Chip fabs don’t get built in a year. That reality has shaped how India’s semiconductor story is unfolding in 2026 — less a single flagship factory switching on overnight, and more a scattered constellation of fabrication, packaging, and design operations gradually stitching together across Gujarat, Assam, Karnataka, and Odisha. The India Semiconductor Mission has backed this with ₹76,000 crore in original funding, expanded through Semicon 2.0’s ₹1.27 lakh crore outlay announced in July 2026. Ten projects worth roughly ₹1.60 lakh crore have already been approved. The market itself is projected to nearly triple, from an estimated $45-50 billion in 2024-25 to $100-110 billion by 2030. None of this is happening at the cutting-edge — nobody in India is chasing 3nm chips yet — but the mature-node, packaging, and design layers are genuinely coming together. Here are ten companies at the centre of it.
1. Tata Electronics
Tata Electronics is building what will likely be remembered as the founding project of Indian semiconductor manufacturing: a ₹91,526 crore wafer fabrication plant in Dholera, Gujarat, developed jointly with Taiwan’s Powerchip Semiconductor Manufacturing Corporation. The facility is targeting 50,000 wafer starts per month at the 28nm node — deliberately not cutting-edge, but precisely the mature technology needed for automotive, industrial, and consumer IoT chips, which is where the bulk of actual demand sits. In May 2026, Tata signed a strategic agreement with Netherlands-based ASML to supply the advanced lithography equipment the 300mm wafer plant needs, with first silicon targeted for late 2026.
This is, by a wide margin, the largest single semiconductor investment in Indian history, and its success or failure will effectively determine whether India’s fab ambitions are credible or aspirational for the rest of the decade.
2. Micron Technology
Micron’s Sanand, Gujarat facility became the first operational plant of this entire mission cycle when Prime Minister Modi inaugurated it on February 28, 2026. Built at a cost of $2.75 billion, the plant handles Semiconductor Assembly, Test, and Packaging — turning imported DRAM and NAND memory wafers into finished chips destined for phones, laptops, and data centre equipment.
For global buyers navigating supply-chain resilience requirements, Micron Sanand now lets companies specify India-origin memory packaging to meet domestic content rules in markets like the US and Europe — a genuinely practical export advantage rather than just a symbolic milestone.
3. Kaynes Semicon
Kaynes Semicon, the semiconductor arm of Kaynes Technology, opened its OSAT facility in Sanand on March 31, 2026, backed by an investment of roughly ₹3,300 crore ($347.9 million). The plant made headlines that October when it shipped India’s first commercially manufactured multi-chip modules — 900 units integrating 17 dies into a single package — to US-based Alpha & Omega Semiconductor. Full mass production is targeted to scale toward 6.3 million chips per day.
Kaynes has evolved deliberately from an electronics manufacturing services company into a full-stack player spanning design, process engineering, and advanced packaging — a broader footprint than most of the OSAT-only names on this list.
4. CG Power and Industrial Solutions
CG Power runs a Renesas-aligned OSAT operation focused specifically on automotive-grade chip packaging, certified to the AEC-Q100 standard that automakers demand for anything going into a vehicle’s electronics. That’s a narrower, more specialised bet than the general-purpose packaging most other OSAT players pursue.
For EV powertrain manufacturers, ADAS developers, and vehicle body electronics buyers looking to diversify away from Taiwan-concentrated automotive chip packaging, CG Power’s Renesas partnership gives them a credible India-based alternative that’s already meeting the qualification bar the auto industry requires.
5. SPEL Semiconductor
SPEL has been in the semiconductor assembly and test business since well before this current wave of government-backed investment made it fashionable, with decades of experience in chip packaging behind it. It remains focused on assembly, testing, and packaging services for integrated circuits, though its financial performance has shown pressure in recent years — muted revenue growth and margin strain from client concentration and cyclical demand.
Even with those challenges, SPEL’s long institutional memory in Indian OSAT work makes it a useful benchmark for how far the newer, better-capitalised entrants like Kaynes and Micron still have to go to match decades of accumulated packaging expertise.
6. Tata Semiconductor Assembly and Test
Separate from Tata Electronics’ Dholera fab, Tata Semiconductor Assembly and Test is building a $3.2 billion assembly, testing, marking, and packaging facility in Assam — the country’s first major semiconductor project in the Northeast. Once operational, it’s expected to produce 48 million chips daily, serving automotive, electric vehicle, consumer electronics, and telecom segments.
Locating this facility in Assam rather than the more established Gujarat corridor is itself a deliberate policy signal, spreading semiconductor manufacturing capability geographically rather than concentrating it entirely in one state.
7. MosChip Technologies
MosChip holds a specific distinction: it was India’s first publicly traded fabless semiconductor company, founded in Hyderabad back in 1999, long before “chip self-reliance” became a national talking point. It employs over 1,300 engineers across India and Silicon Valley, working on turnkey ASICs, mixed-signal IP, and product engineering for automotive, consumer electronics, and telecommunications clients.
