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Tag: India Semiconductor Mission

  • L&T Semiconductor Partners with Foxconn to Develop High-Voltage Semiconductor Wafers

    According to reports, L&T Semiconductor Technologies and Hon Young Semiconductor, a subsidiary of contract maker Foxconn, inked a long-term agreement on 14 October to collaborate on the development of high-voltage semiconductor wafers. According to the Economic Times, the two businesses would create wafers for industrial and automotive applications with voltage ranges between 650V and 3,300V.

    The two will also “cooperate” to guarantee “wafer performance, quality, and scalability,” according to the article. According to a statement from the firm, the collaboration makes use of LTSCT’s integration skills and domain knowledge of automotive and industrial power solutions, as well as HYS’s extensive experience in wafer fabrication.

    According to reports, the collaboration will also make it possible for L&T Semiconductor to design and manufacture wafers specifically for power components using Hon Young Semiconductor’s facilities in Taiwan.

    L&T Semiconductor Technologies and its Operations

    L&T Semiconductor Technologies is a fully-owned subsidiary of Larsen & Toubro (L&T), an engineering, procurement, and construction (EPC) firm. The company that manufactures fabless semiconductors creates and supplies smart gadgets to clients worldwide. It seeks to develop a semiconductor portfolio for automotive, industrial, energy, and telecommunications sectors that includes power, analogue, mixed signal, and radio frequency products.

    This latest venture is L&T’s most recent attempt to establish a presence in the rapidly expanding Indian semiconductor market. In June, the domestic company partnered with Kaynes Semicon to pay INR 118.32 Cr to acquire the power modules division of Fujitsu General Electronics, a Japanese company.

    In order to design cutting-edge CPUs, L&T Semiconductor Technologies also inked a research and development (R&D) agreement with tech giant IBM in September of last year. The company had previously announced in July 2024 that it will pay INR 183 Cr to acquire a 100% share in semiconductor design startup SiliConch Systems.

    Foxconn Aggressively Expanding its Network in India

    Foxconn has been rapidly expanding its business in India. The business and HCL stated earlier this year that they would form a joint venture (JV) to establish an OSAT plant in Noida, Uttar Pradesh, to produce chips for computers, mobile phones, and cars. In the meantime, Foxconn’s primary business is the production of smartphones.

    The Taiwanese corporation has committed INR 15,000 Cr to expand its activities in the state, according to a statement made by Tamil Nadu Industries Minister TRB Rajaa just one day ago. This came after Foxconn’s plan to invest $2.2 billion in the US and India was approved by Taiwan’s Ministry of Economic Affairs.

    Nevertheless, Foxconn is among India’s biggest contract iPhone makers. The business shipped $3.2 billion worth of iPhones from India to the US between March and May. In 2025, it intends to produce 25–30 million iPhones in India.

    Quick
    Shots

    •L&T Semiconductor Technologies partners with
    Hon Young Semiconductor (Foxconn subsidiary).

    •Develop high-voltage semiconductor wafers for
    industrial and automotive applications.

    •Ensuring wafer performance, quality, and
    scalability.

    •Combines L&T’s automotive and industrial power
    expertise with Hon Young’s wafer fabrication experience.

  • India’s Electronics Component Manufacturing Scheme Attracts 249 Applications, Signalling Strong Industry Demand

    On October 2, 2025, the Ministry of Electronics and Information Technology announced that more incentive applications had been submitted to the Electronics Component Manufacturing Scheme (ECMS) than the Union Cabinet had set as a goal.

    While the aim is just INR 59,350 crore, the IT Ministry has received applications with investment guarantees of INR 1,15,351 crore as of September 30, the deadline for applying for incentives for the majority of items under the ECMS’s purview.

    ECM was Launched to Boost Semiconductor Fabrication in India

    With an INR 22,919 crore investment, the ECMS was introduced in April as an addition to the India Semiconductor Mission. Qualified candidates would get incentive payouts connected to both employment and output.

     The programme was introduced to broaden the value chain of electronics manufacturing in India by promoting the expansion of components other than semiconductor fabrication and completed goods in the country.

    IT Minister Ashwini Vaishnaw informed reporters that during the scheme’s six-year duration, we have received output estimates of more than INR 10,34,000 crore, against a production target of INR 4,56,500 crore. We have set a target of 91,600 people for employment; however, the anticipated number of employees is 1.5 times higher, at 141,000 people.

    What will be the Government’s Next Step Now?

