New chip plants could raise India’s output to 75–80 million per day: IESA

India’s semiconductor ecosystem could reach a production capacity of 75–80 million chips per day as newly announced facilities begin operations by the end of this year or early next year, according to Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA) and SEMI India.

Speaking to ANI, Chandak said the capacity would come from several semiconductor projects that are expected to start production in phases. Once these plants become operational, India’s chip assembly and testing capabilities will expand significantly. “Together, the companies that have announced plants could bring capacity to around 75–80 million chips per day by the end of the year or early next year, depending on their timelines,” he said.

Chandak said such output would represent a major step for the country’s semiconductor industry. While some of the production will serve domestic demand, a significant portion is expected to be exported. He added that India’s position in the global semiconductor value chain could change once these facilities begin operations.

He noted that most of the near-term activity in India will focus on assembling and testing chips rather than manufacturing wafers. For example, the recently inaugurated Micron Technology facility operates as an ATMP (Assembly, Test, Mark and Pack) plant, also described as a smart packaging unit. Other projects under development, including those by Tata Electronics, Kaynes Technology and CG Power and Industrial Solutions, will function as OSAT (Outsourced Semiconductor Assembly and Test) facilities that perform similar assembly and testing work.

Chandak said the Micron plant will produce memory chips such as DRAM, NAND and SSD components, which are used across several industries. Demand for memory chips has increased with the rise of AI workloads, while sectors such as smartphones, laptops and automotive continue to face supply constraints. The chips assembled and tested in India are expected to support applications including AI systems, automobiles, laptops and smartphones. Initially, most of these chips will fall in the 14-nanometre to 28-nanometre category, while the wafers themselves will continue to be sourced from outside the country.

Among upcoming projects, Kaynes Technology is expected to assemble advanced power modules, including IGBTs and other power devices, and also manufacture printed circuit boards used in electronic products. These components will serve sectors such as automotive, industrial, consumer electronics and defence. Tata Electronics is also preparing to operate an OSAT facility in Jagiroad, Assam, which will produce power devices and multi-chip modules primarily for industrial and automotive uses. According to Chandak, the facility could have a capacity of more than 50 million chips per day.

CG Power’s semiconductor project will focus on integrated circuits used in industrial and automotive applications. The project will be implemented in two phases and could eventually reach a capacity of about 15 million chips per day once fully operational. With multiple projects progressing simultaneously, Chandak said India is expected to strengthen its role in the global semiconductor ecosystem in the coming years.