MeitY Says 5 to 6 Semiconductor Projects Will Go Live in India by Year End

MeitY Secretary: Five to Six India Semiconductor Projects to Reach Commercial Production by 2026 Year-End

The Secretary of the Ministry of Electronics and Information Technology, S. Krishnan, has confirmed that five to six of the twelve semiconductor and display manufacturing projects approved under India's Semicon 1.0 programme are expected to achieve commercial production status by the end of 2026. The projection, shared in a media briefing in August 2026, marks the most concentrated period of operational milestones in India's semiconductor manufacturing programme to date and represents a significant acceleration in the pace at which India's chip manufacturing ecosystem is coming online.

Projects Already in Commercial Operation

Three of the twelve approved Semicon 1.0 projects have already commenced commercial production. Micron Technology's ATMP facility in Sanand, Gujarat was the first to reach full commercial production in early 2026, packaging DRAM and NAND chips for Micron's global customers. CG Power's OSAT facility in Sanand, developed in partnership with Renesas Electronics and Stars Microelectronics, has its G1 pilot line operational at 500,000 chip units per day and is scaling toward its G2 line at 14.5 million units per day. Kaynes Semicon's OSAT facility in Mysuru, Karnataka reached commercial production in March 2026, adding another operational packaging node to India's semiconductor manufacturing map.

Projects Expected to Come Online by Year-End

The additional two to three projects targeting commercial production by December 2026 include the Tata Electronics-PSMC Dholera fab as the most significant, with first silicon targeted for December. Other projects approaching operational status include additional OSAT and ATMP facilities from companies that have not yet been publicly disclosed pending ISM confirmation, as well as compound semiconductor and display facilities that are part of the broader Semicon 1.0 approval set. MeitY Secretary Krishnan indicated that the ministry is actively monitoring project timelines and has mechanisms in place to provide additional support to projects facing construction or equipment procurement delays that could push milestones into 2027.

Supply Chain and Ecosystem Implications

Having five to six operational semiconductor projects by year-end 2026 creates a meaningful local manufacturing base that begins to attract surrounding supply chain investments. Chemical suppliers, packaging materials companies, logistics providers specialised in semiconductor transport, calibration and maintenance service firms, and process engineering consultants are all more likely to establish India presences once there are multiple operating facilities to serve. This ecosystem flywheel effect, where each new operational facility makes it more attractive for the next one to locate in India, is the dynamic that transformed Taiwan, South Korea, and Malaysia into self-reinforcing semiconductor manufacturing hubs over multiple decades of policy-supported investment.

Setting the Stage for Semicon 2.0

The five-to-six projects milestone serves as critical validation for Semicon 2.0's investment case. Potential applicants for Semicon 2.0 fab and OSAT incentives will be able to point to multiple operating facilities in India as evidence that the government's promises of support are credible, the administrative framework works, and the India manufacturing environment is viable for semiconductor operations. This proof-of-execution is particularly important for international companies that are considering India investments but remain uncertain about operational risks including infrastructure reliability, regulatory complexity, and workforce availability. The cluster of operational projects by end-2026 provides the reassurance that many international investors have been waiting for before committing to the next wave of India semiconductor manufacturing capital.