    IT Secretary S. Krishnan added that the government will distribute funds in a “first come, first served” manner, with incentive payouts going to approved companies that can grow their businesses and get products onto the market more quickly. The delay is due to the interest in the scheme, which has received 249 applications in total for manufacturing everything from printed circuit boards (PCBs) to so-called “sub-assemblies” in electronic goods.

    For these candidates, scrutiny has begun, and the Ministry will expedite the approval procedure. Vaishnaw stated that some companies had applied for incentives for producing many types of components, which he said the government encouraged, but he declined to name any specific companies that have applied for incentives under this system (or their countries of origin). With 87 applications and 43 applications, respectively, “multi-layer PCBs” and “electro-mechanicals” attracted the most interest. According to the Ministry, “one unnamed company committed around INR 22,000 crore.”

    In reference to the forthcoming second phase of the India Semiconductor Mission, which the government stated is being formulated with an “attractive response from industry”, Vaishnaw stated, “We’re planning to encourage materials also.” In recent months, the government has attempted to broaden the scope of its SOPs to include other value chain segments, such as capital support, semiconductor packaging facilities, and phone assembly units, in the electronics manufacturing industry.

     Due to the time it takes for this specific sector of the business to establish itself, the government is extending the application period for capital goods, or the heavy machinery needed in manufacturing facilities, until April 2027, even though it has finished for almost all other products.

    Quick
    Shots

    •Against a target of INR 59,350 crore,
    total investment proposals reached INR 1,15,351 crore.

    •Scheme launched in April 2025 with a
    budget of INR 22,919 crore to boost domestic component manufacturing.

    •Expected output during the scheme’s
    6-year duration: INR 10.34 lakh crore vs. original target of INR 4.56 lakh
    crore.

    •Employment projection: 1.41 lakh
    jobs, exceeding the target of 91,600 jobs.

  • Government to Fast-Track Next Round of India Semiconductor Mission to Boost Chip Manufacturing

    At the recently finished Semicon 2025, Prime Minister Narendra Modi presided over a roundtable conversation with executives from the global semiconductor sector, during which the industry shared their thoughts on the current projects and suggestions for the next iteration.

    During the last roundtable, one executive involved in the discussions told the media that the government had promised to expedite the approval of the ISM 2.0 programme. The sector has requested far more funding—nearly twice as much as it did under the prior plan.

    Although the amount has not yet been determined, government sources stated that because the rupee has now further devalued against the dollar, the expenditure is probably going to surpass the prior outlay in order to reach the $10 billion threshold under ISM 1.0.

    Increased Funding and Subsidy Model

    The scheme’s incentives will differ for each category due to its wider scope; the highest subsidies will go to those establishing silicon wafer fabrication units, while compound semiconductor units, which require less capital, will receive smaller subsidies, according to officials.

    According to officials, a portion of the investment will also go towards MSMEs and fabless semiconductor designs. Government officials claim that the plan is nearing completion and that by the end of October, a cabinet note will be sent to the union cabinet for approval. Applications are anticipated before the end of the year. In an effort to compete in international markets, industry officials stated that projects that were approved under ISM 1.0 will now aim to establish a local supply chain to acquire minerals, chemicals, and gases locally.

    The government is attempting to bring its foreign suppliers of essential materials, like chemicals and gases, to India, according to an executive in charge of supply chain and procurement for a semiconductor company who spoke to ET. In order to respond to consumer demand and shorten turnaround times, it is essential to have local suppliers who can offer prompt assistance.

    ATMP and OSAT – Industry’s Growing Focus

    The sector is bringing together different assembly, testing, marking, and packaging (ATMP) businesses to establish a basis, generate economies of scale, and develop a cohesive business case to submit to the government, officials noted.

    “We are examining the future structure and features of ISM 2.0. The government has made some indications. They have discussed fabless, design, and helping MSMEs. Additionally, they have discussed assisting suppliers of materials, chemicals, gas, tools, and equipment”, according to Dixon Technologies managing director Atul Lall.

    In order to transition to more sophisticated OLED displays, the contract manufacturer intends to establish a display fabrication unit for LED panels. Dixon has not yet found a technological partner, indicating that the idea is still in its early stages. If approved, the $3 billion investment needed to put up the fab might be subsidised under ISM 2.0. Ten significant projects under ISM 1.0 have been authorised by the government, almost using up its INR 65,000 crore investment.

