India advances semiconductor push with expanded ISM roadmap

Summary

India is expanding its semiconductor strategy under the next phase of the India Semiconductor Mission (ISM), with fresh funding proposals and new manufacturing milestones underscoring its push to strengthen domestic chip capabilities.

NEW DELHI, March 12, 2026 — India is accelerating efforts to build a domestic semiconductor ecosystem, with policymakers outlining an expanded roadmap under ISM 2.0 following progress in assembly, testing and packaging operations.

The move follows a strong start to 2026 for the sector, highlighted by the launch of commercial operations at India’s first large-scale memory assembly facility.

From policy to production

On February 28, Prime Minister Narendra Modi inaugurated Micron Technology’s assembly, testing, marking and packaging (ATMP) plant in Sanand, Gujarat. The facility has begun shipping memory products assembled in India to global customers including Dell Technologies.

Meanwhile, a joint venture between HCL and Foxconn recently broke ground on an OSAT plant in Uttar Pradesh focused on display driver chips, which are widely used in smartphones and other electronics.

Electronics manufacturing momentum

India’s semiconductor push is closely tied to its expanding electronics assembly sector. Industry estimates suggest roughly 25% of global iPhone production now takes place in India, driven by supply-chain diversification and government incentive programs.

Long-term roadmap

IT Minister Ashwini Vaishnaw has reiterated India’s ambition to rank among the world’s leading semiconductor ecosystems by the early 2030s.

Officials say the strategy now includes strengthening upstream capabilities such as specialty gases, materials and semiconductor equipment manufacturing, alongside continued investment in chip design and advanced packaging.

Why this matters

• Supply chain resilience: Domestic capacity reduces reliance on imported chips.
• Industrial policy: Semiconductor investment anchors India’s broader manufacturing strategy.
• Global competition: India is positioning itself alongside established Asian and Western chip hubs.

FAQs

Q1. What is ISM 2.0?

It is the next phase of India’s semiconductor strategy focused on expanding domestic manufacturing and supply chains.

Q2. Is India fabricating chips yet?

Most current projects focus on assembly, testing and packaging rather than full wafer fabrication.

Q3. What is the HCL–Foxconn project?

A joint OSAT facility in Uttar Pradesh aimed at display driver chips.

Q4. How important is Apple production to the ecosystem?

Electronics assembly growth—particularly iPhones—has supported broader supplier investment in India.

Q5. What are India’s long-term goals?

Officials aim to strengthen capabilities across design, materials and manufacturing by the early 2030s.