India is well placed to emerge as a key player in the global semiconductor industry, but companies must align investments with market demand, commercial viability and execution capabilities, Tata Sons Chairman N Chandrasekaran said on Tuesday.
Speaking at the 2026 Bloomberg New Economy Forum, Chandrasekaran said semiconductors would be fundamental to India's industrial and technological future, given the country's talent pool, expanding domestic market and potential to participate in global supply chains. However, he cautioned against making large investments in advanced chip manufacturing without adequately assessing demand.
“We are in a beautiful spot in India, because we have the talent, we have the domestic market, we can play a part in every global supply chain,” he said.
Demand, financial viability key to semiconductor push
Chandrasekaran stressed that India's semiconductor ambitions must be backed by commercially sustainable investments rather than an indiscriminate push towards the most advanced manufacturing technologies.
“You cannot be reckless and say that I am going to be putting a two-nanometre chip plant. It's just not going to work. So, we need to also see where the demand is,” he said.
He said financial viability remained important for businesses, consumers and the country, with investment decisions needing to deliver sustainable employment over the long term. While uncertainties remained around the pace of capacity expansion and the choice of technology, he said several fundamentals, including energy availability and execution, could be assessed.
Tata Group commits ₹1.18 lakh crore to semiconductor projects
Tata Group is building semiconductor manufacturing capabilities through two major projects. Tata Electronics is setting up a semiconductor fabrication plant at Dholera in Gujarat in partnership with Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC), involving an investment of around ₹91,000 crore.
The proposed facility is intended to manufacture chips for automobiles, mobile devices, consumer electronics, artificial intelligence and industrial applications. The project is also supported by a technology partnership with Dutch equipment maker ASML.
Separately, Tata Electronics is developing a semiconductor assembly and testing facility at Jagiroad in Assam, with an investment of around ₹27,000 crore. The facility is expected to have the capacity to process up to 48 million chips a day, catering to sectors including automobiles, telecommunications, consumer electronics and AI-driven devices.
Together, the two projects represent investments of approximately ₹1.18 lakh crore, reflecting the group's strategy to expand its presence in advanced manufacturing and strengthen India's electronics supply chain.
Partnerships critical to building chip ecosystem
Chandrasekaran said partnerships with global companies would be essential for accessing technologies and developing domestic semiconductor capabilities.
“We need partnerships, because we have all the technologies... But if you design it, definitely we will get there,” he said, while flagging energy requirements as another consideration.
His remarks underline the challenge facing India's semiconductor ambitions: building manufacturing capacity that meets domestic requirements, remains economically viable and enables the country to participate more deeply in global supply chains.