India's Chip Map Takes Shape: 12 Semiconductor Projects in 6 States Worth ₹1.64 Lakh Crore
A recent review of India's chip industry noted that 12 semiconductor projects have now been approved under the India Semiconductor Mission (ISM), spread across six states, with total investment of about ₹1.64 lakh crore.
Gujarat has emerged as the largest hub with six approved projects. These include the Tata Electronics-PSMC chip fabrication plant (fab) at Dholera, worth about ₹91,526 crore, and the Micron, CG Power and Kaynes units at Sanand.
The other states with projects are Assam (Tata's chip assembly and testing unit near Jagiroad, Morigaon), Uttar Pradesh (HCL-Foxconn display driver chip unit near Jewar), Odisha (SiCSem silicon carbide unit and 3D Glass Solutions packaging unit), Punjab (Continental Device India, Mohali) and Andhra Pradesh (ASIP Technologies).
The two most recent approvals were both in Gujarat: Crystal Matrix's display unit at Dholera and Suchi Semicon's packaging unit at Surat, worth about ₹3,936 crore together.
Most projects are packaging and testing units; the Dholera plant is India's first large commercial fab. India's semiconductor market is projected to cross about USD 100 billion by 2030.
India Semiconductor Mission (ISM)
The India Semiconductor Mission (ISM) is the Government of India's main programme to build a chip-making industry inside the country. Chips (semiconductors) are the tiny "brains" inside phones, cars, laptops, power grids and missiles. India uses huge numbers of them but makes very few. The ISM gives large money support to companies that set up chip plants, packaging units and chip design work in India.
The picture of 12 projects in six states is the result of the ISM's subsidy model at work. Gujarat leads because it has the first fab and several packaging units clustered at Sanand and Dholera, while new states like Odisha, Punjab and Andhra Pradesh have joined in the latest rounds. ISM 2.0 is meant to take this from plants that pack chips to plants and companies that make and design them.
Semiconductor Value Chain: Design, Fabrication and ATMP/OSAT
A chip is not made in one place or in one step. It passes through a chain of stages, often in different countries: first it is designed, then it is fabricated (built) on silicon wafers, then it is assembled, packaged and tested, and finally it goes into a phone, car or computer. This chain is called the semiconductor value chain. Knowing it helps you understand what India is good at today, and what it is trying to build.
Most of India's 12 approved projects sit in the ATMP/OSAT stage of this chain, with one major fab at Dholera and one compound semiconductor unit in Odisha. Gujarat's lead comes from hosting both the fab and several packaging units. The next challenge, as the value chain shows, is to move up into fabrication and owned chip designs, where most of the value lies.
- Approved ISM projects: 12, in 6 states (Gujarat, Assam, Uttar Pradesh, Odisha, Punjab, Andhra Pradesh)
- Total investment: about ₹1.64 lakh crore
- Gujarat: 6 projects, including the Tata-PSMC Dholera fab (about ₹91,526 crore)
- Latest approvals: Crystal Matrix (Dholera) and Suchi Semicon (Surat), about ₹3,936 crore together
- Semicon India Programme: ₹76,000 crore (December 2021); ISM 2.0: about ₹1.27 lakh crore (July 2026)
- Fiscal support: 50% of project cost (fabs) or of capex (ATMP/OSAT, compound semiconductors)
- India's semiconductor market: projected above USD 100 billion by 2030