After 2022, Russia faced a severe dependence on parallel imports of electronics and components. The two main sources are China and gray chains through third countries. India has so far been virtually absent from this picture as a producer. Investments of $35 billion are starting to change that.
What is being built
The first plant is a joint project of Tata Electronics and Taiwan's PSMC. The site is in the state of Gujarat. Power is the production of chips using the 28-40 nm process technology, these are mature processes in demand in industrial electronics, automotive, and household appliances.
The second plant is Tata Electronics in cooperation with another partner. The third major project is Micron Technology, which has launched the production of chip packaging and testing in Gujarat.
28-40 nm chips are not the cutting edge, but they are used in most industrial applications. For Russian companies looking for components for industrial equipment, car electronics and household devices, this is a potentially working source.
Horizon and risks
The first chips produced in India will appear in commercial volumes no earlier than 2027-2028. Semiconductor manufacturing is a complex process that requires 18-24 months to fine—tune the equipment after launch. The first batches will be small and expensive.
Political risk: The United States may extend export restrictions that already restrict the supply of advanced technologies to China to India if New Delhi starts actively trading chips with Russia. India is balancing between Western partners and its own trade interests.
For Russian companies
In the short term, no changes. Parallel imports from China and gray chains remain the main source of components. Potential diversification is on the horizon for 3-5 years: Indian chips for industrial electronics as a legal alternative to their Chinese counterparts. To monitor how India's export policy will be built as production starts up.
