Pune: Bharat Forge has made a significant move into the semiconductor industry, positioning itself as a key contributor to India’s growing chip manufacturing ecosystem. The company is currently collaborating with three of the world’s five largest semiconductor companies and has already begun securing major orders in the sector.
In an interview with CNBC-TV18, Bharat Forge Chairman & Managing Director Baba Kalyani highlighted the transformation underway in India’s defence sector, stating, “We have seen the biggest reform in the defence sector.” He noted that “defence used to be at the component level earlier and now it’s a platform for us,” and expressed confidence in the industry’s future, expecting “a big surge in the Indian defence sector over the next 5 years.” Emphasising Bharat Forge’s growing global footprint, he added, “Exports form almost 40% of our total defence sales.”
The development comes at a time when India is accelerating efforts to establish a robust domestic semiconductor ecosystem through the India Semiconductor Mission (ISM). Under the programme, the government has attracted investment commitments exceeding ₹1.65 lakh crore across 12 approved semiconductor fabrication, assembly, testing and packaging (ATMP) projects.
Launched with an outlay of ₹76,000 crore, the initiative is now being expanded under ISM 2.0, with a broader focus on semiconductor equipment manufacturing, materials development and indigenous intellectual property creation.
Bharat Forge’s entry into semiconductor manufacturing reflects the growing participation of Indian engineering companies in high-technology sectors traditionally dominated by global players. By producing critical components for lithography equipment, the company is seeking to leverage its advanced manufacturing capabilities while supporting India’s strategic goal of reducing dependence on imported semiconductor technologies.
Apart from semiconductors, Bharat Forge continues to strengthen its position in the defence sector. Kalyani highlighted that reforms in India’s defence industry have transformed opportunities for domestic manufacturers, shifting the focus from component-level participation to complete platform development.
The company expects substantial growth in the defence segment over the next five years, supported by both domestic procurement and export opportunities. Defence exports currently account for nearly 40 per cent of Bharat Forge’s total defence sales, according to the company.
Bharat Forge also recently secured its largest-ever army carbine order, reinforcing its growing presence in the defence manufacturing landscape. The company sees strong demand from both Indian and international markets as a key driver for future expansion.
With strategic investments in semiconductors and defence, Bharat Forge is positioning itself at the forefront of India’s push towards advanced manufacturing, technological self-reliance and global competitiveness.