    Companies setting up semiconductor wafer fabrication units, display fabrication units, compound semiconductor manufacturing units, and outsourced semiconductor assembly and test (OSAT) and ATMP packaging units were given financial support equal to a flat 50% of the project cost.

    Commenting on the development, Manu Iyer, Bluehill VC stated, “In scaling terms 180 nm is about four to five generations older than the 40 nm class used by many commercial microcontrollers, with the typical progression being 180 to 130 to 90 to 65 to 40 nm. For broad commercial use-cases in IoT or automotive sectors this chip is not competitive. On 180 nm the same compute typically needs about twenty times more die area than a 40 nm class microcontroller unit.”

    “This means a larger die, fewer chips per wafer, higher power use, and higher unit cost. The right near term positioning is clearly aerospace and related low volume defense or scientific platforms, not general purpose consumer or automotive markets. The generational gap also explains ecosystem gaps, since newer nodes bring denser memory and peripherals, lower operating voltages, and mature certification paths that are common in commercial microcontrollers used in most common applications,” he added further .

    Quick
    Shots

    •Industry seeking double the funding
    compared to ISM 1.0; spending expected to cross $10 billion due to rupee
    depreciation.

    •Plans to bring suppliers of minerals,
    chemicals, gases, and tools to India to reduce import dependence.

    •Industry aligning on assembly,
    testing, marking, and packaging to scale domestic capacity.

    •Dixon Technologies exploring a $3B
    display fab for OLED panels, may qualify for ISM 2.0 subsidies.

  • Dixon wants to Construct a $3 Billion Display Fabrication Plant in India

    Dixon Technologies, an electronics company, is in talks to establish a $3 billion display fabrication plant in India as part of its expansion into the electronics components market. During the Q3 results call, Dixon’s managing director, Atul Lall, made the announcement. He claimed that the giant from Noida is in negotiations to develop this facility with a multinational tech company. According to Lall, the company is actively negotiating with a worldwide technological partner to establish a top-tier display factory, which is a crucial component in the consumer electronics, IT hardware, and mobiles sectors. The industrial giant hopes to reduce costs, gain control over the supply chain, and localise output via this entity. In order to proceed with this initiative, Dixon is also awaiting the center’s guidelines for the India Semiconductor Mission (ISM) phase 2.

    How Firm Plans Utilise Funds?

    Regarding the capital investment, Lall stated that approximately $3 billion will be invested in the project at first, with 60% going towards televisions and 15%–12% going towards the production of mobile phones. It’s important to remember that the business wants to use government funding to support this endeavour. In terms of finances, Dixon reports that its consolidated revenues were INR 10,461 Cr at the end of the December 2024 quarter, up 117% from INR 4,821 Cr in the same quarter of the previous fiscal year.

    More Details About the Proposed Manufacturing Unit

    When it comes to producing devices and products, India’s electronics manufacturing sector has matured. A robust component ecosystem is necessary to maintain and expand. In addition to mechanical and other modules, the company has also introduced a display module that will be operational in the upcoming two to three quarters, according to Lall.

    In collaboration with HKC, the firm has also decided on a location for display manufacture, and it anticipates that production will begin in the first or second quarter of the upcoming fiscal year. Trial production of Dixon’s specialised IT hardware manufacturing facility is scheduled to start in February, and mass production is scheduled for the first quarter of FY25–26. Devices for Asus and HP will be produced in large quantities by the facility. According to Lall, mass production for Acer and Lenovo has already started.

    India’s PLI Scheme Attracting Players

    At the same time, Dixon and manufacturing giant Foxconn have recently exhorted Indian authorities to settle their outstanding dues, which amount to INR 700 crore. This development has occurred recently. These incentives are available to both giants through the Centre’s production-linked initiative (PLI) program. Dixon has recently expressed optimism that the nation’s manufacturing will increase. For example, it signed an agreement with Vivo India last month to establish an OEM plant through a joint venture. Dixon’s subsidiary Padget Electronics and HP India inked a memorandum of understanding (MoU) in September 2024 to produce laptops and personal computers (PCs).

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  • Tata Electronics and TCS Will Develop India’s First Homegrown Chips by 2026

    A top official from Tata Consultancy Services (TCS) has stated that the conglomerate is working along with Tata Electronics Pvt Ltd to achieve its goal of introducing India’s first chips that are created domestically by the year 2026, as reported by a media outlet,

    The news article cited details provided by Sreenivasa Chakravarti, VP and head of TCS’s digital engineering division worldwide. Chakravarti said that TCS, a firm that focuses on semiconductor design and engineering, is involved in the chip manufacturing process at various stages, with Tata Electronics at the forefront. Additionally, Chakravarti brought attention to several additional shared services, such as software solutions and goods based on intellectual property (IP) for semiconductors.

