Stories
India's Semiconductor Ambition: Building an Ecosystem Beyond Fabs is Key to Success
- •India's semiconductor push is moving beyond securing fab investments to building a robust ecosystem for viability, including materials, equipment, logistics, talent, R&D, and reliable power.
- •Tata Electronics is leading this effort with India's first commercial-grade silicon fab in Dholera, Gujarat, and an OSAT facility in Assam, actively assembling a supplier ecosystem with 16 MOUs and over 450 partners.
- •Global players like ASML, Applied Materials, and Fujifilm are investing in India, focusing on equipment, R&D, and materials, indicating the early formation of a domestic supply chain and potential export opportunities.
- •The ecosystem development is transforming India's role for semiconductor companies, with Renesas and NXP expanding beyond engineering to engage with local manufacturing and OSAT opportunities.
- •The government's expanded Semicon 2.0 program, with a Rs 1.27 lakh crore outlay, broadens its focus to include equipment, materials, design, R&D, and overall ecosystem development, crucial for India's long-term chip ambitions.
Key Questions Answered
Tata Electronics is establishing India's first commercial-grade silicon fab in Dholera, Gujarat, alongside an OSAT facility in Assam. The company has brought over 450 partners into the Dholera project and signed 16 memorandums of understanding covering equipment, materials, chemicals, and gases to foster a domestic supply chain.
The expanded Semicon 2.0 programme features an outlay of approximately Rs 1.27 lakh crore, widening its scope beyond fabs and packaging to encompass equipment, materials, design, research and development, and overall ecosystem creation.
Global firms are scaling up operations to support local chip manufacturing. ASML has started operations with plans to hire engineering graduates, Applied Materials is investing $5 billion over a decade to expand research and development, and Fujifilm is investing roughly Rs 800 crore in a materials facility at Dholera.
