Five Companies Powering India's Semiconductor

Manufacturing Ambitions

Report By Y-Trendz

India's drive to become a global semiconductor manufacturing hub has moved from policy announcements to concrete factories rising out of the ground in Gujarat, Rajasthan, and beyond.

Anchored by the India Semiconductor Mission (ISM) and a raft of fiscal incentives, the country now has more than a dozen approved projects, several of which are already operational. At the heart of this transformation are a handful of companies — Indian conglomerates and global chipmakers alike — whose investments are reshaping India's position in the world's chip supply chain. Here are five companies at the center of that push.

1. Tata Electronics: Building India's First Advanced Fab

No company looms larger over India's semiconductor ambitions than Tata Electronics, the group's dedicated chip manufacturing arm. Its flagship project is an $11 billion greenfield wafer fabrication facility in the Dholera Special Investment Region of Gujarat, developed in partnership with Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC). The plant is under construction, with first silicon expected sometime in 2026 or 2027, and it is designed to produce chips at the 28-nanometer node and above — a mature but strategically important process class. That node size is considered ideal for automotive, industrial, and consumer IoT applications rather than cutting-edge computing chips, positioning Tata's fab to serve India's fast-growing electronics and auto sectors directly.

The scale of the investment is striking even by global standards. Tata's Dholera project has been described as the largest single investment among India's approved semiconductor projects, with roughly INR 910 billion allocated to AI-enabled fabrication capacity, a project expected to generate around 21,000 direct and indirect jobs. Industry watchers are now tracking the fab's progress closely, with brokerages noting that the Tata-PSMC facility is targeting its first chip output by December 2026 — a milestone that would mark India's entry into large-scale wafer fabrication for the first time.

2. Micron Technology: The First Facility Up and Running

While Tata's fab remains under construction, U.S. memory chip giant Micron Technology has already crossed the finish line on its first Indian facility. Micron is building a $2.75 billion facility in Gujarat dedicated to producing memory chips for use in phones and computers, and the project falls under the government's Scheme B, which offers 50 percent fiscal support for assembly, testing, marking, and packaging operations.

The Sanand, Gujarat plant achieved a major milestone earlier this year. Prime Minister Narendra Modi inaugurated Micron's assembly, test, marking, and packaging facility in Sanand on February 28, marking it as the first operational semiconductor facility of the current mission cycle. As of mid-2026, that Sanand ATMP unit remains one of the few fully operational chip plants in the country, giving Micron a first-mover advantage and a symbolic role as proof that India's semiconductor push can deliver working factories, not just announcements.

3. CG Power (CG Semi): India's Home-Grown Chip Player

Among purely Indian companies, CG Power and Industrial Solutions has emerged as one of the most closely watched players, operating its semiconductor unit under the CG Semi brand. CG Power is a named beneficiary of Scheme B, the government's assembly, testing, marking, and packaging support program, and the company has moved quickly from approval to execution. CG Semi's pilot production line is now operational, making it one of the earliest domestic firms to actually begin chip-related manufacturing rather than remain in the construction phase.

CG Power's importance extends beyond its own factory floor. Along with Kaynes Technology, CG Power is one of only two listed Indian companies with direct exposure to semiconductor manufacturing, giving investors a rare direct stock-market route into the sector's growth. That distinction has made CG Power a bellwether for how markets are pricing India's broader semiconductor bet, even as some brokerages have urged caution on near-term valuations given the industry's long execution timelines.

4. Kaynes Technology (Kaynes Semicon): Speed From Foundation to Production

Kaynes Technology, through its Kaynes Semicon subsidiary, has distinguished itself with the sheer speed of its buildout. Kaynes Semicon's OSAT (outsourced semiconductor assembly and test) facility in Sanand is now operational, having gone from initial approval to commercial production in a notably compressed timeframe. The Kaynes Sanand plant reportedly took just 14 months from foundation to commercial production, a pace that industry observers point to as evidence of what disciplined project management combined with strong state-level clearance support can achieve in India's chip manufacturing ecosystem.

Like CG Power, Kaynes is one of the two listed Indian companies giving public market investors direct exposure to the country's semiconductor buildout. Its progress at Sanand — now part of a cluster that also includes Micron's ATMP unit and CG Semi's pilot line — has helped establish the Gujarat town as one of India's fastest-emerging chip manufacturing hubs, illustrating how clusters of complementary facilities are forming around shared infrastructure and skilled labor pools.

5. Vedanta: A Long-Standing Bet on Chips and Displays

Rounding out the list is Vedanta, the diversified Indian conglomerate that was among the earliest major domestic players to formally pursue semiconductor manufacturing in India. Vedanta's joint venture with Taiwan's Foxconn was one of the applicants for the government's original $10 billion incentive plan aimed at attracting semiconductor and display manufacturers to the country. That early move helped set the template for the large-scale foreign and domestic partnerships that have since defined India's approach to chipmaking.

The broader significance of Vedanta's involvement lies in how it reflects the government's insistence on courting big-ticket investors across the entire value chain, from fabrication to display technology. Then-IT Minister Ashwini Vaishnaw indicated at India's first semiconductor conference in Bengaluru that once the first tranche of incentives was utilized, the government intended to expand the program further, citing strong appetite among investors. That expansion has materialized in the years since, with the ISM's second phase, budgeted in FY27, extending support further upstream into equipment, intellectual property, and workforce skilling — areas where companies like Vedanta continue to weigh expanded participation.

A Fast-Maturing Ecosystem

Collectively, these five companies illustrate the layered strategy behind India's semiconductor push: a flagship advanced fab under Tata, an operational anchor tenant in Micron, and two nimble domestic players in CG Power and Kaynes Technology proving that packaging and testing capacity can be built quickly, alongside pioneering conglomerates like Vedanta that helped kickstart the sector's momentum years ago.

According to industry analysts, India's semiconductor policy now spans the full value chain, with the India Semiconductor Mission funding fabs and packaging at a 50 percent central subsidy, a separate scheme supporting components and materials, and additional programs backing design startups and university-level talent development. Even so, challenges remain: analysts caution that India will continue importing more than 90 percent of its semiconductor equipment, along with most specialty chemicals and gases, while the absence of leading-edge manufacturing below 7 nanometers and execution risk remain key constraints on the sector's growth.

Still, with 12 approved units carrying over $21 billion in combined investment and a growing cluster of operational facilities in Gujarat and Rajasthan, India's semiconductor ambitions are increasingly backed by steel, silicon, and jobs — not just policy documents.