With Micron's ATMP facility moving into commercial production and fresh investments from domestic players, India's semiconductor push is gaining firmer footing. However, despite its deep talent pool, the country's IC design sector continues to face challenges in building global competitiveness.
India's semiconductor ambitions face hurdles echoing SEA as local IC design sector strives to grow
At Davos, India highlighted progress in semiconductor IC design, with 24 startups—18 VC-backed—signaling efforts to regain design relevance. However, insiders warn that a weak startup ecosystem, limited customers, and ongoing talent migration continue to constrain the domestic IC design sector.
Micron to begin commercial output at Gujarat ATMP plant as India advances semiconductor push
Micron will begin commercial production at its US$2.75 billion ATMP plant in Sanand by end-February 2025. The site is among four semiconductor facilities in India entering pilot runs, reflecting government efforts to resolve operational and infrastructure challenges.
Tata Group to invest US$11 billion in Maharashtra's Innovation City, boosting India's AI and semiconductor ambitions
The Tata Group will invest INR1 trillion (US$11 billion) to build a state-of-the-art Innovation City near Navi Mumbai International Airport, marking a key step in Maharashtra's plan to become a national hub for artificial intelligence, semiconductors, and Global Capability Centres (GCCs), according to ANI, Bloomberg, and Hindustan Times.
SEALSQ, Gujarat govt, and Kaynes SemiCon sign MoU to establish India's first secure post-quantum semiconductor center
SEALSQ Corp, a developer of semiconductors and post-quantum technology solutions, announced on January 21, 2026, that it has signed a non-binding Memorandum of Understanding (MoU) with the Government of Gujarat and Kaynes SemiCon Private Limited, a subsidiary of Kaynes Technology India Limited. The agreement outlines plans to develop India's first Secure Semiconductor Design, Test, and Personalization Center focused on post-quantum cryptography technologies.
Kaynes Semicon secures ISM fiscal support in India chip push
Kaynes Semicon Private Limited, a wholly owned subsidiary of Kaynes Technology India Limited, has signed a Fiscal Support Agreement and related transaction documents with the India Semiconductor Mission (ISM), marking a key procedural milestone in the implementation of government-backed incentives for semiconductor manufacturing.
India-based Paras Defence enters semiconductor packaging with new subsidiary
Paras Defence and Space Technologies Ltd. announced the launch of a new subsidiary, Paras Semiconductor Pvt. Ltd., marking the company's expansion into the semiconductor packaging and assembly sector. The move aims to address gaps in India's domestic capability for advanced semiconductor packaging, particularly for defence and strategic electronics applications.
Higher display import duties signal India's push to localize flat panel manufacturing
New Delhi has raised the basic customs duty (BCD) on imported flat panel displays to 20% while lowering duties on open cells and key display components to 5%, in a policy move aimed at strengthening domestic electronics manufacturing and correcting an inverted duty structure. India's Finance Ministry announced the changes as part of India's broader "Make in India" initiative.
Article edited by Joseph Chen
