India’s semiconductor manufacturing programme crossed a significant execution milestone on February 28, 2026, when Prime Minister Narendra Modi inaugurated Micron Technology’s Assembly, Testing, Marking and Packaging facility in Sanand, Gujarat — marking the start of commercial production at the country’s first semiconductor chip plant. The inauguration arrived as the broader India Semiconductor Mission pipeline, spanning 10 approved projects with a cumulative investment commitment of ₹1.60 lakh crore, moves from approvals into varying stages of construction and production ramp-up.
Micron’s Sanand Facility: First to Produce Commercially
Prime Minister Modi, speaking at the inauguration, said the start of commercial production at the facility would strengthen India’s role in the global technology value chain. ThePrint Micron Semiconductor Technology India Pvt. Ltd. has invested ₹22,516 crore in the facility. The plant will produce Solid State Drive storage devices, as well as DRAM and NAND memory products, receiving advanced wafers from Micron’s international manufacturing facilities for conversion into finished memory products. World Bank
The Micron ATMP plant is expected to generate nearly 5,000 direct jobs and 15,000 indirect jobs. As of the inauguration date, 2,000 people were employed at the facility. Worldbank The additional hiring up to 5,000 direct employees represents a stated target, not a figure that has been realised.
The Micron ATMP facility was the first project approved by the government in 2022 under the India Semiconductor Mission. As of February 2026, India has approved 10 projects with a cumulative investment of ₹1.60 lakh crore.
Tata Electronics: Fab and Assembly Units Target 2026 Output
Tata Electronics is building two facilities that together constitute the most capital-intensive bet in the ISM portfolio. The Union Cabinet approved Tata Electronics’ proposal to build India’s first large-scale semiconductor fabrication plant in Dholera, Gujarat, in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation. The fab will be built at a total investment of up to ₹91,000 crore and is expected to generate over 20,000 direct and indirect skilled jobs in the region. Business Standard The planned fab will have a total monthly capacity of 50,000 wafers, manufacturing Analog and Logic IC chips across 28nm to 110nm technology nodes. HDFC Mutual Fund
Union Electronics and IT Minister Ashwini Vaishnaw has stated that the first chip from the Dholera unit is targeted for December 2026. That timeline represents the government’s stated target, not a confirmed production date; construction of a first-of-its-kind fab on an accelerated schedule carries inherent execution risk.
In parallel, Tata Semiconductor Assembly and Test Pvt Ltd is setting up a semiconductor unit in Morigaon, Assam — with a capacity to produce 48 million chips per day — at a cost of ₹27,000 crore. Business Today The Assam OSAT plant is projected to be operational by mid-2025, with the expected job creation from the Assam unit standing at approximately 27,000 direct and indirect positions. India Infoline Tata Sons Chairman N. Chandrasekaran, speaking at the March 2024 foundation-laying ceremony, put the combined employment target for both facilities at 50,000 jobs — a figure that covers the full ramp-up horizon across both plants, not near-term hiring.
CG Semi: OSAT Facility on Track for Commercial Production
CG Semi Private Limited — a joint venture between CG Power and Industrial Solutions Ltd. (Murugappa Group), Renesas Electronics Corporation of Japan, and Stars Microelectronics of Thailand — has inaugurated its first OSAT facility in Sanand, Gujarat, backed by an investment of over ₹7,600 crore across two facilities over five years.
The G1 facility, with a peak capacity of approximately 0.5 million units per day, is equipped for end-to-end chip assembly, packaging, testing, and post-test services. CG Semi is on track to commence commercial production in calendar year 2026, as committed to ISM. As of early March 2026, CG Semi’s chairman stated that commercial production is likely to begin within six weeks, according to a Times of India report. The Sunday Guardian
A second facility, G2, is under construction and expected to be completed in 2026, with capacity scaling to approximately 14.5 million units per day and generating over 5,000 jobs across both facilities. Ministry of Statistics and Programme Implementation CG Semi’s chips are targeted primarily at automotive, defence, infrastructure, and IoT applications.
Policy Architecture: ISM 1.0 to ISM 2.0
As of December 2025, 10 projects with a total investment of ₹1.60 lakh crore have been approved across six states under the India Semiconductor Mission. These include silicon fabrication units, silicon carbide fabs, advanced and memory packaging facilities, and specialised assembly and testing infrastructure.
Finance Minister Nirmala Sitharaman, in the Union Budget 2026 speech, announced India Semiconductor Mission 2.0. She stated that ISM 1.0 expanded India’s semiconductor sector capabilities and that ISM 2.0 would focus on producing semiconductor equipment and materials, developing full-stack Indian intellectual property, and strengthening supply chains. A provision of ₹1,000 crore has been made for ISM 2.0 for FY2026-27, with emphasis on industry-led research and training centres.
Electronics and IT Minister Ashwini Vaishnaw has described ISM 2.0 as prioritising indigenous chip design, productisation, attracting ecosystem partners, and developing talent. Press Information Bureau A related measure in the Budget expanded the Electronics Components Manufacturing Scheme — launched in April 2025 with an initial outlay of ₹22,919 crore — raising the allocation to ₹40,000 crore after investment commitments exceeded original targets. Press Information Bureau
Employment: Commitments, Not Yet Realised Numbers
Across the ISM portfolio, the employment projections are significant in aggregate — but they remain forward-looking targets tied to phased construction and ramp-up timelines extending through 2027 and beyond. The four projects approved in August 2025 alone are expected to generate employment for over 2,000 skilled professionals in addition to indirect job opportunities across the electronics manufacturing ecosystem.
The caution warranted here is definitional: job targets cited by companies and governments in project announcements encompass direct and indirect employment, are typically measured at full-ramp capacity rather than at inauguration, and carry the standard risks attendant on any large capital project — supply chain delays, market shifts, and the persistent challenge of sourcing trained semiconductor workforce at scale.
The ISM 2.0 programme, for its part, identifies high-quality employment generation as one of its projected outcomes for FY2026-27, alongside expanding domestic capabilities across fabrication, packaging, and chip design. Whether the sector delivers on the scale of job creation being projected will depend substantially on execution across facilities still under construction — and on India’s ability to develop the specialised workforce that advanced chip manufacturing demands.
