India Targets Five Semiconductor Plants by 2026, Boosting Advanced Manufacturing Infrastructure Development

July 10, 2026

In July 2026, Union Minister for Electronics and IT Ashwini Vaishnaw announced that five semiconductor plants in India are expected to be operational by the end of 2026. Of the 12 semiconductor projects approved under the India Semiconductor Mission, three are already in commercial production, while two more are scheduled for inauguration in the coming months.

Prime Minister Narendra Modi inaugurated India's first semiconductor plant on February 28 and the second on March 31, 2026. The third, the CG Power OSAT facility in Sanand, Gujarat, entered commercial production last week after moving from groundbreaking to production in just 27 months.

The announcement marks an important milestone for semiconductor manufacturing in India. Beyond adding production capacity, it signals the rapid development of semiconductor manufacturing infrastructure, strengthening the country's electronics supply chain, attracting further semiconductor investment in India, and laying the foundation for future advanced manufacturing projects.

Three Operational Semiconductor Plants in India: Current Manufacturing Capacity

India's first semiconductor plant, Micron Technology's Assembly, Test, Marking, and Packaging (ATMP) facility in Sanand, Gujarat, was inaugurated by PM Modi on February 28, 2026. It is an ATMP facility producing DRAM and NAND flash memory packages for mobile devices, data centres, and automotive applications, with Micron's total investment commitment in India reaching USD 2.75 billion. The facility's products are exported to global markets and serve as a demonstration that India can meet the quality standards that global technology companies require.

The second plant, Kaynes Semicon's OSAT facility, also in Sanand, was inaugurated on March 31. Kaynes achieved commercial production by March 2026, just 14 months after breaking ground. It shipped India's first commercially produced 900 multi-chip modules to Alpha & Omega Semiconductor in October 2025 and is scaling to 6.3 million chips per day.

The third plant, CG Power's OSAT facility in Sanand, built in partnership with Japan's Renesas Electronics entered commercial production last week with an investment of over INR 7,600 crore. The facility's groundbreaking was on March 13, 2024, making the 27-month construction-to-production timeline one of the fastest industrial buildouts of this complexity in India's manufacturing history.

Chips manufactured at the CG Power Sanand facility serve automobiles, scooters, and industrial equipment in India and are being exported to Japan, the United States, and Europe. Young women from Jharkhand, Chhattisgarh, Madhya Pradesh, Bihar, Jammu and Kashmir, Kerala, and Gujarat are employed as semiconductor operators after specialised training in Malaysia, reflecting a social dimension to the semiconductor investment in India that extends well beyond the technology itself.

What the Five-Plant Target Means for Manufacturing Infrastructure

Five operational semiconductor plants by the end of 2026 represents the transition from demonstration to ecosystem. Three facilities in Sanand alone create a geographic cluster, a concentration of semiconductor manufacturing know-how, skilled workers, supplier relationships, and quality infrastructure that makes the next investment easier and faster than the last. The 27-month construction-to-production timeline at the CG Power facility is itself a proof point that India's semiconductor manufacturing infrastructure development can match international delivery expectations.

The remaining seven of 12 approved projects include the Tata Electronics-PSMC Dholera fab, a 300mm silicon fab targeting 50,000 wafer starts per month at 28nm-110nm nodes, with first silicon targeted for December 2026. The India Semiconductor Mission has disbursed INR 5,000 crore to date against the approved outlay.

A Budget 2026-27 allocation of INR 8,000 crore, the largest single-year outlay since the programme launched, alongside the ISM 2.0 announcement focused on semiconductor equipment, materials, and advanced design, signals that the government is expanding the framework as the initial plants achieve production.

There are also 12 semiconductor units under construction simultaneously, 24 deep-tech chip design startups active in the ecosystem, over 70,000 youth trained in chip design, and 315 academic institutions and 104 startups supported under the Design Linked Incentive scheme. The semiconductor industry in India is being built on three layers at once: manufacturing facilities, design capability, and workforce development.

The Electronics Component Manufacturing Scheme has approved 22 proposals with projected investment of INR 41,863 crore for PCBs, camera modules, display drivers, and passive components that supply the electronics assembly ecosystem surrounding these semiconductor plants.

The Infrastructure Demands That Five Plants Create

Each semiconductor manufacturing facility places highly specific demands on the industrial infrastructure around it. An OSAT facility requires precision cleanroom construction, ultra-pure water systems, temperature and humidity control to within tight tolerances, chemical delivery and exhaust management for die attach and wire bonding processes, vibration isolation platforms for sensitive assembly and test equipment, and quality systems aligned to automotive IATF 16949 and customer-specific requirements.

The CG Power-Renesas partnership is significant precisely because it brings not just investment but global technology, manufacturing practices, and quality systems from one of the world's most demanding automotive chip manufacturers. Matching those standards in a greenfield Indian facility required engineering discipline of a kind that will become the benchmark expectation for every future semiconductor facility India commissions. The advanced manufacturing infrastructure required for semiconductor production is more exacting than almost any other industrial category.

Getting it right from the design stage is not optional. It determines whether the facility can win the design approvals and supply contracts that make the investment commercially viable.

What Comes After Five: The Longer Infrastructure Opportunity

Five plants by end-2026 are the beginning of a much larger infrastructure programme. Union Minister Vaishnaw has set a target of India becoming a top six semiconductor nation by 2032 and a top three nation by 2047.

Achieving those targets requires not just the 12 currently approved projects, but continued pipeline development, supply chain localisation, and the infrastructure ecosystem that surrounds semiconductor production: chemical suppliers, gas suppliers, equipment maintenance firms, specialised logistics providers, and the utility infrastructure that semiconductor facilities require 24 hours a day, seven days a week, with no tolerance for disruption.

International partnerships are also strengthening confidence in India's long-term semiconductor ecosystem. Intel's CEO Lip-Bu Tan signed an MoU with Odisha to bring substrate manufacturing technology to India during a visit witnessed by Union Minister Vaishnaw, a development that signals international semiconductor companies are actively developing India-specific infrastructure roadmaps rather than monitoring from a distance.

Each MoU and each new facility create anchoring effects: it becomes easier to attract the next investor when the one before has already validated India's infrastructure quality, workforce capability, and regulatory reliability. ‘Five plants by year-end’ is the proof of concept. The next fifty are the industrial policy objective.

Five semiconductor plants in five years. The infrastructure is proven, the workforce is training, and the design ecosystem is building. The next five will come faster than the first five did.

IMARC Engineering's Perspective

The rapid expansion of semiconductor manufacturing in India is creating demand for highly specialised engineering, project management, utility planning, and cleanroom infrastructure. India's semiconductor manufacturing infrastructure buildout is one of the most technically demanding categories of industrial project development. A semiconductor OSAT or ATMP facility requires cleanroom design, precision HVAC systems with controlled temperature, ultra-pure water, specialised chemical handling for die attach, vibration isolation for sensitive equipment, and quality systems aligned to international standards including IATF 16949 for automotive customers and customer-specific quality requirements from Renesas, Micron, or other anchor partners.

At IMARC Engineering, we bring EPCM expertise to industrial facility projects that demand this level of technical precision, from detailed process engineering and utilities design to procurement management and commissioning support.

As India's semiconductor industry in India matures from five operational plants to the next ten, the quality of the manufacturing infrastructure built at each stage will determine whether Indian OSAT and ATMP facilities attract the design wins, technology partnerships, and export volumes that the investment thesis requires.