India Expands Semiconductor Ecosystem with New Partnerships, Plant Inauguration

L&T Semiconductor Technologies Limited (LTSCT) and Tata Electronics announced a strategic partnership to expand indigenous production of semiconductor chips for global markets.

The joint venture aims to build domestic design and manufacturing capabilities for automotive, industrial, communications, security, and intelligent-edge sectors. The collaboration combines LTSCT's fabless chip design innovation with Tata Electronics' semiconductor packaging and foundry capabilities. Prime Minister Narendra Modi virtually inaugurated commercial production at Suchi Semicon’s advanced Semiconductor Assembly and Testing (OSAT) plant in Palsana, Surat, on September 17, 2026.

The plant was established with an investment of approximately ₹868 crore. The semiconductor project was approved by the Union Cabinet in May 2026 under the India Semiconductor Mission. Modi hailed India’s progress in semiconductors and stated the country entered the second phase of its semiconductor journey at the inauguration of SEMICON India 2026. He added that the semiconductor ecosystem is expanding rapidly, opening new opportunities for innovation and investment.

Five semiconductor units are now under production in India, and ISM 2.0 aims to build a full ecosystem. India and the Netherlands strengthened their strategic partnership in semiconductor and high-tech manufacturing sectors at SEMICON India 2026. ASML sees scope to build India’s semiconductor supplier base. Shares of Kaynes Technology India, Syrma SGS Technology, and MosChip Technologies gained up to 10% as investor attention turned to India’s semiconductor ecosystem.