This Company is Training Indian Firms to Build Fabs

India intends to launch its first domestically produced semiconductor chip before 2025 ends. Prime Minister Narendra Modi on August 23, 2025 told the nation about the impending milestone. He highlighted the multiple semiconductor fabrication plants under construction, alongside rapid progress in developing a “Made in India” 6G network.

As reported, electronics and IT secretary S Krishnan confirmed that the central government has committed nearly ₹629 billion (US$7.17 billion)—about 97% of the ₹650 billion (US$7.41 billion) allocated as incentives under the India Semiconductor Mission. 

The remaining funds are sufficient to support only a few smaller projects. The budget includes ₹100 billion (US$1.14 billion) for modernising the Semiconductor Laboratory in Mohali, Punjab, and ₹10 billion (US$114 million) for the design-linked incentive (DLI) scheme.

As of August 2025, 10 projects have received approval across strategic areas, including high-volume fabrication units (fabs), 3D heterogeneous packaging, compound semiconductors like silicon carbide (SiC), and outsourced semiconductor assembly and testing (OSAT) facilities.

Yet, there is a long way to go.

Even though India has significant scope in chip design, it lags in advanced manufacturing nodes (like 7nm, 5nm, 3nm). Global leaders such as TSMC & Samsung dominate this space. Furthermore, fabs require 24/7 power, ultra-pure water, clean rooms, logistics, and supply chain support. India is still developing this ecosystem.

The role of enablers in the ecosystem, therefore, becomes very important.

Mitsubishi Electric’s Experience

Several key players are driving India’s abilities in fabrication, assembly, and advanced chip production. Among them, Mitsubishi Electric India is leveraging its global experience in semiconductor plants, particularly in Taiwan, to assist Indian players in setting up their fabs and OSAT units. 

Its head of business development and strategic planning, Sumit Narayan, told AIM that Mitsubishi Electric has partnered with global semiconductor companies like PSMC and TSMC. That engineering experience helps “understand what kind of products would be more effective when it comes to semiconductor requirements. We have an R&D facility in Pune that learns from Japan and re-engineers products for the Indian market,” he said.

Narayan said that the company primarily focuses on semi-knockdown and assembly facilities across India rather than full-scale manufacturing. 

“For different products, we have plants coming up in Chennai, Talegaon, Pune, and Bangalore,” he said. “Elevators and escalators have semi-knockdown facilities, UPS in Bangalore, and chillers in Bangalore as well. These are engineering products designed with precision to meet utility and industrial requirements.”

The Japanese multinational has been present in India for several years, with operations spanning multiple product lines, including HVAC solutions, elevators and escalators, UPS systems, and industrial automation products.

At Semicon India 2025, Mitsubishi showcased its capabilities as a one-stop solution provider for semiconductor plants.

The company covers approximately 60–70% of mechanical and electrical solutions for a single semiconductor plant, including switchgear for power distribution, UPS systems for continuous power supply, precision air-conditioning using chillers, and automation solutions like robotic arms for handling semiconductor wafers.

Upskilling and Collaborations

Mitsubishi is actively collaborating with Indian semiconductor companies such as Tata Electronics, Kaynes Technology, CG Semi, Micron, and Suchi Semicon. 

While Tata’s Dholera plant is the only chip fabrication facility, others like Suchi Semicon focus on OSAT. 

Narayan explained, “We help them with design discussions, single-line diagrams, electrical ratings, automation requirements, and layout planning. They learn from our experience, and we understand their expectations, which helps in creating a robust plant setup.”

The company also works closely with consultants like Jacob, who have previously helped global semiconductor players set up fabs in Taiwan and the US. This partnership allows Mitsubishi to replicate global best practices in India, ensuring that local fabs meet international standards.

Currently, Mitsubishi Electric employs over 1,000 staff directly in India, with another 3,000 on contract. Their facilities assemble products and also provide engineering support to Indian clients, including layout design, product specification, and optimisation for long-term plant reliability.

Among the other players, L&T Semiconductor Technologies (LTSCT), a fabless startup backed by Larsen & Toubro, plans a $10 billion semiconductor fab by 2027, focusing on MEMS sensors, analog and mixed-signal ICs, RF chips, and smart power devices. 

Tata Electronics, in collaboration with Analog Devices, is investing $14 billion to build India’s first semiconductor fabrication facility in Gujarat and a chip assembly and testing unit in Assam.

‘Cater to the Indian Demand’

Mitsubishi Electric is also investing in the next generation of engineers in India. Through CSR initiatives and partnerships with premier institutes like IIT Delhi and IIT Roorkee, the company provides hands-on exposure to advanced products like robotic arms and automation systems. 

“Engineering students get a real feel of how these products work,” Narayan said. “They understand the technology and the potential career paths available in India’s evolving industrial and semiconductor sectors.”

The company’s immediate focus is on strengthening its presence in India. “Our first step is to cater to Indian demand,” Narayan says. “India is evolving rapidly in segments like semiconductors and solar energy. Once we establish ourselves locally, we can explore extending solutions globally.”

By combining engineering know-how, hands-on support, and knowledge transfer, Mitsubishi Electric is training Indian firms and resources on building and efficient management of semiconductor fabs. 

Narayan revealed that “we are preparing to launch our Compact DIPIPM series at PCIM Shanghai, which will soon be available in India, further strengthening our vision of building a robust and future-ready semiconductor ecosystem in the country.”

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