Bharat Forge has formally entered the billion‑dollar semiconductor industry, marking a significant diversification of its portfolio. Chairman Baba Kalyani revealed in an interview with CNBC‑TV18 that the company is now working with three of the world’s five largest semiconductor firms, with major orders already secured.

This move positions Bharat Forge at the forefront of India’s push to establish a domestic semiconductor ecosystem, a sector critical to both economic resilience and national security.

Kalyani explained that Bharat Forge is engaged in a new semiconductor project, collaborating with several global companies to manufacture parts for lithography machines. These machines are indispensable in chipmaking, as they enable the precise etching of circuits onto silicon wafers.

By entering this highly specialised domain, Bharat Forge is not only expanding its technological footprint but also contributing to India’s ambition of reducing dependence on imported semiconductor equipment.

The timing of this development coincides with India’s accelerated efforts under the India Semiconductor Mission (ISM). The government has already attracted investment commitments exceeding ₹1.65 lakh crore across twelve approved projects in fabrication, assembly, testing and packaging.

Initially launched with an outlay of ₹76,000 crore, ISM is now being expanded under ISM 2.0 to encompass semiconductor equipment, materials and indigenous intellectual property. Bharat Forge’s entry into the sector aligns seamlessly with this national strategy, reinforcing the broader goal of building a self‑reliant semiconductor ecosystem.

On the defence front, Kalyani emphasised that the sector has undergone its biggest reform in decades. He noted that Bharat Forge’s role has evolved from supplying components to delivering complete platforms, reflecting the transformation of India’s defence industry.

He expects a substantial surge in the Indian defence sector over the next five years, driven by modernisation, indigenisation and global demand. This optimism is underpinned by Bharat Forge’s strong export performance, with exports accounting for nearly 40 per cent of its total defence sales.

Kalyani also highlighted the global shifts in defence markets, pointing out that major changes are taking place across India, the United States and Europe. These shifts are creating new opportunities for Indian companies, particularly those capable of delivering advanced platforms and systems.

He stressed the importance of international collaboration, urging Indian firms to forge deeper partnerships with foreign companies to accelerate technological advancement and market access.

Separately, Bharat Forge disclosed that it has secured its largest‑ever order for army carbines, underscoring the company’s growing stature in the defence sector. The firm sees a significant growth runway ahead, supported by robust demand from both domestic and international markets.

This achievement further strengthens Bharat Forge’s position as a key player in India’s defence modernisation drive, while simultaneously expanding its global footprint.

The dual thrust into semiconductors and defence reflects Bharat Forge’s strategic vision of aligning with India’s national priorities. By entering the semiconductor industry, the company is contributing to a sector that underpins everything from consumer electronics to defence systems.

By expanding its defence exports and securing landmark orders, it is reinforcing India’s emergence as a global defence manufacturing hub. Together, these initiatives highlight Bharat Forge’s role in shaping India’s industrial and technological future.

Agencies