As of March 2026, India’s technological landscape is witnessing a seismic shift. The government’s massive Rs 1 lakh crore (Rs 1 trillion) infusion into the semiconductor ecosystem, announced in the latest Union Budget, has set the stage for a domestic revolution. With the “India Semiconductor Mission 2.0” (ISM 2.0) now in full throttle, the country is no longer just a consumer of silicon; it is rapidly becoming a global production hub.
While the world looks to giants like Nvidia, three Indian companies have emerged as frontrunners, building the infrastructure, design capabilities, and testing facilities required to power the next generation of AI, EVs, and telecommunications.
1. CG Power and Industrial Solutions: The OSAT Pioneer
CG Power, a subsidiary of the Murugappa Group, has transformed from an industrial equipment giant into a cornerstone of India’s chip strategy. Through its subsidiary, CG Semi, the company is spearheading the country’s first large-scale Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat.
- Strategic Moat: In partnership with Renesas Electronics (Japan) and Stars Microelectronics (Thailand), CG Power is filling a critical gap in the value chain. By March 2026, the facility has moved into commercial production, handling a capacity of nearly 15 million chips per day.
- Financial Growth: The company reported a significant jump in consolidated net sales for Q3 FY26, reaching Rs 3,175.4 crore. Beyond semiconductors, its entry into the global data center segment with a landmark Rs 900 crore export order for power transformers highlights its role in the broader AI infrastructure play.
2. Kaynes Technology India: The Electronics Powerhouse
Kaynes Technology has rapidly evolved from an Electronic Manufacturing Services (EMS) provider to a high-tech semiconductor player. Its subsidiary, Kaynes Semicon, is investing over Rs 3,300 crore in a state-of-the-art OSAT and advanced packaging unit.
- The Chip Catalyst: The Sanand-based unit is designed to serve a diverse range of sectors, including automotive, healthcare, and industrial IoT. By partnering with global leaders like AOI Electronics and Mitsui & Co. from Japan, Kaynes is leveraging international expertise to ensure its “Made in India” chips meet global standards.
- Performance Metrics: For Q2 FY26, Kaynes reported a staggering revenue growth, with net sales hitting Rs 906.2 crore—a massive increase from the previous year. Its net profits more than doubled, reflecting the high margins associated with semiconductor-related hardware and IoT solutions.
3. Tata Electronics (TEPL): The Fabrication Giant
No discussion about the “Indian Nvidias” is complete without the Tata Group. Tata Electronics is building India’s first AI-enabled semiconductor fabrication plant (Fab) in Dholera, Gujarat, with a staggering investment of nearly Rs 91,000 crore.
- Vertical Integration: Unlike firms focused solely on testing, Tata Electronics is aiming for full-scale wafer fabrication in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC). This facility is expected to produce 50,000 wafers per month, targeting the 28nm and 40nm nodes which power everything from consumer electronics to defense systems.
- Ecosystem Impact: With a separate chip assembly and test unit in Assam already entering pilot production in mid-2026, the Tata Group is creating a vertically integrated ecosystem that mirrors the self-reliance strategies of global tech titans.
The Rs 1 Lakh Crore Opportunity
The launch of the Rs 1 trillion fund is a game-changer. Unlike previous schemes, this fund provides direct subsidies for chip design, manufacturing equipment, and supply chain development. By 2029, India aims to design and manufacture chips for 75% of its domestic applications, reducing its multi-billion dollar import dependency. For investors, these three stocks represent the bedrock of a “Viksit Bharat” (Developed India) where silicon is the new oil.
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