Bharat Forge will make semiconductor chips now
What's the story
Bharat Forge, India's leading forging and engineering company, has made its entry into the billion-dollar semiconductor industry. The company's chairman Baba Kalyani revealed this development in an interview with CNBC-TV18. He said that Bharat Forge is already working with three of the world's five largest semiconductor companies and is securing major orders from them.
Project details
Semiconductor project in collaboration with global firms
Kalyani revealed that Bharat Forge is working on a new semiconductor project. The company is collaborating with several firms to manufacture parts for lithography machines, an essential element of chipmaking equipment. This move comes as India pushes to establish a domestic semiconductor ecosystem under the India Semiconductor Mission (ISM) 2.0.
ISM expansion
Government support for semiconductors
Under the ISM, the Indian government has secured investment commitments of over ₹1.65 lakh crore across 12 approved semiconductor fabrication, assembly, testing and packaging (ATMP) projects. The program was launched with a ₹76,000 crore budget and is now being expanded under ISM 2.0 to include semiconductor equipment, materials and indigenous intellectual property.
Business growth
Kalyani on defense business growth and export potential
Kalyani also spoke about the growth of Bharat Forge's defense business, saying that "defense used to be at component level earlier and now it's a platform for us." He expects a major surge in the Indian defense sector over the next five years. Exports currently account for nearly 40% of their total defense sales, highlighting the company's global reach.