    At present, a significant number of companies are establishing operations in India to develop technologies and services for global markets. However, there is also a market for semiconductors in India. As a result, Chakravarti believes that the issue is to construct something for India from within India.

    India Semiconductor Mission

    As part of efforts to improve the semiconductor industry, the India Semiconductor Mission gave its approval in February for the establishment of three manufacturing facilities for semiconductors. There are two of these projects that are being developed by Tata Electronics as the principal company. The first of these is a greenfield chip manufacturing plant in Dholera, Gujarat, that will be constructed in conjunction with Taiwan’s Powerchip Semiconductor (PSMC) and will have an initial output capacity of 50,000 wafers per month. The plant will cost $11 billion. According to the reports, the second factory is located in Assam and is valued at $3.26 billion. Its primary focus is on chip assembly and testing.

    The first chips to be manufactured at the Assam facility are expected to be made accessible by Tata Electronics by the end of 2025 or the beginning of 2026. The company intends to target businesses such as the automotive, electronics, power, consumer goods, and healthcare sectors.

    First Indian Technology Services Company With Expertise in Semiconductor Engineering

    TCS is the first Indian technology services company to create a robust capability in semiconductor engineering and services, according to Omkar Tanksale, a senior IT research analyst at Axis Securities. Globally, TCS has a substantial presence in the fields of semiconductor design, engineering, and software development for applications involving semiconductors.

    Throughout the course of the year, Tata Electronics has been establishing collaborations with a wide variety of worldwide companies and nations in order to supply semiconductor chips.

    Tesla has entered into a strategic agreement with Tata Electronics in April to acquire semiconductor processors for its global operations.

    Additionally, a few days ago, Tata Electronics and Tokyo Electron Limited (TEL) inked a memorandum of understanding (MoU) with the purpose of establishing a semiconductor equipment infrastructure.

    Cabinet Approves New Semiconductor Unit Under India Semiconductor Mission
    Ashwini Vaishnaw, the Minister of Electronics and Information Technology, announced on 2 September 2024 that the cabinet had given its approval to a proposal put out by Kaynes Semicon to establish a semiconductor unit in Sanand, Gujarat.
    StartupTalkyNitin Konde

  • India’s Semicon Mission Set to Receive Crucial 8-Year Financial Boost

    Reports indicate that government officials are contemplating a five-year extension of the budgetary assistance period under the second phase of the India Semiconductor Mission (ISM) to eight years.

    According to a senior government official, applicants whose projects are approved under ISM Phase II may be eligible for additional financial grants to train their employees, an option for an additional interest-free loan from the government, and a preferential supply of domestically manufactured and packaged chips.

    “After the first phase of the ISM was successfully implemented, we learned a lot.” according to the official, they have been receiving feedback from industry professionals and experts all over the world and are making an effort to include as much of it as possible.

    Possible Blueprint for Phase II

    The source did mention that the second phase of the mission might see an increase in administrative spending and a withdrawal of funding for technology transfer costs.

    According to a renowned media outlet, the IT ministry is reportedly planning to reallocate funds from the second phase of the ISM away from chip packaging factories and towards semiconductor fabrication companies in India.

    An official said that the incentives for outsourced assembly and testing and assembly, testing, marking, and packing units would be reduced to less than 30% on a pari-passu basis in the next phase of the ISM, down from the present 50%.

    According to the official, we will also include more explicit instructions for reimbursement in the proposal itself. These are the initial concepts that have been deliberated.

    An additional incentive of 30–35% of the total capital expenditure used to establish units for gases, chemicals, raw materials, metals, and other metallurgy could be offered to successful candidates, according to the official.

    5 Semiconductor Projects Approved by GOI

    A chip manufacturing plant for Tata Group-Powerchip Semiconductor Manufacturing Corp in Dholera, Gujarat, and four chip packaging units, three in Sanand, Gujarat, and one in Morigaon, Assam, were sanctioned by the government as far under the first phase.

    An investment plan to establish a semiconductor chip manufacturing unit at Taloja in Panvel, proposed by a joint venture between Tower Semiconductor and Adani Group, was authorized last week by a cabinet panel in Maharashtra. The proposed investment is $10 billion.

