India is accelerating its bid to build a broader semiconductor and electronics ecosystem, combining new packaging capacity, longer-term tax incentives and deeper localization with efforts to expand its chip workforce and sovereign AI capabilities. Investments by ASIP, Dixon, Rashi and global technology partners highlight a strategy increasingly focused on higher-value manufacturing.
India's ASIP Technologies makes FCBGA core of OSAT plan
ASIP Technologies plans to begin volume production at its Visakhapatnam semiconductor packaging plant in India by the end of 2027, initially focusing on FCBGA packages for networking, communications and computing chips. South Korean OSAT partner APACT will support equipment setup, process qualification and workforce training. The facility is expected to reach an annual capacity of 96 million chips within one to two years. ASIP also plans to add 2.5D and 3D packaging and gradually localize substrates and other materials.
India proposes extension for electronics manufacturing tax breaks and loosening data center rules in new bill
India's Taxation and Other Laws (Amendment) Bill, 2026, gives foreign suppliers to the country's electronics contract manufacturers a decade of extra tax certainty and removes some of the approval hurdles that had constrained foreign cloud and data-center operators, according to the bill text introduced in the Lok Sabha (the Lower House of India) on July 31, 2026, by Finance Minister Nirmala Sitharaman.
Rising component costs, new Indian incentives, and export push shape Dixon's outlook
Dixon Technologies said rising component prices pressured margins in the first quarter of fiscal 2027. Still, strong order inflows, a shift toward higher-value manufacturing, and new policy support could help offset the hit. The company sees mobile volumes improving, exports rising, and component localization deepening across its expanding portfolio.
Rashi Peripherals partners with Japan's Restar to build out India semiconductor business
Rashi Peripherals, a national distribution partner for global technology brands in India, has entered a joint venture with Japanese electronics and technology company Restar Corporation. The move pushes the distributor beyond product distribution into engineering, design, and field application support for India's manufacturing sector.
Apple's India breakthrough highlights a market betting on premium over volume
Apple's India business crossing US$10 billion in annual sales for the first time is less a story about smartphone growth than about where growth is still possible in a market that, by unit count, is shrinking.
India expands chip talent pipeline amid surging global chip demand
India has stepped up efforts to build a larger semiconductor workforce through training, curriculum reform, and industry partnerships. The plan matters beyond India because chip supply chains are global, and shortages in skilled engineers, fab workers, and packaging specialists can slow production, innovation, and investment worldwide.
IBM and Sarvam team up on India's sovereign AI push
IBM and Sarvam have announced a collaboration to advance sovereign AI technologies in India, a move that could influence how governments and regulated industries worldwide deploy trusted artificial intelligence. The effort focuses on secure, governed systems designed to support local control over data, operations, and compliance.
Article edited by Jerry Chen