India Semiconductor & Electronics Manufacturing — Deep Dive Industry Deep Dive · India · 2026 ☾ Dark India’s Semiconductor & Electronics Manufacturing — From Assembly to the Full Value Chain A data-driven examination of how India is building an electronics manufacturing ecosystem, where the semiconductor layer fits, which companies occupy the chain, what government policy is trying to change, and where the structural gaps still remain.
Semiconductors Electronics Manufacturing Supply Chain Industrial Policy Value Chain India 01 · Executive snapshot The headline is growth.
The deeper story is value addition.
India’s electronics manufacturing story is no longer only about assembling imported components.
Production has expanded rapidly, policy has shifted toward components and semiconductors, and new facilities are beginning to appear across packaging, semiconductor manufacturing and component ecosystems. ₹11.3L cr Electronics production in FY2024-25 Government reporting / MeitY ecosystem data ~6× Approx. production growth since FY2014-15 ₹1.9L cr → ₹11.3L cr 24 ECMS applications approved by Dec 2025 Across 9 states ₹12,704 cr Projected investment from those ECMS approvals As of 31 Dec 2025 The key distinction Production growth does not automatically mean that India controls the complete electronics value chain.
The important question is: how much of the component, semiconductor, equipment, materials, design and IP stack is actually created inside India?
02 · Growth India’s electronics manufacturing curve The broad production trajectory shows why electronics has become one of India’s strategically important manufacturing sectors.
The important transition is from a relatively small production base in FY2014-15 toward a multi-lakh-crore manufacturing ecosystem a decade later.
Electronics production — India Selected reported points.
Values are ₹ lakh crore.
Source: Government of India reporting.
FY2014-15 was approximately ₹1.9 lakh crore and FY2024-25 approximately ₹11.3 lakh crore.
03 · What are we actually talking about? “Electronics manufacturing” is not one industry.
A smartphone, server, automobile ECU, telecom radio, medical device or industrial controller is the visible end product.
Underneath it sits a layered industrial system involving semiconductor design, wafers, packaging, printed circuit boards, passive components, displays, camera modules, connectors, batteries, mechanical parts, testing, logistics and contract manufacturing.
Semiconductors Design · wafers · fabs · packaging · testing EMS / ODM Assembly · integration · manufacturing services PCBs Multi-layer · HDI · flexible Displays Panels · modules · sub-assemblies Camera Camera modules · optics · sensors Passives Resistors · capacitors · inductors Mechanical Enclosures · connectors · electro-mechanicals Capital equipment Tools · machines · manufacturing infrastructure This treemap is a structural visualization, not a market-share chart.
Area represents conceptual importance in the ecosystem rather than measured market size.
04 · Complete value chain Follow one chip from idea to product.
The semiconductor supply chain is often misunderstood because “chip manufacturing” sounds like one factory operation.
In reality, value is created across several specialised stages.
01 Architecture Define what the chip must do.
02 EDA + IP Design software, libraries and reusable IP.
03 Chip Design RTL, verification, physical design and tape-out.
04 Wafer Fabrication Build transistors and interconnects on silicon wafers.
05 Packaging Assemble and electrically connect dies.
06 Testing Validate performance, reliability and yield.
07 System Integrate chips into boards and products.
08 End Market Mobile, auto, telecom, AI, industrial and more.
05 · Visual model Where India is moving inside the chain India's historical strength has been particularly visible in engineering talent, software and system-level manufacturing.
The policy push is increasingly directed toward moving deeper into physical semiconductor and component infrastructure.
06 · Policy stack India is not using one semiconductor scheme.
The policy architecture is layered.
Different schemes attempt to solve different points of the industrial stack — from large-scale electronics manufacturing to components, semiconductor fabs, packaging and chip design.
Semiconductor fabs India Semiconductor Mission's semiconductor-fab scheme provides fiscal support of up to 50% of project cost on a pari-passu basis for approved projects.
FAB ATMP / OSAT The compound semiconductor / ATMP / OSAT framework provides fiscal support of 50% of capital expenditure for eligible facilities.
PACKAGING Design Linked Incentive Supports semiconductor design across ICs, chipsets, SoCs, systems and IP cores together with design infrastructure.
