Four Indian semiconductor plants will begin commercial operation this year, with the goal of meeting 75% of domestic chip demand by 2029.

2026/02/05

TechNews Financial News Report
January 29, 2026
Author: TechNews Editorial Team

With surging global demand for semiconductors, India is actively building its own semiconductor industry and plans to begin commercial production this year. According to the latest progress report on India's semiconductor mission, four semiconductor factories are expected to commence commercial operations this year, with trial production beginning in 2025. Amitesh Kumar Sinha, Joint Secretary of the Ministry of Electronics and Communications Technology, stated that the mission has progressed rapidly since its launch in 2022, having trained 65,000 professionals, exceeding the ten-year target of 85,000.

India's semiconductor industry encompasses not only design but also manufacturing. According to the plan, by 2029, India hopes to design and manufacture 70% to 75% of its domestically needed chips. Achieving this goal will rely on India's design capabilities in six core areas: computing systems, wireless frequencies, network security, power management, sensors, and memory.

Against this backdrop, India's Kaynes Semicon has already launched its semiconductor factory in Gujarat and will begin production in November 2024. Raghu Panicker, the company's CEO, emphasized that packaging and testing processes are crucial for semiconductor production; this process involves more than just putting wafers into boxes, but rather a manufacturing process requiring 10 to 12 steps.

Furthermore, India's semiconductor ecosystem is expanding rapidly, with the government having committed over $70 billion in investment, potentially reaching $150 billion with the growth of artificial intelligence. These investments have attracted global companies like ASML to establish bases in India, further boosting design capabilities and policy stability.

Looking ahead, India aims to become a leading global semiconductor design nation by 2035 and achieve advanced manufacturing technologies such as 3-nanometer wafer production by 2032. These efforts demonstrate India's ambition in the global semiconductor industry and lay a solid foundation for future development.

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