[News] India’s Chip Output Set to Reach 75–80 Million Units per Day, Marking a New Milestone
India’s semiconductor ecosystem is entering a period of significant transformation. According to the India Electronics and Semiconductor Association (IESA) and its president, Ashok Chandak, the country’s chip production capacity could reach 75 million to 80 million units per day by late 2026 or early 2027 as new facilities come online.
In an interview with ANI, Chandak noted that the additional capacity will stem from several semiconductor projects that are scheduled to begin operations in phases. Once these facilities become operational, India’s chip assembly and testing capabilities are expected to expand substantially.
Chandak added that while part of the output will meet domestic demand, a considerable share is expected to be exported. As these facilities ramp up, India’s position within the global semiconductor value chain is also likely to evolve.
At present, India’s semiconductor push is primarily focused on chip assembly and testing rather than wafer fabrication. For instance, the recently launched Micron Technology facility operates as an ATMP (Assembly, Testing, Marking and Packaging) plant and has also been described as a smart packaging unit.
Other projects under development—including those led by Tata Electronics, Kaynes Technology, and CG Power and Industrial Solutions—are being built as OSAT (Outsourced Semiconductor Assembly and Test) facilities to perform similar assembly and testing functions.
According to Chandak, the Micron facility will handle memory products such as DRAM, NAND, and SSD, which are widely used across multiple industries. As AI workloads continue to grow, demand for memory devices is also on the increase, while sectors such as smartphones, laptops, and automotive electronics continue to face supply constraints. Chips assembled and tested in India are expected to support AI systems as well as applications in automobiles, laptops, and smartphones.
Initially, these chips will mainly fall within the 14nm to 28nm technology nodes, while the wafers themselves will continue to be sourced from overseas.
Among the upcoming projects, Kaynes Technology plans to assemble advanced power modules, including IGBTs and other power components, while also manufacturing printed circuit boards (PCBs) for electronic systems. These components will serve sectors such as automotive, industrial, consumer electronics, and defense.
Meanwhile, Tata Electronics is preparing to operate an OSAT facility in Jagiroad, Assam, focused primarily on power devices and multi-chip modules for industrial and automotive applications. Chandak indicated that the plant could achieve a capacity of more than 50 million units per day.
The semiconductor project led by CG Power and Industrial Solutions will focus on integrated circuits for industrial and automotive applications. The initiative will be implemented in two phases and could ultimately reach a daily capacity of approximately 15 million units.
(Photo credit: FREEPIK)
