India is seeking foreign investments for its indigenous semiconductor industry for the development and design of fabs, ATMP, among others. We look at the latest developments impacting India’s semiconductor ambitions.
According to a news report published by the The Edge Malaysia, Liew Chin Tong, Deputy Minister of Investment, Trade and Industry, Malaysia, on his visit to India on March 18, 2025, spoke on the country’s intention to be part of “India’s semiconductor story.” Liew pointed to India’s expertise in semiconductor equipment, assembly, and testing as key areas of collaboration. With domestic semiconductor market expected to triple from US$38 billion in 2023 to US$109 billion by 2030-Malaysia sees potential for deeper cooperation with India for the component manufacturing. Liew noted that several companies currently investing in India have long-standing operations in Malaysia, creating prospects for trilateral business partnerships and supply chain integration.
The Yamuna Expressway Industrial Development Authority (YEIDA) has provided a new 48-acre land parcel for a semiconductor project. As per a Hindustan Times report on March 9, 2025, the newly designated land, located in Noida Sector 28, Uttar Pradesh, has been assigned to Vama Sundari Investments—a joint venture between the HCL Group and Foxconn. This location features critical infrastructure, along with presence of the Medical Device Park and other operational industries. The original land allotment was in Noida Sector 10. However, on March 6, 2025, YEIDA issued a revised letter of intent to Vama Sundari, officially offering the alternative plot in Noida Sector 28. The company plans to invest INR 37.06 billion (US$425 million) in setting up an outsourced semiconductor assembly and test (OSAT) facility and is expected to create approximately 4,000 jobs.
Per a Business Standard report on October 2, 2024, iPhone contract manufacturer Foxconn will invest up to INR 4.24 billion in its yet-to-be-named semiconductor joint venture (JV) with HCL for an OSAT plant in India. According to an official company note: “If the potential investment of no more than US$13,310,000 (approx. INR 1.12 billion) is included, the total accumulated holding will not exceed US$50,510,000 (approx. INR 4.24 billion) and the cumulative shareholding ratio will be adjusted based on the actual capital increase.”
Prior to this, Foxconn had invested about INR 2.46 billion in the JV via its subsidiary Big Innovation Holdings and further increased it to INR 3.12 billion through Foxconn Hon Hai Technology India Mega Development Private Limited. Foxconn has a 40 percent stake in its JV with HCL.
Tata Electronics and PSMC have completed the technology transfer pact for fab unit in Gujarat. The Economic Times is reporting – as of September 27 – that Tata Electronics has reached a definitive agreement with the Taiwanese foundry for the design and construction support to build India’s inaugral AI-enabled greenfield semiconductor fabrication plant. Further, in order to ensure the effective transfer of technology to Tata’s fab unit, PSMC will license a broad portfolio of technologies, alongside providing engineering support. Tata’s Gujarat fab is set to manufacture chips for applications like power management IC, display drivers, microcontrollers (MCU), and high-performance computing logic. These chips will target demand in AI, automotive, computing, data storage, and wireless communication markets.
Scheme
Applicant
Total Project Cost (INR Billion)
Eligible Project Cost (INR Billion)
Incentive Approved (INR Billion)
Modified scheme for setting up of semicon fabs in India
TEPL (commercial fab)
915.26
679.56
339.78
Modified scheme for setting up of compound semicon/silicon photonics/sensors fab and semicon/ATMP/OSAT facilities in India
Micron Technology Inc. (ATMP)
225.16
225.16
112.58
TEPL (OSAT)
271.20
204.49
102.25
CG Power & Industrial Solutions Ltd. (ATMP)
75.84
70.02
35.01
Total
1487.46
1179.23
589.62
(Source: Indian Express using Government of India’s internal documents)
Design Linked Incentive (DLI) Scheme
3 components:
Link to PDF: Gazette Notification on Thursday, December 30, 2021.
Link to Press Release dated January 16, 2022: Applications invited under the Design Linked Incentive (DLI) Scheme from domestic semiconductor chip design firms
A dedicated portal has been made available – www.chips-dli.gov.in – for inviting online applications from January 1, 2022 to December 31, 2024. The applicants can find the guidelines of the DLI Scheme on the portal and register themselves for availing support under the scheme.
On September 21, 2022, the Cabinet, chaired by Prime Minister Narendra Modi, approved key modifications to the Program for Development of Semiconductors and Display Manufacturing Ecosystem in India:
Under the modified program, a uniform fiscal support of 50 percent of project cost shall be provided across all technology nodes for setting up of semiconductor fabs. Given the niche technology and nature of compound semiconductors and advanced packaging, the modified program shall also provide fiscal support of 50 percent of capital expenditure in pari-passu mode for setting up of compound semiconductors/silicon photonics/sensors / discrete semiconductors fabs and ATMP/OSAT.
This article was originally published on April 6, 2021. It was last updated March 11, 2025.
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