**Executive Summary**
The document responds to questions regarding investment trends in the IT and semiconductor sectors, specifically concerning government-approved semiconductor projects. It details the initiatives and achievements under the 'Semicon India Programme,' aimed at developing a comprehensive semiconductor manufacturing ecosystem. The information was provided in response to Unstarred Question No. 756 on February 4, 2026.
**Key Points / Main Content**
* **Government Initiatives and Strategy:**
* The government aims to develop a complete semiconductor ecosystem, from design to manufacturing, under the 'Semicon India Programme' with an outlay of Rs. 76,000 crore.
* The India Semiconductor Mission (ISM) has been set up as the nodal agency for appraisal and recommendations of semiconductor projects.
* **Approved Projects:**
* The government has approved 10 projects with investments of about Rs. 1.6 Lakh Crore, including 2 fabs and 8 packaging units. Four units have started pilot production.
* 24 chip design projects have been supported through startups, with 16 completing tapeouts and 13 receiving VC funding.
* 350 universities have been given access to EDA tools, used by 65 thousand engineers.
* **Semiconductor Manufacturing Projects (Annexure):**
* Details of 10 approved semiconductor manufacturing projects are provided in the annexure, including company names, investment amounts, locations, technology partnerships, and production capacities. Some key projects include:
* Micron Technology Inc. in Gujarat.
* Tata Electronics Private Limited (TEPL) in Gujarat and Assam.
* CG Power and Industrial Solutions Limited in Gujarat.
* Kaynes Technology India Limited (KTIL) in Gujarat.
* Vama Sundari Investments (Delhi) Private Limited (VSIPL) in Uttar Pradesh.
* 3D Glass Solutions Inc. (3DGS) in Odisha.
* SiCSem Private Limited in Odisha.
* Continental Device India Private Limited (CDIL) in Punjab.
* Advanced System in Package Technologies Private Limited (ASIP) in Andhra Pradesh.
* **IT Sector Performance:**
* The government is actively promoting the growth of the IT sector, especially in smaller towns and cities.
* Export, Domestic and Total revenue data for the IT sector from 2020-21 to 2024-25 (estimates) is provided, as published by NASSCOM.
**Impact Analysis**
**Stakeholder: Semiconductor Manufacturers and Related Industries**
* **Impact:** Benefit from government support, funding, and establishment of manufacturing facilities, and increased demand.
* **Action Required:** Implement approved projects, establish manufacturing facilities, and leverage government support for growth.
**Stakeholder: Engineering Universities and Engineers**
* **Impact:** Increased access to EDA tools, which enhance their education, skills, and employment opportunities in the semiconductor sector.
* **Action Required:** Leverage EDA tool access for research, development, and training to enhance the semiconductor workforce.
**Stakeholder: Startups in Chip Design**
* **Impact:** Access to funding and support for chip design projects, fostering innovation and growth.
* **Action Required:** Utilize the funding to further develop and commercialize chip design projects.
**Stakeholder: IT Sector Companies**
* **Impact:** Government promotion and support for growth, especially in smaller towns and cities.
* **Action Required:** Expand operations and leverage government initiatives to drive growth.
Key Entities Referenced
Semicon India Programme: A government program with a total outlay of Rs. 76,000 crore for the development of semiconductor and display manufacturing ecosystem in the country.
India Semiconductor Mission (ISM): Nodal agency for appraisal and recommendations of semiconductor projects.
Ministry of Electronics and Information Technology: The ministry responsible for answering questions about investment trends in IT and semiconductor sectors.
Atmanirbhar Bharat: A vision of the Prime Minister, to make in India, make for the world
Gujarat: Several semiconductor manufacturing facilities are being established in Gujarat.
GOVERNMENT OF INDIA
MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY
LOK SABHA
UNSTARRED QUESTION NO. 756
TO BE ANSWERED ON: 04.02.2026
INVESTMENT TRENDS IN IT AND SEMICONDUCTORS SECTORS
756. MS KANGNA RANAUT:
Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:
(a) the details of semiconductor-related projects approved by the Government in recent years including
the number of projects approved and their broad nature;
(b) the present status of implementation of these approved semiconductor projects including stage of
execution and expected timelines for commencement of operations; and
(c) the steps being taken by the Government to strengthen inter-ministerial coordination and
transparency in reporting investment trends and project progress in strategic sectors such as Information
Technology (IT) and semiconductors?
ANSWER
MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY
(SHRI JITIN PRASADA)
(a) to (c): The semiconductor development strategy is inspired by Hon’ble Prime Minister’s vision of
Atmanirbhar Bharat and Make in India, Make for the world. As part of this strategy, India aims to
develop a complete ecosystem, ranging from design, fabrication, assembly, testing, packaging and
module manufacturing.
Given the foundational nature of semiconductor industry for the economy, the Government launched
the ‘Semicon India Programme’ with a total outlay of Rs. 76,000 crore for the development of
semiconductor and display manufacturing ecosystem in the country. Following are salient achievements
under this Programme:
● Government has approved 10 projects with envisaged investments of about Rs. 1.6 Lakh
Crore which includes 2 fabs and 8 packaging units. These units inter-alia include CMOS
(Silicon) fab, Silicon Carbide fab, advanced packaging, memory packaging, etc. These
projects are in various stages of implementation and pilot production has started in 4 units.
