India to Establish First Domestic Semiconductor Fabrication Facility in Gujarat by 2028

India's Semiconductor Industry on Track to Reach Self-Reliance

India is poised to establish its first semiconductor fabrication plant in Dholera by 2028, following a rapid expansion of the domestic industry. According to Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, four semiconductor plants are expected to be ready by 2026, with two more scheduled to begin operations by 2027.

Vaishnaw outlined the progress made in the sector over the last year during the inauguration of the Kaynes Semicon Plant at Sanand, Gujarat. He noted that while the first plant was inaugurated on February 28, the second facility commenced operations on March 31, with a third plant scheduled to begin work by July. The Minister emphasized the focus on building a complete domestic manufacturing ecosystem under the India Semiconductor Mission 2.0.

Under the Semicon 2.0, the Prime Minister has given clear guidance that the entire ecosystem must come to India, with chemicals, gases, and machines used for making semiconductor chips to be manufactured domestically. Vaishnaw highlighted the growth of the technical workforce, stating that 60,000 engineers across 315 universities in the country are currently being prepared to compete globally.

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The production at the Sanand facility started within 14 months of its foundation, which Vaishnaw attributed to diligent leadership and follow-up. Speaking to mediapersons, he noted that the event marked a significant milestone for India, creating a new identity for the country in the world. Prime Minister Narendra Modi stated that a new bridge has been built between Sanand and Silicon Valley, marking the current period as the "decade of India."

The Prime Minister highlighted the rapid growth of the domestic electronics landscape, projecting that India's semiconductor market could exceed USD 100 billion dollars by the end of this decade. He noted that the commencement of production at the facility signifies India's strengthening role as a reliable semiconductor supplier in the global market.