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India is a significant player in the global semiconductor industry and has been actively working to develop its domestic semiconductor manufacturing capabilities in recent years.
The Indian government's Ministry of Electronics and Information Technology (MeitY) forecasts that the country's demand for semiconductors will rise to $70-$80 billion by 2026 in response to the rising consumption of digital devices and electronic goods.
One of the main drivers of this effort has been the government's "Electronics System Design and Manufacturing" (ESDM) policy, which aims to increase domestic electronics production in India and reduce the country's reliance on imported semiconductors.
As part of this policy, the government has implemented several initiatives to support the development of the domestic semiconductor industry, including tax incentives, grants, and infrastructure development. It has also established several semiconductor manufacturing parks and clusters to encourage growth.
In addition, India has attracted several global semiconductor companies to set up operations in the country, including Intel, Samsung, and TSMC. These companies have established research and development centers and manufacturing facilities in India, which has helped to boost the country's domestic semiconductor capabilities.
In December 2021, India announced that it would implement a production-linked incentive (PLI) scheme with a budget of approximately ten billion dollars to encourage domestic manufacturing of semiconductors and displays. Additionally, it announced financial support for a design-linked initiative (DLI) scheme, which aims to drive global and domestic investment related to design software, intellectual property rights, and other related topics.
Despite these efforts, India still faces several challenges to becoming a significant player in the global semiconductor industry. These include a need for domestic technology and expertise and the need to overcome regulatory and infrastructure barriers.
Overall, India's role in the global semiconductor industry is growing, but it still has a long way to go to become a significant player. However, its efforts to develop its domestic semiconductor manufacturing capabilities and attract global companies to set up operations in the country are essential steps in this direction.
Here is a list of some of the semiconductor plants that are located in India:
Intel India: Intel has several semiconductor manufacturing and research and development facilities in India, including in the cities of Bengaluru, Hyderabad, and Chandigarh.
Samsung India: Samsung has several semiconductor manufacturing and research and development facilities in India, including in the cities of Noida and Gurgaon.
TSMC India: TSMC has established a research and development center in Bengaluru, focusing on developing semiconductor technology for various applications.
Wafer Fab City: This is a semiconductor manufacturing cluster located in Hyderabad. It is home to several semiconductor companies, including Intel, Samsung, and TSMC.
Semiconductor Complex: This semiconductor manufacturing cluster is located in Chandigarh. It is home to several semiconductor companies, including Intel and Samsung.
Fab City: This is a semiconductor manufacturing cluster located in Hyderabad. It is home to many semiconductor companies, including Intel, Samsung, and TSMC.
National Semiconductor Wafer Fab: This is a government-owned semiconductor manufacturing facility in Hyderabad. It is operated by the Indian Space Research Organization (ISRO).
Semiconductor Manufacturing International Corporation (SMIC) India: SMIC is a Chinese semiconductor company that established a research and development center in Bengaluru.
NOTE 1: This is just a partial list of the semiconductor plants in India.
NOTE 2: The latest American decision to restrict the export of high-end chips to China prompted semiconductor companies to consider moving some of their chipmaking capabilities to nearby Vietnam and India. When exporting advanced semiconductors or manufacturing equipment related to those exports to China, the United States started requiring companies to obtain licenses in October. In addition, if these companies want to use American equipment to produce specific high-end chips for sale in China, they need to get approval from the federal government in Washington.