Global semiconductor firms ramp up India presence amid Semicon 2.0
What's the story
The Semicon India 2026 event has drawn major global semiconductor companies, including ASML, Applied Materials, and Lam Research. They are all looking to expand their operations in the nation. The move comes as part of the country's efforts to strengthen its domestic chip manufacturing ecosystem under the Semicon 2.0 initiative.
Expansion plans
ASML's office in India
ASML, a leading lithography equipment manufacturer, has set up an office in India.
The company's Chief Strategic Sourcing and Procurement Officer Allan Wayne said they are optimistic about more of their customers entering the country.
He also revealed that Tata Electronics is the first customer in India to have a 300-millimeter semiconductor fab with a monthly production capacity of 50,000 wafers.
Future prospects
Wayne's optimism for India's semiconductor ecosystem
Wayne stressed the need for multiple fabs in India to scale up production.
He expressed confidence in the country's semiconductor ecosystem, citing supportive policies from Prime Minister Narendra Modi's government and the availability of skilled talent.
Wayne also revealed India's ambition to meet 15-25% of its local semiconductor demand by 2032 through several fabs.
Investment commitments
Investments from competitors
At the Semicon India 2026 event, semiconductor equipment maker Applied Materials announced a $5 billion (₹48,000 crore) investment over the next decade.
This comes after it signed an agreement with the Karnataka government to invest ₹3,600 crore in R&D and manufacturing of chip production equipment.
Another competitor, Lam Research, also announced a ₹10,000 crore investment to set up a silicon component manufacturing facility in India.
Strategic partnerships
Tata Electronics's vendor agreements and park plans
Tata Electronics has signed 16 agreements with vendors to back its ₹1.18 trillion investment in a chip manufacturing unit in Gujarat's Dholera and an assembly and testing unit in Assam.
The company also unveiled plans for a 363-acre park in Dholera that will accommodate around 450 vendors needed by its plant.
Production plans
Indigenous design companies' plans for chip production
Indigenous design companies such as L&T Semiconductor Technologies, IndieSemiC, Axiro, and Aheesa Digital Innovations have announced plans for commercial chip production and scaling up operations.
CG Semi's subsidiary Axiro is already getting its chips manufactured overseas and now plans to produce the new ones at its parent company's semiconductor plant.