State-wise Analysis of India’s Semiconductor Industry

India’s electronics and semiconductor manufacturing sector is experiencing significant growth, with an anticipated output of $300 billion by 2025.

This is remarkable! However, what is even more fascinating is the distribution of this growth across India’s 28 states and 8 Union Territories (UTs).

Certain states are at the forefront of this development, while others are still in the process of catching up.

Let us analyze the reasons behind this trend and its implications for the future of electronic manufacturing in India.

Number of electronics and semiconductor manufacturing units in India

Rank	State/Union Territory	Number of Electronics Manufacturing Units (est, 2025)
1	Tamil Nadu	60
2	Karnataka	50
3	Uttar Pradesh	40
4	Gujarat	30
5	Maharashtra	25
6	Andhra Pradesh	20
7	Haryana	15
7	Telangana	15
9	Delhi	5
9	Kerala	5
9	Uttarakhand	5
12	Himachal Pradesh	3
12	Punjab	3
12	West Bengal	3
15	Assam	2
15	Dadra and Nagar Haveli and Daman and Diu (DNHDD)	2
15	Madhya Pradesh	2
15	Puducherry	2
15	Rajasthan	2
20	Chandigarh	1
20	Goa	1
20	Odisha	1
23	Andaman and Nicobar Islands	0
23	Arunachal Pradesh	0
23	Bihar	0
23	Chhattisgarh	0
23	Jammu and Kashmir	0
23	Jharkhand	0
23	Ladakh	0
23	Lakshadweep	0
23	Manipur	0
23	Meghalaya	0
23	Mizoram	0
23	Nagaland	0
23	Sikkim	0
23	Tripura	0

By 2025, India will host 271 electronics manufacturing facilities, which include electronic manufacturing services (EMS) firms and semiconductor plants.

These facilities are responsible for producing a wide range of products, from smartphones to circuit boards and advanced chips.

However, their distribution is not uniform. Some states boast numerous factories, while others have none at all.

What accounts for this disparity?

The answer lies in factors such as infrastructure, government policies, and the presence of major semiconductor manufacturing companies in India establishing operations in specific regions.

Estimated Output Value of electronics and semiconductor manufacturing units of India

Rank	State/Union Territory	Estimated Output Value (Billion USD)
1	Tamil Nadu	90
2	Karnataka	75
3	Uttar Pradesh	60
4	Gujarat	45
5	Maharashtra	38
6	Andhra Pradesh	30
7	Haryana	22
7	Telangana	22
9	Delhi	7
9	Kerala	7
9	Uttarakhand	7
12	Himachal Pradesh	4
12	Punjab	4
12	West Bengal	4
15	Assam	3
15	Dadra and Nagar Haveli and Daman and Diu (DNHDD)	3
15	Madhya Pradesh	3
15	Puducherry	3
15	Rajasthan	3
20	Chandigarh	1
20	Goa	1
20	Odisha	1
23	Andaman and Nicobar Islands	0
23	Arunachal Pradesh	0
23	Bihar	0
23	Chhattisgarh	0
23	Jammu and Kashmir	0
23	Jharkhand	0
23	Ladakh	0
23	Lakshadweep	0
23	Manipur	0
23	Meghalaya	0
23	Mizoram	0
23	Nagaland	0
23	Sikkim	0
23	Tripura	0

Percentage share of every Indian State in number of Manufacturing Units

Rank	State/Union Territory	Percentage Share (%)
1	Tamil Nadu	22.14
2	Karnataka	18.45
3	Uttar Pradesh	14.76
4	Gujarat	11.07
5	Maharashtra	9.23
6	Andhra Pradesh	7.38
7	Haryana	5.54
7	Telangana	5.54
9	Delhi	1.85
9	Kerala	1.85
9	Uttarakhand	1.85
12	Himachal Pradesh	1.11
12	Punjab	1.11
12	West Bengal	1.11
15	Assam	0.74
15	Dadra and Nagar Haveli and Daman and Diu (DNHDD)	0.74
15	Madhya Pradesh	0.74
15	Puducherry	0.74
15	Rajasthan	0.74
20	Chandigarh	0.37
20	Goa	0.37
20	Odisha	0.37
23	Andaman and Nicobar Islands	0.00
23	Arunachal Pradesh	0.00
23	Bihar	0.00
23	Chhattisgarh	0.00
23	Jammu and Kashmir	0.00
23	Jharkhand	0.00
23	Ladakh	0.00
23	Lakshadweep	0.00
23	Manipur	0.00
23	Meghalaya	0.00
23	Mizoram	0.00
23	Nagaland	0.00
23	Sikkim	0.00
23	Tripura	0.00

Why Certain States have more manufacturing units?

Tamil Nadu, Karnataka, and Uttar Pradesh are the key players, collectively responsible for more than half of India’s electronics production ($225 billion out of $300 billion).

Tamil Nadu stands out with a contribution of $90 billion, attributed to its extensive manufacturing centers in Chennai and Sriperumbudur.

Major companies such as Samsung and Foxconn have established large facilities here, producing a range of products from televisions to iPhones.

Karnataka follows with $75 billion, particularly in Bengaluru, where technology leaders like Wistron assemble Apple devices.

