India is steadily advancing towards its goal of becoming a global semiconductor hub, with EPC (Engineering, Procurement, and Construction) firms playing a crucial role in the transformation. At the Semicon India event, Prime Minister Narendra Modi emphasized India’s growing importance in the global semiconductor market and its potential to lead in chip production. The government’s India Semiconductor Mission (ISM), launched in 2021 with a Rs 76,000 crore investment, is a key initiative driving this ambition. With global demand for semiconductors on the rise, India’s semiconductor ecosystem is rapidly expanding to meet both domestic and international needs.
A number of high-profile semiconductor projects are already underway, with EPC firms at the forefront of their development. For example, Tata Projects is collaborating with US-based Micron to build a semiconductor assembly and packaging plant in Gujarat. Additionally, Tata Group is partnering with Taiwan’s Powerchip to set up a wafer fab in Dholera, marking India’s first commercial semiconductor fab. Other significant ventures include Tata Electronics’ semiconductor packaging plant in Assam, which aims to produce 48 million chips per day, supporting industries such as automotive and telecom. These projects are expected to create thousands of jobs and significantly bolster India’s semiconductor capabilities.
However, the rapid growth of India’s semiconductor industry presents several challenges for EPC companies. These include long lead times for critical components, a reliance on international suppliers, and the need to train local talent for highly specialized tasks. Furthermore, EPC firms must address sustainability concerns, such as water and energy consumption, and ensure the safe handling of hazardous materials. As India moves forward, the technical expertise and innovation of EPC firms will be instrumental in realizing the country’s vision of becoming a global leader in semiconductor manufacturing.