DESIGN Electronics Component Manufacturing Scheme Targets displays, camera modules, passive components, electro-mechanicals, PCBs, Li-ion cells, enclosures, supply-chain components and capital equipment.
COMPONENTS Why ECMS matters The missing layer between final assembly and semiconductor independence is a deep domestic component ecosystem.
ECMS was specifically designed to attract investment across this layer and connect Indian manufacturers with global value chains.
07 · Component manufacturing ECMS is the bridge layer.
Semiconductor fabs get most of the attention, but a modern electronics factory requires hundreds of upstream components and sub-assemblies.
ECMS is designed to deepen exactly this layer.
24 Approved applications 9 states · Dec 2025 ₹12,704 cr Projected investment Approved projects ₹1.095L cr Projected production Approved projects 17,003 Projected direct employment As of 31 Dec 2025 ₹1.15L cr ECMS investment proposals reported in Oct 2025 Government reporting on proposals received Note: “proposals received” and “approved applications” are different stages and should not be mixed when analysing policy execution.
08 · Company landscape Who sits where?
There is no single “Indian semiconductor company” category.
Companies participate at different layers: design, manufacturing, packaging, EMS, components, equipment, materials or end-product manufacturing.
Company / group Layer India role Strategic relevance Tata Electronics Semiconductor + electronics Semiconductor manufacturing / packaging initiatives plus electronics manufacturing.
Potential domestic anchor across multiple layers.
Micron Assembly & testing Semiconductor assembly and test ecosystem in Gujarat.
Important entry point for advanced packaging capability.
CG Power / CG Semi Semiconductor packaging Semiconductor facility under India's semiconductor programme.
Broadens domestic packaging capacity.
Kaynes Semicon Semiconductor packaging Sanand semiconductor facility targeting packaged devices.
Demonstrates movement from EMS toward semiconductor value.
Dixon Technologies EMS / ODM Large-scale electronics manufacturing and assembly.
Illustrates India's strength in high-volume system manufacturing.
Foxconn EMS Large electronics manufacturing footprint and supply-chain integration.
Connects India to global electronics production networks.
Samsung Electronics Large manufacturing and export ecosystem.
Major global OEM anchor.
This matrix is a strategic map, not a ranking by revenue or market cap.
Corporate structures and projects evolve, so individual facility status should be checked against company filings and government announcements.
09 · Geography Manufacturing is becoming a network, not a single cluster.
India's electronics ecosystem is geographically distributed.
Different states are developing different strengths based on industrial land, ports, labour, existing clusters, supplier networks and state policy.
Gujarat Semiconductor and packaging activity has become a major part of India's emerging chip-manufacturing map, especially around Sanand.
Uttar Pradesh Noida / Greater Noida has become one of India's important electronics manufacturing clusters, particularly for mobile manufacturing and components.
Tamil Nadu Strong electronics and automotive manufacturing ecosystem with large OEM and supplier networks.
Karnataka Strongest strategic base for semiconductor design, engineering, R&D and deep-tech talent.
Telangana Growing semiconductor design and advanced electronics ambitions around Hyderabad.
Maharashtra Large industrial and automotive ecosystem with potential for electronics, components, design and semiconductor supply-chain participation.
10 · Timeline How the strategy evolved 2012 Electronics Manufacturing Clusters India introduced the EMC framework to create infrastructure capable of attracting electronics manufacturing units and developing clusters.
2021 India Semiconductor Mission The semiconductor mission became the central institutional mechanism for building India's semiconductor and display ecosystem.
2022–24 First major semiconductor project approvals India began moving from policy announcements toward concrete projects across semiconductor manufacturing and packaging.
2025 ECMS enters the component layer The Electronics Component Manufacturing Scheme was notified in April 2025 to deepen the component ecosystem.
2025–26 Execution becomes the main story Pilot lines, packaging facilities, component investments and manufacturing projects increasingly shift the discussion from policy design toward operational execution.
11 · The economics Why India wants the entire stack 1.
Import dependence A final product assembled domestically can still contain large amounts of imported value.
The strategic objective is therefore not merely “Made in India” assembly but increasing domestic value addition.
2.