As a fabless player, MosChip doesn’t manufacture silicon itself — it designs chips and outsources fabrication elsewhere — which places it firmly in the design layer of India’s semiconductor ecosystem, the segment where the country has genuinely led globally for years, well ahead of its manufacturing ambitions.
8. Tata Elxsi
Tata Elxsi operates at the design end of the value chain, with deep exposure to embedded systems, automotive electronics, and semiconductor-adjacent engineering services rather than physical chip production. Its work increasingly touches chip-related design verification and R&D support for global semiconductor clients.
That design-services model reflects India’s genuine historical strength — Indian engineers have shaped global chip architecture for decades working inside multinational semiconductor firms, and companies like Tata Elxsi are effectively monetising that same talent pool domestically.
9. Bharat Electronics Limited (BEL)
BEL is primarily a defence electronics PSU, but it’s increasingly pushing into fabrication and semiconductor-adjacent capability, aligning its sourcing and manufacturing needs with the broader ecosystem building around Tata Electronics’ fab and OSAT facilities like Kaynes Semicon. Its interest spans fabrication, packaging, and design services relevant to defence-grade electronics.
Given how much of India’s semiconductor strategy is explicitly tied to strategic self-reliance in critical technology, BEL’s involvement signals how closely the commercial chip buildout and national defence priorities are being deliberately intertwined.
10. RIR Power Electronics
RIR Power Electronics is building something genuinely distinct from the rest of this list: India’s first silicon-carbide semiconductor fabrication plant, announced jointly with the Odisha government and MeitY in November 2025, carrying an estimated investment of ₹25,000 crore ($3 billion) in Bhubaneswar. Construction is expected to begin in 2026 with operations targeted for 2028.
Silicon-carbide power semiconductors serve a very different market than the logic and memory chips most of this list focuses on — they’re critical for electric vehicles, renewable energy systems, and high-voltage industrial equipment, making RIR’s project a bet on a specific, fast-growing niche rather than general-purpose chip manufacturing.
Frequently Asked Questions
Q1. Does India currently manufacture semiconductor chips domestically, or is this all still under construction?
A: India is in the early operational stages rather than fully self-sufficient — Micron’s Sanand ATMP facility and Kaynes Semicon’s OSAT plant are already running, but Tata Electronics’ Dholera fab, the country’s first true wafer fabrication facility, isn’t expected to produce first silicon until late 2026. Most of India’s existing semiconductor strength still lies in chip design services rather than physical manufacturing, though that balance is actively shifting.
Q2. What’s the difference between a fab, an OSAT facility, and a fabless design company?
A: A fab (fabrication facility) actually manufactures silicon wafers from raw materials, which is extremely capital-intensive and technically demanding — Tata Electronics’ Dholera plant is India’s flagship example. OSAT (Outsourced Semiconductor Assembly and Test) companies like Kaynes Semicon and SPEL Semiconductor handle the back-end packaging and testing of chips after fabrication, while fabless companies like MosChip Technologies design chip architecture but outsource the actual manufacturing to third-party fabs elsewhere.
Q3. Why is India building 28nm chip fabs instead of competing with TSMC’s cutting-edge nodes?
A: India has no leading-edge logic fab capability below 7nm and isn’t expected to for years, so the strategy deliberately targets the “mature node” segment around 28nm and above, which serves automotive, industrial, and consumer IoT chips rather than AI accelerators or advanced mobile processors. For genuinely cutting-edge chips like AI GPUs, buyers still rely entirely on TSMC in Taiwan, Samsung in Korea, or Intel Foundry, and that isn’t expected to change before 2030 at the earliest.
Q4. What government support is driving this wave of semiconductor investment in India?
A: The India Semiconductor Mission, originally backed with ₹76,000 crore, was significantly expanded through Semicon 2.0’s ₹1.27 lakh crore outlay approved in July 2026, covering fabrication, packaging, design, equipment, and specialty materials across six strategic pillars. The scheme offers financial incentives covering up to 50 percent of project cost for fabs and ATMP facilities, which is the primary reason companies like Tata Electronics and Micron committed to Indian facilities rather than expanding existing capacity elsewhere.
Q5. Which Indian states are emerging as semiconductor manufacturing hubs, and why those locations specifically?
A: Gujarat has become the clear anchor, hosting Tata Electronics’ Dholera fab and Micron’s and Kaynes’ Sanand facilities, largely due to existing industrial infrastructure and strong state-level incentives. Assam and Odisha are also drawing major projects — Tata Semiconductor Assembly and Test’s ATMP facility in Assam and RIR Power Electronics’ silicon-carbide fab in Odisha — reflecting a deliberate government push to spread semiconductor investment geographically rather than concentrating it entirely in one region.