India's Semiconductor Manufacturing Ecosystem Expands With Five Plants Operational By Year-End

India's ambition to establish a robust semiconductor manufacturing ecosystem is rapidly materializing, with five plants expected to be operational by the end of 2026. Union Minister Ashwini Vaishnaw confirmed that out of 12 approved projects, three facilities are already in commercial production. The most recent addition, the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) plant in Sanand, Gujarat, commenced commercial production on July 4, 2026, marking a significant milestone for the domestic industry.

The Sanand facility is designed to produce 5 billion chips annually, with an initial target of 200 million chips per year. These chips are intended to serve domestic industries, including automobiles, scooters, and industrial equipment, while also catering to export markets in Japan, the United States, and Europe. This strategic focus on both domestic consumption and international exports is central to India's goal of becoming a global semiconductor hub, reducing reliance on foreign supply chains for critical electronic components.

Construction is also advancing at the Tata wafer fabrication facility in Dholera, Gujarat, developed in partnership with PSMC. This facility is expected to produce its first silicon in 2026-2027, focusing on 28nm nodes for automotive ICs, power management, and IoT devices. As these facilities come online, India is poised to significantly enhance its manufacturing capabilities, creating a more resilient supply chain for the electronics and automotive sectors throughout the coming years.