India strengthens its growing chip prowess with further semiconductor fabrication plants

Like many Asian countries, India is trying to take advantage of the global transition to more resilient semiconductor supply chains that are not wholly reliant on manufacturers based in China or Taiwan. It means there are growing opportunities, with less risk, for U.S. companies operating in the region.

On May 14, 2025, India’s government approved plans for a new semiconductor fabrication plant in a joint venture between India’s HCL Group and Taiwan’s Foxconn. It is the sixth chip plant project to be approved by the Indian government since it launched its “Semiconductor Mission” in December 2022, which aims to position the country as a hub for electronic manufacturing.

The fab is to be built near Jewar International Airport in Uttar Pradesh and is expected to cost around $435 million. It will have around 20,000 wafers and produce 36 million chips per month, which will be used in displays for laptops, mobile phones, automobiles, personal computers, and other devices with screens.

Following the Indian government’s approval, Foxconn announced that it would be investing a further $1.5 billion in India. The investment, which will be made through Foxconn’s Singapore-based arm, will see the company buy 12.7 billion shares in its Indian unit, Yuzhan Technology India, which makes smartphone components and is a key part of Apple’s iPhone supply chain.

India has five chip fabrication plants currently under construction

Currently, India has five plants under construction. India’s Tata Electronics has partnered with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), with the latter agreeing to design and build a wafer manufacturing plant in Gujarat. Tata will manage operations once the facility is open. Other plants under construction include:

• U.S.-based Micron’s new semiconductor assembly and test facility near Ahmedabad, which is expected to start operations in January 2026.
• A semiconductor plant being built by Tata Semiconductor Assembly and Test Pvt Limited in Assam.
• A plant being constructed by Mumbai-based CG Power, in partnership with Japan’s Renesas Electronics Corporation and Thailand’s Stars Microelectronics.
• Another plant being constructed by Indian company Kaynes Semicon Pvt Limited in Gujarat.

India is also expanding its ability to produce advanced semiconductors. In May, for example, India inaugurated its first 3nm chip design centers in Noida and Bengaluru. The state-of-the-art design centers have been built by Renesas Electronics India and are expected to provide a transformative leap in the country’s advanced chip manufacturing capabilities and expertise.

It is part of the country’s efforts to create its own advanced semiconductor ecosystem and supply chain, and to meet Asia’s proliferating demand for electronic equipment. India aspires to have 10 semiconductor manufacturing plants by 2034. This holistic approach also includes advanced chip fabrication and design, as well as education and training of new engineers and designers.

The Quad partnership starts to blossom

India also has an agreement with Japan – as part of the “Quad partnership” between Australia, India, Japan, and the U.S., which aims to create a stable Indo-Pacific economy – for the former to set up semiconductor units in India in return for expertise and specialization. The U.S. also has an official agreement with India for the joint development of the region’s semiconductor ecosystem and a resilient global supply chain.

India offers a skilled workforce and is attracting strong semiconductor investment and develop expertise in advanced chip manufacturing and design. As the global supply chain for semiconductors targets less reliance on a few companies, other Asian countries are taking the mantle and trying to grasp the advantage of the opportunities that this global transition is creating.

Countries in Asia, such as India, Vietnam, the Philippines, and Malaysia are all building their technological capabilities, with semiconductors at the forefront as governments in the region look to capitalize on this growth, while ensuring that the global chip supply chain becomes more resilient.

Pamir has decades of experience of working with American companies that want to invest in, and take advantage of, the opportunities that are growing in the Asia-Pacific region.

To find out more about our unique blend of qualitative and quantitative research, as well as on-the-ground expertise, contact us today to find out how we can help you take advantage of the huge market opportunities that are emerging.