It’s no secret India has big plans for itself. As the most populous country in the world with the fastest-growing major economy, this rising powerhouse is intent on establishing itself as a powerhouse for semiconductor manufacturing in the coming years. 

Here’s a quick look at what’s occurred so far:

A brief timeline of India’s efforts to attract more semiconductor investors

In late 2021, India’s Union Cabinet approved the Program for Development of Semiconductors and Display Manufacturing Ecosystem in India, otherwise known as the Semicon India Program. This program would invest some $10 billion into the development of semiconductor manufacturing, specifically chip and display production. The program, aimed to make India one of the premiere global locations for electronic design and manufacturing, was the first notable push by the country to enter a market dominated by Taiwan and China. 

In early 2022, the Indian government announced it would increase its coverage of project costs for new semiconductor facilities from 30% to 50%. It also said it would eliminate the ceiling for the maximum permitted investment, as well as cover 50% of the capital expenditure required for the creation of new packaging facilities. By February, the government said it had received applications from five companies interested in the new incentives.

In 2023, the government said it was looking to invite a “second round” of applications from businesses looking to manufacture semiconductor chips in India.

These initiatives are some of the dramatic efforts being made to enter the global technological landscape.

Micron: India’s first semiconductor plant in Gujarat

Hours after being invited to join India’s campaign for semiconductor dominance, US chipmaker Micron announced plans to build a new assembly and test factory in Gujarat. The $2.5 billion investment (with $825 million coming from Micron and the rest being supplied by the Centre and state government) is expected to be completed within 18 months of the June announcement, or December 2024.

Gujarat is India’s westernmost state with a coastline of 900+ miles and a population of 60.4 million as of 2011. The area is highly industrialized compared to other states and boasts a low unemployment rate, both beneficial factors for Micron’s technological investment. Gujarat is also India’s largest manufacturing hub, having taken the title from neighboring state Maharashtra in 2021. 

The new facility will focus on the assembly and testing of DRAM and NAND products, with the goal of catering to the demand of both domestic and international markets.

Micron is the fifth-largest semiconductor in the world by revenue and has 13 FABs around the world as of late 2023. These FABs produce 30nm and under process technology nodes and are frequently used in products such as automobiles, consumer electronics, servers, and computers. 

Other players entering India’s semiconductor market

The momentum of India’s semiconductor initiatives is in full swing, but that’s not to say it’s been smooth sailing. 

Last year, ISMC and Vedanta Ltd. applied for the Semicon Program incentives, with ISCM planning to invest $3 billion in India’s southern state Karnataka and Vedanta $19.5 billion (in partnership with Foxconn). Since those announcements, however, progress has stalled for various reasons: ISMC’s Israeli partner Tower is currently undergoing a takeover by Intel, while Vedanta and Foxconn have been delayed while trying to bring STMicroelectronics into the plan.

In spite of these setbacks, other plans continue to push forward. India’s Minister for Electronics and Information Technology Ashwini Vaishnaw announced that three new semiconductor fabs would be coming soon.

This news comes after AMD’s inauguration of its largest global design center in Bengaluru, the largest city in Karnataka. The $400 million dollar investment will conduct research, development, and engineering operations in India, with a focus on next-generation CPUs, GPUs, and SOCs. 

According to The Times of India, “The state-of-the-art campus plans to employ around 3,000 engineers in the coming years, focused on the design and development of semiconductor technology including 3D stacking, artificial intelligence, machine learning, and more.”

India’s only just getting started with semiconductor manufacturing

India’s semiconductor industry is still in its infancy, but that isn’t holding back its appetite for more. It remains to be seen what will happen with the ISMC and Vedanta investments in the future, but for now, all of India is looking to Micron as its model example of what success for India could truly be.