Key facts
- India has doubled its public investment over the last five years.
- The increased spending targets infrastructure like highways and high-speed rail.
- India is actively developing its semiconductor manufacturing ecosystem with multiple projects.
- A new ATMP/OSAT facility opened in Rajasthan on May 15, 2026.
- Tata Electronics and ASML are partnering to build India's first front-end semiconductor fabrication plant in Gujarat.
- The Gujarat plant represents an estimated $11 billion investment.
India is significantly increasing its public investment, doubling it over the past five years, to drive economic growth through infrastructure development and the expansion of its semiconductor manufacturing capabilities. The nation's economy achieved a robust 7.7% growth in fiscal 2025, fueled by this increased spending on highways, high-speed rail, and crucial chip plants, alongside personal consumption.
As of May 18, 2026, India's semiconductor ecosystem includes 13 approved projects. A notable development is the inauguration of an ATMP/OSAT facility in Bhiwadi, Rajasthan, on May 15, 2026, operating under the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS). This facility marks the first semiconductor unit established outside the India Semiconductor Mission (ISM).
Further strengthening its position in global semiconductor supply chains, Tata Electronics and Dutch firm ASML signed an agreement on May 16, 2026, to establish India's first front-end semiconductor fabrication plant in Gujarat. ASML will supply advanced technology and equipment for Tata Electronics' planned 300-mm wafer fabrication plant in Dholera, Gujarat. This facility, with an estimated investment of $11 billion, is intended to produce semiconductor chips for sectors including automotive electronics, mobile devices, industrial applications, and artificial intelligence.
ASML CEO Christophe Fouquet highlighted the substantial long-term opportunities within India's expanding semiconductor sector and expressed the company's intent to deepen its regional partnerships. The collaboration between Tata and ASML aligns with India's broader semiconductor policy objectives and reflects global trends in supply chain diversification amid evolving trade restrictions.