NEW DELHI: India has attracted investment commitments worth up to $12 billion from global and domestic companies within months of introducing its latest semiconductor policy, strengthening the country’s push to establish a large domestic chip manufacturing ecosystem.
The commitments include investments from companies involved in semiconductor equipment, materials and specialised chemicals. The projects are expected to be implemented over the next two to three years.
The fresh interest follows India’s announcement in July of a $13.4 billion semiconductor fund, aimed at expanding an earlier $10 billion support programme. The government has been using financial incentives to attract major semiconductor manufacturing and assembly projects to the country.
Several projects supported under the earlier programme have already moved into commercial production. Capacity being created through existing projects has also attracted advance demand, indicating growing interest in locally manufactured semiconductor products.
Prime Minister Narendra Modi also highlighted India’s large pool of engineering talent and its semiconductor policies while addressing the industry gathering in New Delhi, seeking greater participation from international investors.
Among the major announcements, semiconductor equipment manufacturer Applied Materials has committed $5 billion over the next decade for its India operations. Lam Research has announced plans to invest around $1 billion in a manufacturing facility in the country.
Micron is also preparing to expand its semiconductor operations in India, with plans to test and assemble hundreds of millions of chips annually from 2027 following the start of production at its local facility.
The Tata Group’s electronics and semiconductor businesses announced five agreements covering different parts of the chip supply chain. These include cooperation with Nexperia on wafer manufacturing, assembly and testing, along with a partnership with Fujifilm for local production of critical materials.
The announcements indicate a broader effort to build an integrated semiconductor ecosystem covering manufacturing, assembly, equipment and raw materials within India.
