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India's Chip Ambition: 360 ONE Backs EMS Over Fabs Amid Capacity Surge
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Moneycontrol•28-09-2026, 13:51
India's Chip Ambition: 360 ONE Backs EMS Over Fabs Amid Capacity Surge
- •India's semiconductor push sees 12 approved projects and over $18 billion committed, moving from policy to physical construction.
- •Domestic chip demand is projected to more than double to over $117 billion by 2030, but capacity is being added ahead of proven demand.
- •360 ONE Capital suggests participating through established electronics manufacturing and component companies rather than pure fabrication bets due to execution risks.
- •ISM 2.0 is expected to broaden focus to design, equipment, materials, and advanced packaging, with global players like Applied Materials and Micron investing.
- •360 ONE prefers Avalon Technologies and Syrma SGS Technology for near-term value capture, citing their existing EMS and component capabilities.
Key Questions Answered
India's domestic chip demand is projected to more than double to over $117 billion by 2030. Under the India Semiconductor Mission 1.0 (ISM 1.0), 12 projects have been approved with more than $18 billion of committed investment.
Capacity is being added ahead of proven demand and supplier depth, creating execution and yield risks for pure fabs. Therefore, 360 ONE prefers established EMS and component players like Avalon Technologies and Syrma SGS Technology to participate in the initial build-out without direct fabrication risk.
Applied Materials announced a $5 billion investment over 10 years, ASML is building customer-support capability around Tata Electronics' Dholera fab, and Micron has begun commercial production at Sanand.
