India's semiconductor industry is poised for a new peak, with daily chip production capacity expected to reach 75 million to 80 million units.

2026/03/20

TechNews Report
March 13, 2026
Author: TechNews Editorial Team

India's semiconductor ecosystem is undergoing a major transformation. According to Ashok Chandak, president of the India Electronics and Semiconductor Association (IESA) and SEMI India, India's chip production capacity is expected to reach 75 to 80 million chips per day by the end of this year or early next year, with the commissioning of new facilities. In an interview with ANI, Chandak stated that this capacity will come from multiple semiconductor projects that will begin production in phases. Once these factories are operational, India's chip assembly and testing capabilities will expand significantly.

Ashok Chandak pointed out that while some production will meet domestic demand, a considerable portion is expected to be exported. He emphasized that with the commissioning of these facilities, India's position in the global semiconductor value chain will change.

Currently, India's short-term activities are mainly focused on chip assembly and testing, rather than wafer manufacturing. For example, the recently commissioned Micron Technology facility operates as an ATMP (Assembly, Test, Mark, and Package) plant, also described as a smart packaging unit. Other projects under development, including those by Tata Electronics, Kaynes Technology, and CG Power and Industrial Solutions, will serve as OSAT (Outsourced Semiconductor Assembly and Test) facilities, performing similar assembly and testing work.

Ashok Chandak stated that the Micron plant will produce memory chips such as DRAM, NAND, and SSDs, which are used in multiple industries. With the increasing workloads in artificial intelligence, the demand for memory chips is rising, while industries such as smartphones, laptops, and automobiles still face supply constraints. Chips assembled and tested in India are expected to support applications including artificial intelligence systems, automobiles, laptops, and smartphones. Initially, these chips will primarily be in the 14nm to 28nm range, while the wafers themselves will still be sourced from overseas.

In its upcoming projects, Cairns Technology plans to assemble advanced power modules, including IGBTs and other power components, and manufacture printed circuit boards for electronic products. These components will serve industries such as automotive, industrial, consumer electronics, and defense. Tata Electronics is also preparing to operate an OSAT facility in Jagiroad, Assam, primarily producing power components and multi-chip modules for industrial and automotive applications. According to Chandak, the facility's capacity could exceed 50 million units per day.

CG Power's semiconductor project will focus on integrated circuits for industrial and automotive applications. This project will be implemented in two phases, ultimately potentially reaching a capacity of approximately 15 million units per day. With multiple projects proceeding simultaneously, Chandak stated that India is expected to strengthen its role in the global semiconductor ecosystem in the coming years.

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