India To Operationalize Five Semiconductor Plants By End Of 2026

India is rapidly advancing its semiconductor manufacturing ambitions, with Union Minister Ashwini Vaishnaw confirming that five semiconductor plants are expected to be operational across the country by the end of 2026. This progress is a key component of the India Semiconductor Mission, which aims to establish a robust domestic chip ecosystem. The CG SEMI (OSAT) facility in Sanand, Gujarat, has already commenced commercial production, marking a significant success as the third of 12 approved projects to reach this stage.

The government's commitment to this sector is backed by approximately $80 billion in subsidies distributed across various phases of the mission. These financial incentives are designed to attract global players and encourage domestic firms to invest in high-tech manufacturing, thereby reducing India's heavy reliance on chip imports. With two more plants scheduled for inauguration in the coming months, the pace of development is accelerating, signaling a shift in India's industrial capabilities.

The long-term outlook for the sector is highly optimistic, with India's chip market projected to grow from $54 billion in 2026 to $350 billion by 2035. By building a comprehensive semiconductor supply chain, India aims to become a global hub for chip design and manufacturing. This strategic focus is expected to create thousands of high-skilled jobs and provide a foundation for the country's broader technology and electronics manufacturing goals over the next decade, ensuring greater self-reliance in critical hardware components.