Uttar Pradesh, contributing $60 billion, is rapidly advancing, fueled by the expanding electronics hub in Noida and brands like Lava.

What factors contribute to the success of these states?

Primarily, they possess essential infrastructure: reliable roads, ports, and power supply.

Tamil Nadu and Karnataka have long been recognized as technology centers, boasting a skilled workforce and numerous engineering institutions in the vicinity.

Conversely, Uttar Pradesh has made significant strides by offering substantial government incentives, including tax reductions and land agreements, to attract businesses.

The Production-Linked Incentive (PLI) scheme, a governmental initiative aimed at enhancing manufacturing, has invested billions in these states, fostering the growth of the electronics and semiconductor manufacturing sectors in India.

Additionally, Gujarat ($45 billion) and Maharashtra ($38 billion) are establishing a foothold in the semiconductor industry.

Gujarat’s Sanand hosts Micron’s $2.75 billion chip manufacturing facility, while Maharashtra is home to RRP Electronics’ new semiconductor plant.

These states enjoy advantages due to their closeness to ports and favorable business regulations.

The India Semiconductor Mission plays a significant role in the expansion of semiconductor manufacturing in these regions, with the government subsidizing up to 50% of the costs associated with semiconductor manufacturing plants in India (which can amount to billions!).

Why Certain States Are Falling Behind

Now, let us examine the 14 states and Union Territories (UTs) that have no electronic manufacturing units, such as Arunachal Pradesh, Bihar, and Lakshadweep.

What accounts for their absence of electronic manufacturing companies in India?

It is not due to a lack of effort on their part. These regions frequently suffer from inadequate infrastructure – consider the necessity for dependable electricity, well-maintained roads, or accessible ports – that large factories require.

Additionally, many of these areas are situated far from significant markets or pools of technological talent.

For instance, the Northeastern states, including Manipur and Mizoram, contend with challenging hilly landscapes and limited connectivity, which complicates the establishment of large-scale manufacturing facilities.

Lakshadweep, being a small island UT, simply lacks the necessary space and population to sustain manufacturing.

However, the situation is not entirely bleak.

Some of these regions are beginning to make progress. Assam, for example, boasts two units, one of which is a new Tata semiconductor facility located in Morigaon.

This indicates that with appropriate investment, even less industrialized states can become competitive.

The Influence of Government and Global Developments

The government’s initiatives, such as the Production-Linked Incentive (PLI) scheme and Electronics Manufacturing Clusters (EMCs), are transformative.

These initiatives provide financial incentives and ready-to-use industrial parks, facilitating the establishment of electronic manufacturing services (EMS) companies.

States like Andhra Pradesh and Telangana are reaping the benefits, with 20 and 15 units, respectively, as they have created a welcoming environment for investors.

Global trends are also playing a significant role. As companies like Apple and Samsung relocate their production from China, India is emerging as a preferred destination for the electronics industry.

This transition is the reason states like Tamil Nadu and Karnataka are experiencing substantial growth – they are already equipped to manage large orders from international brands.

Why Certain States Are Falling Behind

Now, let us examine the 14 states and Union Territories (UTs) that have no electronic manufacturing units, such as Arunachal Pradesh, Bihar, and Lakshadweep.

What accounts for their absence of electronic manufacturing companies in India?

It is not due to a lack of effort on their part.

These regions frequently suffer from inadequate infrastructure—consider the necessity for dependable electricity, well-maintained roads, or accessible ports—that large factories require.

Additionally, many of these areas are situated far from significant markets or pools of technological talent.

For instance, the Northeastern states, including Manipur and Mizoram, contend with challenging hilly landscapes and limited connectivity, which complicates the establishment of large-scale manufacturing facilities.

Lakshadweep, being a small island UT, simply lacks the necessary space and population to sustain manufacturing.

However, the situation is not entirely bleak. Some of these regions are beginning to make progress.

Assam, for example, boasts two units, one of which is a new Tata semiconductor facility located in Morigaon.

This indicates that with appropriate investment, even less industrialized states can become competitive.

The Influence of Government and Global Developments

The government’s initiatives, such as the Production-Linked Incentive (PLI) scheme and Electronics Manufacturing Clusters (EMCs), are transformative.

These initiatives provide financial incentives and ready-to-use industrial parks, facilitating the establishment of electronic manufacturing services (EMS) companies.

States like Andhra Pradesh and Telangana are reaping the benefits, with 20 and 15 units, respectively, as they have created a welcoming environment for investors.

Global trends are also playing a significant role. As companies like Apple and Samsung relocate their production from China, India is emerging as a preferred destination for the electronics industry.

This transition is the reason states like Tamil Nadu and Karnataka are experiencing substantial growth – they are already equipped to manage large orders from international brands.

Source

• Invest India. (n.d.). Electronics manufacturing in India. Retrieved August 30, 2025, from https://www.investindia.gov.in/sector/electronics-manufacturing
• Ministry of Electronics and Information Technology. (2023). India Semiconductor Mission. Government of India. Retrieved August 30, 2025, from https://www.meity.gov.in/semiconductors
• PricewaterhouseCoopers. (2024). India’s electronics manufacturing: Opportunities and challenges. Retrieved August 30, 2025, from https://www.pwc.in/industries/electronics