Prime Minister Narendra Modi on August 15 announced plans to expand India’s semiconductor manufacturing ecosystem, saying the country will establish five to eight additional chip plants over the next seven to eight years. Addressing the nation from the Red Fort on the 80th Independence Day, Modi said three semiconductor facilities have already commenced operations. He positioned the expansion within the government’s broader push for Make in India, Vocal for Local, swadeshi and Atmanirbhar Bharat.Three Semiconductor Facilities Already OperationalThe latest announcement comes as India’s semiconductor programme moves from approvals towards commercial production. A July 15 Cabinet statement said 12 manufacturing projects had been approved under the first India Semiconductor Mission, involving cumulative investments exceeding Rs 1.64 lakh crore.
Three facilities operated by Micron, Kaynes and CG Semi have already begun commercial production. All three are located in Sanand, Gujarat, and focus on semiconductor assembly, testing and packaging.
Micron started commercial production in February 2026, followed by Kaynes on March 31 and CG Semi on July 4. Another approved facility is expected to begin production during 2026.The 12 sanctioned projects include one silicon fabrication facility, one silicon-carbide fab, an integrated gallium-nitride Mini/Micro-LED display facility and nine semiconductor packaging units. The country’s first silicon fabrication plant is scheduled for commissioning in 2028.Semicon 2.0 To Broaden India’s Chip EcosystemThe government also approved Semicon 2.0 in July with an outlay of Rs 1,27,500 crore. The programme covers areas including chip design, manufacturing equipment and materials, fabrication facilities, packaging, research and workforce development.
However, the government has not yet provided details on the proposed five to eight plants announced by Modi. It remains unclear how the new projects will overlap with or complement the 12 facilities already approved under the first mission.Details regarding the proposed locations, companies, investment commitments and production capacities of the additional facilities are also yet to be disclosed. The government has not specified how many of the new plants would focus on fabrication, compound semiconductors or packaging.The fresh target nevertheless signals an expansion of India’s efforts to establish a domestic semiconductor ecosystem and reduce reliance on overseas supply chains.