Summary:
Tata Electronics, L&T, CG Power and HCL Group are stepping up investments across India’s semiconductor value chain. Their projects span chip fabrication, assembly, testing and semiconductor design, supported by government incentives. Rising demand from automobiles, EVs, telecom, defence and AI is strengthening the sector’s growth potential. Successful project execution could help India reduce chip import dependence and build a stronger domestic semiconductor ecosystem.
India’s semiconductor manufacturing ambitions are gaining momentum as leading industrial groups expand investments across chip fabrication, assembly, testing and design capabilities. Tata Electronics, L&T, CG Power and HCL Group have collectively committed large investments to build a domestic semiconductor ecosystem and reduce dependence on imported chips.
The semiconductor sector has become a strategic priority for India due to rising demand from industries such as automobiles, electric vehicles, telecom, defence, artificial intelligence and consumer electronics. The government’s semiconductor mission has further encouraged private sector participation by providing policy support and incentives.
Semiconductor Stocks in India 2026
Tata Electronics Leads India’s Chip Manufacturing Push
Tata Electronics is developing some of India’s largest semiconductor projects. The company is setting up a semiconductor fabrication facility in Dholera, Gujarat, with an estimated project cost of ₹91,000 crore.
The company is also developing an Outsourced Semiconductor Assembly and Test (OSAT) facility in Jagiroad, Assam, with an investment of ₹27,120 crore. The facility is expected to support chip assembly and testing for sectors including automobiles, electric vehicles, telecom and consumer electronics.
Tata Electronics has already committed ₹1,500 crore towards its Dholera project and ₹901 crore towards the Jagiroad facility during FY25 and FY26. These projects are expected to play a key role in building India’s semiconductor supply chain.
CG Power and HCL Expand Semiconductor Footprint
CG Power and Industrial Solutions is developing a semiconductor assembly and testing facility in Sanand, Gujarat, through a partnership with Renesas Electronics and Stars Microelectronics.
The project has an estimated cost of ₹7,600 crore, with CG Power investing ₹820 crore. The facility will focus on producing chips for consumer electronics, industrial applications, automotive systems and power management solutions.
HCL Group is also investing in the semiconductor sector through its project in Jewar, Uttar Pradesh. The company has committed ₹123.75 crore towards the initiative, with the overall project cost estimated at ₹3,700 crore.
The company aims to develop semiconductor capabilities focused on chip packaging and related technologies as India strengthens its position in the global semiconductor value chain.
L&T Builds Semiconductor Design Capability
Larsen & Toubro (L&T) has entered the semiconductor space through L&T Semiconductor Technologies Limited. The company has invested ₹812 crore in its semiconductor business.
Unlike traditional chip manufacturing projects, L&T is focusing on semiconductor design capabilities. The company plans to develop semiconductor solutions and build expertise in chip architecture, design and related technologies.
The company’s semiconductor business is expected to support India’s goal of developing a complete semiconductor ecosystem, covering design, manufacturing and testing.
India’s Semiconductor Opportunity
India currently imports a significant portion of its semiconductor requirements, making domestic manufacturing a strategic priority. Government initiatives aim to develop capabilities across fabrication, packaging, testing, design and semiconductor research.
The demand outlook remains strong as industries increasingly depend on chips for automation, electric mobility, renewable energy systems and digital infrastructure.
Outlook
India’s semiconductor journey is moving from policy ambition towards actual investment and manufacturing capacity creation. With major groups committing billions of rupees across different parts of the chip value chain, the sector could become an important pillar of India’s manufacturing growth story.
The key factors to monitor will be project execution timelines, technology partnerships, production scale and the ability of Indian companies to compete in the global semiconductor market.
