companies have raised venture capital funding of more than Rs 650 Cr to scale up and productize their solutions. Seven (7) chips have been successfully fabricated at various nodes including advanced nodes such as 12 nm.

Further, to enhance bilateral collaboration on opportunities to advance resilient semiconductor supply chains and leverage complementary strengths, the Government has entered into MoU with United States, Japan, European Union, Singapore and Netherlands.

## Employment generation

The  growth  of  the  electronics  manufacturing  sector  has  led  to  substantial  employment generation. As per industry estimates, it supports around 25 lakh jobs, including direct and indirect employment.

Out of this, the mobile phone manufacturing sector alone supports around 12 lakh jobs, across manufacturing, logistics, supply chains and allied services.

Apart  from  this,  the  Government  is  implementing  flagship  schemes  to  further  boost employment by attracting investments.

Under the India Semiconductor Mission (ISM), 10 semiconductor units are under construction. As a  foundational  industry,  semiconductor  manufacturing  is  expected  to  have  a  cascading impact  on  employment  generation  across  the  supply  chain  and  allied  sectors,  leading  to significant indirect job creation.

Similarly,  under Electronics  Component Manufacturing Scheme (ECMS), 249 applications have been received for  components,  base  materials  and  capital  equipments  such  as  PCBs, capacitors, laminates etc.

India Semiconductor Mission 2.0: Building on the success of Semicon India Programme and further enhance the capabilities in semiconductors, Hon'ble FM, in the Union Budget 2026 -27, announced India Semiconductor Mission 2.0 for manufacture of equipment and materials, design full stack, Indian IP and fortify supply chains.

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## Details of approved semiconductor manufacturing projects:

1. Micron Technology Inc. is establishing semiconductor manufacturing facility in Gujarat with an investment of Rs.22,516 crore. Micron's facility in India will enable assembly and test manufacturing for both DRAM and NAND products and address demand from domestic and international markets. The production capacity is around 14 million units per week.
2. Tata Electronics Private Limited (TEPL) is establishing semiconductor manufacturing facility in Gujarat with an investment of Rs. 91,526 crore. The fab facility will be set up in technology partnership with PSMC, Taiwan. The production capacity of the project would be around 50,000 wafer starts per month (WSPM).
3. Tata Electronics Private Limited (TEPL) is establishing semiconductor manufacturing facility in Assam  with  an  investment  of  Rs.27,120  crores.  The  facility  will  use  indigenous  semiconductor packaging technologies with a production capacity of 48 million units per day.
4. CG Power and Industrial Solutions Limited is establishing semiconductor manufacturing facility in Gujarat with an investment of Rs. 7,584 crore. The facility will be set up as a joint venture partnership with Renesas Electronics America Inc., USA, and STARS Microelectronic, Thailand. The Technology would  be  provided  for  this  facility  by  Renesas  Electronics  Corporation,  Japan  and  STARS Microelectronic, Thailand. The production capacity would be around 15.07 million units per day.

Annexure-I

5. Kaynes Technology India Limited (KTIL) is establishing semiconductor manufacturing facility in Gujarat with an investment of Rs. 3,307 crores for Wire bond Interconnect, Substrate Based Packages. The Technology would be provided by ISO Technology Sdn. Bhd. and AOI Electronics Co. Ltd. (AOI). The facility will have the capacity to produce more than 6.33 million chips per day.
6. Vama  Sundari  Investments  (Delhi)  Private  Limited  (VSIPL) is  establishing  semiconductor manufacturing facility in Uttar Pradesh with an investment of Rs 3,706 crores for display driver ICs (DDIC)  using  Gold  (Au)  Bump  technology  along  with  chip  probing  facilities  and  die  processing services. The Technology would be provided by Hon Hai, Taiwan. The facility will be set up as a joint venture partnership between VSIPL and Foxconn, India. The production capacity would be around 20K wafers per month/36 million chips per month.
7. 3D Glass Solutions Inc. (3DGS) is establishing semiconductor manufacturing facility in Odisha with an investment of Rs. 1,943 crores. The plant will handle the assembly of packaged products such as  Flip  Chip  Ball  Grid  Array  (FCBGA)  assembly,  Radio  Frequency  System  in  Package  (RF  SiP), Antenna in Package System in Package (AiP SiP), glass interposers with passives and silicon bridges and 3D Heterogeneous Integration (3DHI) modules. The Proposed installed capacity for glass panel substrate  production,  assembly  and  3DHI is  around 5800 panels per month, 4.20 million units per month, and 1100 units per months respectively.
8. SiCSem Private Limited is establishing semiconductor manufacturing facility in Odisha with an investment of Rs. 2,066 crores. The facility will be set up in technology partnership with Clas-SiC Wafer Fab Ltd. for SiC fab and Continental Device India Pvt. Ltd. for packaging. The  production capacity is 5,000 wafers/month, and the packaging capacity is 8 million units/month.
9. Continental Device India Private Limited (CDIL) is expanding its semiconductor manufacturing facility  in  Punjab,  with  an  investment  of  Rs.  117  crores.  The  facility  will  manufacture  high-power discrete semiconductor devices such as MOSFETs, IGBTs, Schottky Bypass Diodes, and transistors, both  in  Silicon  and  Silicon  Carbide.  The  production  capacity  will  be  around  158.38  million units/annum.
10. Advanced  System in Package Technologies Private Limited (ASIP) is establishing semiconductor manufacturing facility in Andhra Pradesh , with an investment of Rs. 480 crores. The facility will be set up in technology partnership with APACT Co. Ltd, South Korea. The production capacity of the facility would be around 96 million units/annum.

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