India’s semiconductor strategy is entering a decisive new phase. The focus is no longer limited to attracting fabrication plants but on building a complete ecosystem that spans design, packaging, equipment, materials, and talent, according to a report by The Economic Times.

This comprehensive approach is supported by significant government investment and aligns with the rapid expansion of India’s electronics manufacturing base and global supply chain diversification.

At SEMICON India 2026, Prime Minister Narendra Modi emphasised that the country’s chip story is moving from plans to actual manufacturing.

He urged greater private-sector investment in research and development, highlighting that semiconductors cannot be built around a handful of fabs alone but require the surrounding layers of design, packaging, and specialised equipment to develop simultaneously.

India’s electronics manufacturing transformation provides the foundation for this semiconductor push. Electronics production has risen from ₹1.9 lakh Crore in 2014-15 to ₹13.11 lakh Crore in 2025-26, while exports have surged from ₹38,000 Crore to ₹4.24 lakh Crore.

Mobile phone production grew from ₹18,000 Crore to ₹6.27 lakh Crore, with exports climbing from ₹1,500 Crore to ₹2.59 lakh Crore. Smartphones, once absent from India’s top 100 exports, became the largest individual exported commodity in FY26.

India now produces 99.2% of the mobile phones it consumes, shifting from net importer to net exporter, with the mobile ecosystem supporting 12 lakh jobs and the broader electronics sector employing 25 lakh people.

The first major semiconductor policy push came with the SEMICON India Program, approved with an outlay of ₹76,000 Crore. This was followed by SEMICON 2.0 in July 2026, with an expanded outlay of ₹1,27,500 Crore.

The six pillars of SEMICON 2.0 include chip design, semiconductor equipment and materials, fabrication facilities, advanced packaging, research and development, and talent development. 

Progress has been tangible: 12 projects have been approved across six states, with committed investments exceeding ₹1.64 lakh Crore. Three facilities, including those by Micron, Kaynes, and CG Semi, have already entered commercial production.

The Chips to Start-Up program, launched in 2022, is building a domestic talent pool, targeting 85,000 industry-ready professionals. More than 68,000 students have been trained using Electronic Design Automation tools, which have been distributed across hundreds of institutions. By April 2026, 211 chips had been taped out by 75 institutions, with seven fabricated at nodes including 12 nanometres.

The ChipIN Centre at C-DAC Bangalore provides shared access to design infrastructure, tools, and fabrication support. Around 1 lakh individuals from 400 organisations have used national EDA infrastructure, recording 175 lakh hours of tool usage.

Six shared wafer runs enabled 122 chip submissions, while 56 student-designed chips were fabricated and delivered. More than 75 patents have been filed, and over 500 IP cores, ASICs, and system-on-chip designs are under development.

SEMICON India 2026 showcases this entire journey through its ‘Sand to Silicon to Systems’ Value Chain Experience. More than 600 companies are participating, alongside international leaders, policymakers, investors, researchers, and students.

Country pavilions from Japan, South Korea, Malaysia, the Netherlands, Singapore, and Sweden highlight global collaboration. The conference covers supply chains, chemicals, manufacturing technology, AI, sustainability, and workforce development.

India’s semiconductor push is closely tied to its AI ambitions. The IndiaAI Mission, with an outlay of ₹10,372 Crore, has expanded shared computing capacity to over 45,000 GPUs. By August 2026, 237 projects had accessed subsidised computing, accounting for 93.18 lakh GPU hours. Indigenous foundation models, datasets, and AI Centres of Excellence are being supported, underscoring the strategic importance of chips as infrastructure for next-generation computing.

Global supply chain reorganisation following pandemic disruptions has created opportunities for India. Participation in initiatives such as the Pax Silica coalition strengthens India’s role in critical minerals, semiconductor manufacturing, and AI infrastructure. The long-term goal is not just domestic consumption but integration into the global semiconductor value chain.

Five years after the launch of the SEMICON India Program, India has built an investment pipeline of over ₹1.64 lakh Crore, with commercial production underway and design infrastructure expanding rapidly.

India’s semiconductor strategy will succeed only if fabs, packaging units, design houses, equipment suppliers, material companies, universities, research institutions and electronics manufacturers grow as an interconnected network. That is the real meaning of India building its semiconductor muscle. It is not simply an effort to make chips within the country.

It is an attempt to transform India from an expanding electronics manufacturing base into a durable participant across the global semiconductor value chain, with the capability to design, manufacture, package and deploy the technologies that will shape the next generation of computing and industrial systems.

The ambition has shifted from making chips to building the industrial, technological, and human infrastructure around them, ensuring India becomes a durable global participant in the semiconductor ecosystem.

Agencies