By 2027, India Aims to Produce Up to 80 Million Chips Per Day

Manufacturing Hub India By 2027, India Aims to Produce Up to 80 Million Chips Per Day

2026-04-01 From Sebastian Gerstl | Translated by AI 2 min Reading Time

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India's semiconductor plans are right on track, according to analysts at Trendforce and data from the India Electronics and Semiconductor Association (IESA). Accordingly, the country's chip production capacity could increase to 75 to 80 million units per day by the end of 2026 or early 2027 once the plants currently under construction go into operation.

Made in India: According to the India Electronics and Semiconductor Association (IESA), the country should be able to produce between 75 and 80 million chips by the beginning of 2027, once the plants currently under construction become operational.(Image: Pixabay (Montage: Sebastian Gerstl)) — Made in India: According to the India Electronics and Semiconductor Association (IESA), the country should be able to produce between 75 and 80 million chips by the beginning of 2027, once the plants currently under construction become operational.
(Image: Pixabay (Montage: Sebastian Gerstl))

In an interview with the Indian news agency ANI, IESA President Ashok Chandak stated that the additional capacity will come from several semiconductor projects that are planned to be commissioned in stages. Once these facilities become operational, India's chip assembly and testing capacity is expected to expand significantly.

Chandak added that while some of the production will meet domestic demand, a significant portion is expected to be exported. With the ramp-up of these plants, India's position within the global semiconductor value chain is also expected to evolve.

Currently, India's foray into the semiconductor sector is primarily focused on chip assembly and testing rather than wafer manufacturing. For example, Micron Technology's recently commissioned facility functions as an ATMP (Assembly, Testing, Marking and Packaging) plant and has also been dubbed a "smart packaging" facility. Other projects currently under development - including those led by Tata Electronics, Kaynes Technology and CG Power and Industrial Solutions - are being set up as OSAT (Outsourced Semiconductor Assembly and Test) facilities to perform similar assembly and testing tasks, according to Trendforce market analysts.

According to Chandak, the Micron plant will manufacture memory products such as DRAM, NAND and SSD. As workloads in the field of artificial intelligence continue to increase, demand for memory chips is also rising, while sectors such as smartphones, laptops and automotive electronics continue to struggle with supply bottlenecks.

Primarily Designed for Consumer, Industrial and Automotive Applications

The chips assembled and tested in India are intended to support AI systems as well as applications in vehicles, laptops and smartphones. Initially, these chips will mainly be located in the 14 nm to 28 nm technology nodes, while the wafers themselves will continue to be sourced from abroad.

As part of the upcoming projects, Kaynes Technology plans to assemble advanced power modules, including IGBTs and other power components, and manufacture printed circuit boards (PCBs) for electronic systems. These components are destined for industries such as automotive, industrial, consumer electronics and defense.Meanwhile, Tata Electronics is preparing to operate an OSAT facility in Jagiroad, Assam, focusing primarily on power devices and multi-chip modules for industrial and automotive applications. Chandak pointed out that the plant could reach a capacity of more than 50 million units per day.(sg)

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