Indian company Spintronics AI Semiconductors is studying an investment of around ₹2,800 crore (roughly ₹28 billion), about €265 million at current exchange rates, in a gallium nitride (GaN) chip plant in Ujjain, in the state of Madhya Pradesh. The project is still at the feasibility stage: the company presents the figure as a preliminary roadmap, not a firm commitment, and the first phase would be up to ₹800 crore, about €75 million.
Spintronics AI’s GaN chip plant in India in 20 seconds
- Spintronics AI is evaluating a GaN chip plant in Vikram Udyogapuri, Ujjain.
- Total investment would be around €265 million, with the first phase at about €75 million.
- It could create up to 1,000 direct jobs and about 2,800 indirect ones.
- There is no final decision or timeline yet.
Spintronics AI, headquartered in Hyderabad, designs and engineers GaN, radio-frequency and power semiconductor products. According to Semiconductor for You and The Machine Maker, the company’s team visited the Vikram Udyogapuri industrial park at the invitation of the Madhya Pradesh government to assess its suitability.
A phased project, still without a final decision
The proposed site covers roughly 40 acres (about 16 hectares), of which around 24 acres (close to 10 hectares) would go to the first phase, with the rest earmarked for future expansion. The company is reviewing air and water quality, power supply, cleanroom requirements, logistics and waste management — all critical factors for a semiconductor plant.
Later phases will depend on technology maturity, demand, infrastructure and commercial conditions, and the final investment decision and its timeline are subject to approvals and incentives. The published reports do not detail wafer size, production capacity or the products that would be manufactured. Founder and CEO Raghu Varma stresses that each stage must be justified with a solid technical and environmental assessment.
In parallel, the Madhya Pradesh government, following talks with Chief Minister Mohan Yadav, has issued a letter of intent to support the company’s R&D, design and product engineering activities in the state. Spintronics AI is also exploring GaN technology development with the public institute CSIR-CEERI in Pilani.
Why GaN, and why India
Gallium nitride is a wide-bandgap semiconductor that handles higher voltages and frequencies than silicon with lower losses. It is used in fast chargers, power supplies for servers and data centers, power electronics for electric vehicles, and radio-frequency amplifiers for telecommunications and defense. Unlike the most advanced logic chips, a GaN plant does not require leading-edge lithography, which makes it more accessible for countries that are just starting to build their chip industry.
The project fits into India’s strategy to attract chip manufacturing, which cloudnews.tech has followed closely as the country’s tally of plants has grown. The euro conversion is approximate, calculated at roughly 106 rupees per euro; the rupee figure is the reference one.
Frequently asked questions
How much would Spintronics AI invest in the GaN plant?
About ₹2,800 crore in total, around €265 million, with a first phase of up to ₹800 crore, about €75 million.
Where would the plant be built?
At the Vikram Udyogapuri industrial park in Ujjain, in the Indian state of Madhya Pradesh.
Has the investment been approved?
No. The project is still at the feasibility stage, and the company presents the figure as a preliminary roadmap, with no final decision or timeline.
What are GaN chips used for?
In fast chargers, power supplies for data centers, power electronics for electric vehicles, and radio-frequency applications.
Sources:
- ET Electronics: Spintronics AI mulls ₹2,800 crore investment for GaN chip fab in Madhya Pradesh
- Semiconductor for You: Spintronics AI evaluates potential site for proposed GaN semiconductor fabrication facility
- The Machine Maker: Spintronics AI evaluates Ujjain site for proposed ₹2,800 crore GaN semiconductor facility