    The Navi Mumbai suburbs in Raigad district are home to the projected Tower Semiconductor-Adani Group factory, which will initially have a capacity of 40,000 wafer starts per month (WSPM) and will subsequently be increased to 80,000 WPSM. The first phase investment will amount to INR 58,763 crore, while the second phase investment will account for the remaining INR 25,184 crore of the overall project investment.

    This would be the sixth project of its kind to receive central government approval in India; if the ISM gives its blessing, it will become the country’s second chip production facility.

    Kaynes Semicon, headquartered in Mysore, has previously requested and received approval from the Union Cabinet to establish an outsourced assembly and testing operation in Sanand, Gujarat, costing INR 3,307 crore. It is anticipated that the Kaynes Semicon plant can produce 6.3 million chips daily.

    Kaynes Purchases Land in Gujarat to Construct a Semiconductor Unit
    Kaynes Technology, an Electronics manufacturing services provider, has bought some property in Sanand, Gujarat, to establish an OSAT (outsourced semiconductor assembly and test) unit.
    StartupTalkyNitin Konde

  • Cabinet Approves New Semiconductor Unit Under India Semiconductor Mission

    Ashwini Vaishnaw, the Minister of Electronics and Information Technology, announced on 2 September 2024 that the cabinet had given its approval to a proposal put out by Kaynes Semicon to establish a semiconductor unit in Sanand, Gujarat, with an investment of INR 3,307 crore (exactly $394.15 million).

    Under the India Semiconductor Mission, this is the fifth semiconductor unit to be sanctioned, and it is the second unit to be established in Sanand province. The overall investment amounts to INR 1,52,307 crore, which is equivalent to almost US$18.15 billion.

    India Semiconductor Mission

    During December in the year 2021, the government made an expenditure of INR 76,000 crore to launch the ISM and the display manufacturing ecosystem. The semiconductor business is a “foundational industry” for India’s domestic manufacturing aspirations, according to Vaishnaw. He stated that because this [ISM] is a lengthy program, there will undoubtedly be an increase in expenditures and that the government will return with the specifics of the program as soon as they are finalized.

    The India Semiconductor Mission (ISM) is a specialized and independent Business Division that is part of the Digital India Corporation. Its primary objective is to establish a thriving semiconductor and display ecosystem to facilitate India’s emergence as a global hub for the manufacturing and design of electronic devices. In consultation with government ministries, departments, and agencies, as well as industry and academic institutions, the mission aims to serve as a focal point for the comprehensive, coherent, efficient, and smooth deployment of the Program for Development of Semiconductor and Display Ecosystem. This mission will be led by global experts in the semiconductor and display ecosystem.

    The Production Capacity of the New Unit

    Chips made by Kaynes Semicon’s assembly, testing, marking, and packaging (ATMP) unit can be utilized in electric cars, consumer electronics, mobile phones, telecom equipment, and various industries. The plant can generate 6 million chips per day.

    Kaynes Semicon CEO Raghu Panicker announced that a 47-50 acre site in Sanand will be used to establish the new operation. The company has leveled, tested the soil, and examined the structure in the last three months. It will start excavating on 3 September 2024 or the day after it receives the approval notice. The clean room is scheduled to be built in six to eight months.

    Panicker has stated that the company plans to earn some cash this fiscal year from the first packed chip for a paying customer, which he estimates to be produced by March 31, 2025.

    The initial packaged chip for a paying client will be available by March 31, 2025. He promised that while they would make a little profit this fiscal year, most of their income would arrive in the following fiscal year.

    Joining Hands With Global Players

    The electronics manufacturer Kaynes Technology is situated in Karnataka, and it has a wholly-owned subsidiary called Kaynes Semicon. Lightspeed Photonics of Singapore became Kaynes Semicon’s first OSAT (outsourced semiconductor assembly and test) customer last week, according to Panicker. He promised an announcement in the next weeks regarding the two new customers the firm had acquired, one in the United States and one in Taiwan.

    Two technological partners from different countries—one from Malaysia, Globetronics, and the other from Japan, Aptos Technology—have joined forces with Kaynes Semicon to launch this innovative ATMP unit. To build packaging and testing capabilities in India, Kaynes Semicon will pay up to $5.5 million to Aptos for people’s technical training and know-how licenses, according to an update filed with the National Stock Exchange by Kaynes in February 2024.

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