Which Indian Company Is Manufacturing Semiconductors in 2026?

You might be wondering, "Who is actually building chips in India?" It’s a fair question. For decades, we bought phones and laptops assembled here, but the brain of the device-the semiconductor-came from Taiwan, South Korea, or the US. That story changed dramatically between 2023 and 2026. If you are looking for the specific company leading this charge, it isn’t just one entity. It’s a consortium led by Tata Electronics and supported by global giants like Micron Technology.

The Indian government’s push has created a landscape where domestic conglomerates partner with international tech leaders to build fabs (fabrication plants) and assembly units. By September 2026, several projects have moved from blueprints to active construction and early production phases. Let’s break down exactly who is doing what, where they are located, and why it matters to your wallet and India’s economic future.

The Big Player: Tata Electronics and Pegatron

If there is one name that dominates headlines regarding full-scale semiconductor fabrication in India, it is Tata Electronics. This subsidiary of the Tata Group signed a landmark agreement with Pegatron, a major Taiwanese electronics manufacturer. Their joint venture is setting up an OSAT (Outsourced Semiconductor Assembly and Test) facility in Assam.

Why Assam? The government offered significant incentives for setting up units in the Northeast to boost regional development. But don’t mistake OSAT for full fabrication yet. OSAT involves packaging and testing chips after they are made. However, Tata didn’t stop there. They also announced plans for a full-fledged wafer fab in Gujarat. A wafer fab is where the actual silicon wafers are etched with circuitry. This two-pronged approach-packaging in the East, fabrication in the West-makes Tata the most comprehensive player in India’s semiconductor ecosystem.

Micron’s Massive Footprint in Gujarat

You might not think of Micron as an "Indian" company because it’s American. But their commitment to India is so deep that they are effectively becoming a local industrial pillar. In 2023, Micron announced a $825 million investment to set up an OSAT unit in Sanand, Gujarat. By 2026, this facility is operational and producing memory chips for smartphones and PCs.

This is crucial because memory chips (DRAM and NAND flash) are essential components. Before Micron arrived, every phone sold in India had these components imported. Now, a significant portion undergoes final assembly and testing on Indian soil. This reduces logistics costs and speeds up supply chains. If you buy a smartphone today, there’s a high chance its memory chip was packaged in Gujarat.

CG Power and the Automotive Chip Push

While Tata and Micron focus on consumer electronics, CG Power and Industrial Solutions is targeting a different niche: automotive and power semiconductors. They partnered with Renesas Electronics, a Japanese giant known for microcontrollers used in cars.

Their joint venture is building an OSAT facility in Gujarat as well. Why does this matter? Modern cars use hundreds of chips. Electric vehicles (EVs) need even more for battery management systems. As India pushes for EV adoption, relying on imports for these critical chips is risky. CG Power’s project aims to localize the supply chain for the automotive sector. By 2026, their facility is ramping up production, helping Indian carmakers reduce dependency on foreign suppliers.

Vedanta and Foxconn: The Ambitious Fab Plan

No discussion on Indian semiconductors is complete without mentioning Vedanta Resources and Foxconn. Anil Agarwal’s Vedanta initially proposed a massive $19.5 billion semiconductor plant in Tamil Nadu. The plan included both a wafer fab and an OSAT unit.

The road hasn’t been smooth. There were delays in securing land and negotiating state-level incentives. By 2026, the project scope was revised. While the initial grand vision faced hurdles, the partnership remains active. Foxconn, best known for assembling iPhones, brings manufacturing expertise, while Vedanta brings capital and raw material access. Their combined effort is still underway, focusing on creating a hub for display panels and semiconductors in Dholera, Gujarat, shifting slightly from the original Tamil Nadu focus in some reports, though Tamil Nadu remains a key site for their broader electronics ambitions. Keep an eye on this duo-they are aiming for long-term dominance in large-scale fabrication.

Why Is This Happening Now?

You’re probably asking, "Why did India wait until 2023-2024 to start serious work?" Two main reasons drove this shift.

• Geopolitical Risk: The pandemic exposed how fragile global supply chains are. When shipping routes closed, electronics manufacturers panicked. Countries realized they needed to make critical components closer to home.
• Government Incentives: The Indian government launched a $10 billion incentive scheme specifically for semiconductors. This covered up to 50% of project costs for companies willing to set up fabs and OSAT units. This financial backing de-risked the investment for private players.

Additionally, demand is exploding. India is now the second-largest smartphone market globally. Every phone sold needs chips. Making them locally cuts import duties and creates jobs. It’s a no-brainer for businesses looking at the next decade.

What Kind of Chips Are Being Made?

It’s important to manage expectations. We aren’t making the most advanced 3nm chips used in the latest iPhones right now. Those require extreme precision and billions in R&D. Instead, India is starting with mature nodes (28nm and above). These are used in:

• Power management ICs (for charging phones)
• Microcontrollers (for washing machines, cars, and IoT devices)
• Memory chips (storage for phones and laptops)

This is a smart strategy. Mature nodes have steady demand and lower technical barriers. Once the ecosystem matures-with trained engineers and reliable supply chains-moving to advanced nodes becomes easier. Think of it as learning to walk before running.

Challenges Ahead

Is everything rosy? Not quite. Building a semiconductor industry takes time. Here are real hurdles:

• Skilled Workforce: We need thousands of specialized engineers. Universities are updating curricula, but experience can’t be rushed.
• Infrastructure: Fabs need pure water and uninterrupted power. Any glitch can ruin millions of dollars worth of wafers. Gujarat and Tamil Nadu offer good infrastructure, but consistency is key.
• Global Competition: China, Vietnam, and Malaysia already have established ecosystems. India must compete on cost and efficiency to attract more orders.

Despite these challenges, the momentum is undeniable. Companies are hiring, factories are rising, and policy support remains strong.

Final Thoughts

So, which Indian company is going to manufacture semiconductors? It’s a team effort led by Tata Electronics, backed by Micron’s investment, CG Power’s automotive focus, and Vedanta’s ambitious fabrication plans. This isn’t just about national pride; it’s about economic resilience. By 2030, experts predict India could meet 20-30% of its domestic semiconductor demand locally. That means fewer imports, more jobs, and cheaper gadgets for you. Watch the developments in Gujarat and Assam closely-they are the heartbeats of this new industrial revolution.