Tata Electronics, Applied Materials bolster India’s chip push
A string of new agreements by Tata Electronics and a $5 billion investment commitment from US semiconductor equipment maker Applied Materials were among the major developments on the first day of India’s annual semiconductor event.
The announcements came as Union IT minister Ashwini Vaishnaw said that the second phase of India’s national semiconductor programme, Semicon 2.0, had attracted investment commitments of $11-12 billion, or about ₹1 trillion and that these are expected to be made over the next two to three years.
On Thursday, Tata Electronics signed seven memoranda of understanding (MoUs) with companies, including Dutch compound-chip maker Nexperia and Japanese semiconductor materials supplier Fujifilm, to expand India’s semiconductor ecosystem.
While the value of all the deals was not disclosed, Fujifilm has committed ₹800 crore to set up a materials plant alongside Tata Electronics’ chip fabrication unit in Gujarat’s Dholera.
President of Applied Materials’ Semiconductor Products Group Prabu Raja said that the company will invest $5 billion in the country over 10 years to deepen semiconductor research and development, expand the local supply chain and develop talent.
Vaishnaw said the deals had expanded India’s total semiconductor investments to $12 billion. “The investment numbers that we are seeing today are of the order of ₹1 trillion, about $11-12 billion.”
“That much investment we are seeing among the people who have met us. Many others are looking to set up their bases in India. Now these bases will be of two different levels. There would be some who would just like to do design here. There would be many others who would like to do both design and manufacturing here. We will support both,” the minister added.
Semicon India 2026 follows the announcement of Semicon 2.0 in July, New Delhi’s ₹1.28-trillion incentives package to attract investment for a second chip fab and to offer equity-linked support to startups to build local chip design patents.
One step at a time
Meanwhile, Prime Minister Narendra Modi, speaking at the event, pitched India as a trustworthy location for building semiconductor capabilities. “When a country like ours succeeds in a critical industry, it strengthens the global supply chain—a fact that has become even more significant at a time when supply chains are being weaponized.”
“International companies can now collaborate with Indian startups, Indian design companies, and local companies to build the semiconductor ecosystem,” Modi said.
Vaishnaw added that of the 12 chip projects that have received incentives under Semicon 1.0, five have begun commercial production. All of these, to be sure, are chip-testing, packaging, and assembly factories. India’s sole chip fab by Tata Electronics, being built in Dholera, is expected to take until at least 2028 to operationalize.
Among other investments, US chip equipment maker Lam Research said on Wednesday, ahead of Semicon India, that it would invest nearly $1.1 billion ( ₹10,000 crore) over the coming years to establish its first silicon component manufacturing facility in India and expand its research and development operations.
Mint reported on 27 August that India’s conglomerates have invested over ₹4,000 crore in semiconductor subsidiaries.
So far, India’s investments have focused on chip assembly plants. With Semicon 2.0 under the ministry of electronics and IT (Meity)’s India Semiconductor Mission (ISM), New Delhi hopes to have local chip equipment makers, materials, gases and chemicals suppliers, and even a first display chip fabrication plant over the next six years.
Under Semicon 1.0, more than 105 startups participated in chip design, with around 20 securing about ₹800 crore in venture capital funding. Under Semicon 2.0, the government aims to scale this to at least 200 chip-design startups and companies across the semiconductor ecosystem, Vaishnaw added.
Industry approval
Industry stakeholders largely hailed Thursday’s event as a positive posture from the government. “Semicon 2.0 is a clear signal that policy intends to work with Indian and global industry to build a viable semiconductor base that extends well beyond design, into machines, materials, packaging, and testing,” said Pranav Pai, founding partner and chief investment officer at venture capital firm 3one4 Capital.
“The sizable early commitments and a target of 200 chip-design companies indicate Semicon 2.0 is serious about the whole chain, and not just fabs,” Pai added.
Semicon India is taking place at a time when countries are seeking greater technological self-reliance amid intensifying global competition. The growing technology rivalry between the US and China is a case in point. In June, the US department of commerce issued guidance aimed at preventing advanced Nvidia artificial-intelligence chips from reaching overseas subsidiaries of Chinese companies.
