India To Have 5-8 New Chip Plants Over Next 7-8 Years: PM Modi

On the eve of India's 80th Independence Day, Prime Minister Narendra Modi announced plans to expand the country's semiconductor manufacturing capabilities. The prime minister stated that five to eight additional chip plants would be established over the next seven to eight years as part of the government's broader initiative to promote "Make in India," "Vocal for Local," and "Atmanirbhar Bharat."

Currently, three semiconductor facilities have already begun commercial production at their Sanand, Gujarat location. These plants, operated by Micron, Kaynes, and CG Semi, focus on semiconductor assembly, testing, and packaging. The three facilities represent the culmination of 12 approved manufacturing projects under the first India Semiconductor Mission, which involved a cumulative investment of over Rs 1.64 lakh crore.

Modi's announcement comes as India transitions from the approval stage to actual commercial production of semiconductors. The government has also approved Semicon 2.0, a program with an allocation of Rs 1,27,500 crore, which covers areas such as chip design, manufacturing equipment and materials, fabrication facilities, packaging, research, and workforce development.

However, the government has not yet provided specific details on the proposed five to eight additional plants, including their locations, companies involved, investment commitments, and production capacities. It remains unclear how these new facilities will complement or overlap with the 12 projects already sanctioned under the first mission.