● 24 chip design projects have been supported through startups. 16 have completed tapeouts
and 13 have received VC funding.
● 350 universities have been provided access to EDA tools, used by 65 thousand engineers
The details of the approved Semiconductor manufacturing facilities are placed in Annexure.Government has setup India Semiconductor Mission (ISM) as nodal agency for appraisal and
recommendations of such semiconductor projects. In-addition to the semiconductor experts, the
representatives from various ministries/Departments are also present to advise ISM.
For IT Sector, The Government of India is actively promoting its growth, especially in smaller towns
and cities. The performance of this sector over the last 5 years and estimates for 2024-25, as published
by the National Association of Software and Services Companies (NASSCOM), is mentioned below:
(in USD Billion)
2020-21 2021-22 2022-23 2023-24 2024-25 (E)
Exports 152 178 194 214.4 224.4
Domestic 45 49 51 54.4 58.2
Total Revenue 196 227 245 269 283
(E) = Estimate
Foreign Direct Investment in “Computer Software and Hardware” sector and “Services” in the IT
Sector is published online by Department from Promotion of Industries and Internal Trade (DPIIT) on
their website on quarterly and yearly basis. Similarly, investment details of approved projects under
India Semiconductor Mission are also reported publicly by Press Information Bureau.
*******Annexure
Details of approved semiconductor manufacturing projects:
1. Micron Technology Inc. is establishing semiconductor manufacturing facility in Gujarat with
an investment of Rs.22,516 crore. Micron’s facility in India will enable assembly and test
manufacturing for both DRAM and NAND products and address demand from domestic and
international markets. The production capacity is around 14 million units per week.
2. Tata Electronics Private Limited (TEPL) is establishing semiconductor manufacturing
facility in Gujarat with an investment of Rs. 91,526 crore. The fab facility will be set up in technology
partnership with PSMC, Taiwan. The production capacity of the project would be around 50,000 wafer
starts per month (WSPM).
3. Tata Electronics Private Limited (TEPL) is establishing semiconductor manufacturing
facility in Assam with an investment of Rs.27,120 crores. The facility will use indigenous
semiconductor packaging technologies with a production capacity of 48 million units per day.
4. CG Power and Industrial Solutions Limited is establishing semiconductor manufacturing
facility in Gujarat with an investment of Rs. 7,584 crore. The facility will be set up as a joint venture
partnership with Renesas Electronics America Inc., USA, and STARS Microelectronic, Thailand. The
Technology would be provided for this facility by Renesas Electronics Corporation, Japan and STARS
Microelectronic, Thailand. The production capacity would be around 15.07 million units per day.
5. Kaynes Technology India Limited (KTIL) is establishing semiconductor manufacturing
facility in Gujarat with an investment of Rs. 3,307 crores for Wire bond Interconnect, Substrate Based
Packages. The Technology would be provided by ISO Technology Sdn. Bhd. and AOI Electronics
Co. Ltd. (AOI). The facility will have the capacity to produce more than 6.33 million chips per day.
6. Vama Sundari Investments (Delhi) Private Limited (VSIPL) is establishing semiconductor
manufacturing facility in Uttar Pradesh with an investment of Rs 3,706 crores for display driver ICs
(DDIC) using Gold (Au) Bump technology along with chip probing facilities and die processing
services. The Technology would be provided by Hon Hai, Taiwan. The facility will be set up as a joint
venture partnership between VSIPL and Foxconn, India. The production capacity would be around
20K wafers per month/36 million chips per month.
7. 3D Glass Solutions Inc. (3DGS) is establishing semiconductor manufacturing facility in Odisha
with an investment of Rs. 1,943 crores. The plant will handle the assembly of packaged products such
as Flip Chip Ball Grid Array (FCBGA) assembly, Radio Frequency System in Package (RF SiP),
Antenna in Package System in Package (AiP SiP), glass interposers with passives and silicon bridges
and 3D Heterogeneous Integration (3DHI) modules. The Proposed installed capacity for glass panel
substrate production, assembly and 3DHI is around 5800 panels per month, 4.20 million units per
month, and 1100 units per months respectively.
8. SiCSem Private Limited is establishing semiconductor manufacturing facility in Odisha with
an investment of Rs. 2,066 crores. The facility will be set up in technology partnership with Clas-SiC
Wafer Fab Ltd. for SiC fab and Continental Device India Pvt. Ltd. for packaging. The production
capacity is 5,000 wafers/month, and the packaging capacity is 8 million units/month.
9. Continental Device India Private Limited (CDIL) is expanding its semiconductor
manufacturing facility in Punjab, with an investment of Rs. 117 crores. The facility will manufacture
high-power discrete semiconductor devices such as MOSFETs, IGBTs, Schottky Bypass Diodes, and
transistors, both in Silicon and Silicon Carbide. The production capacity will be around 158.38 million
units/annum.10. Advanced System in Package Technologies Private Limited (ASIP) is establishing
semiconductor manufacturing facility in Andhra Pradesh, with an investment of Rs. 480 crores. The
facility will be set up in technology partnership with APACT Co. Ltd, South Korea. The production
capacity of the facility would be around 96 million units/annum.
******