There's a similarly sized Packaging plant opening in Assam in Northeast India, and India is working with Tower Semiconductors to restart the SCL Fab in Chandigarh, which back in the 1980s used to sell Intel knockoffs to the Soviet and Indian defense industries before it was burned down during the Khalistan insurgency.
It doesn't hurt that the ministers leading India's semiconductor strategy was part of the team that designed and fabricated the Intel i486 in the 1980s-90s [0] and managed GE Transportation and Siemens Transportation in India [1]
At least India already has a very strong Hardware and Chip Design base, as most companies do Semiconductor Design in India already, and have been since TI opened their office in Bangalore in the early 1980s, and most EDA software is coded in the India offices of Synopsys, Cadence, Ansys, Siemens, etc.
Edit:
Cool article from the early 1980s about India's initial attempt at chip fabrication - https://www.indiatoday.in/magazine/economy/story/19831015-se...
Most Indian and Indian American leadership and middle management in the Electronics and Chips industry are alumni of SCL Mohali.