India's chip push shifts to production as firms scale up local manufacturing
Industry executives say India's semiconductor drive is moving from project announcements to commercial production, with new products, a Rs 10,000-crore facility and materials manufacturing.
India's semiconductor ambitions are moving beyond project announcements into a commercial production phase, with companies expanding local manufacturing, taking products to market and building domestic supplier networks, industry executives said at SEMICON India 2026.
Speaking at the event, leaders from L&T Semiconductor Technologies, Lam Research and Fujifilm India said the next stage of growth would rest on production, materials, manufacturing capacity and stronger local supply chains.
L&T Semiconductor Technologies CEO Sandeep Kumar said about 40 of the company's products have entered production, following an initial phase centred on product development and customer acquisition. The portfolio includes power modules for air-conditioning systems, two-wheelers, robotics and energy applications, as well as communication modules for two-wheelers, smart meters and point-of-sale systems. The company also has products for four-wheelers.
Further products are in development, including a vision chip, an e-passport security chip and higher-voltage power modules. L&T is also working on an integrated power module for 800-volt hyperscaler applications used in data centres.
Semiconductor equipment maker Lam Research is expanding its manufacturing footprint in India. It announced plans on Wednesday to invest approximately Rs 10,000 crore over the next several years to set up its first silicon component manufacturing facility in the country and broaden its advanced research and development operations.
Rangesh Raghavan, Corporate Vice President and Managing Director of Lam Research India, said the company has conducted R&D in India for 25 years and is now moving into manufacturing, workforce development and local supplier development. The new facility will be a vertically integrated silicon manufacturing unit producing components used inside Lam's semiconductor manufacturing equipment. "The world requires a diversified and reliable supply chain," he said, adding that widening the company's footprint would benefit the wider industry.
Lam is also working with the India Semiconductor Mission and IISc on a programme to train 60,000 engineers in semiconductor manufacturing through its Semiverse digital platform, with 99 universities having signed up so far.
Fujifilm India is expanding into semiconductor materials, another part of the ecosystem needed to support chip manufacturing. Managing Director Koji Wada said the company will initially focus on cleaning materials required for front-end semiconductor manufacturing and plans to work with Indian chemical companies while also manufacturing some specialised chemicals itself.
Wada said physical infrastructure in Gujarat had improved significantly, but flagged customs clearance and smaller regulatory registrations as areas where companies still need government support.
The comments point to a shift in industry focus from semiconductor project announcements and product development towards production, commercialisation and deeper localisation of the manufacturing supply chain.