The approval comes at a time when semiconductors have become the backbone of the global digital economy, powering critical sectors including smartphones, electric vehicles, medical equipment, satellites and artificial intelligence systems. With worldwide demand for semiconductor chips rising rapidly, India is positioning itself not only as a manufacturing destination but also as a reliable technology partner with strong domestic capabilities and resilient supply chains.
India’s Electronics Manufacturing Growth Creates Strong Foundation
India’s semiconductor ambitions are supported by the rapid expansion of its electronics manufacturing ecosystem over the past decade. Various policy initiatives, including the National Policy on Electronics, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), Electronics Manufacturing Clusters (EMC) 2.0, Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing and Electronics Components Manufacturing Scheme (ECMS), have significantly transformed the country’s Electronics System Design and Manufacturing sector.
Over the last eleven years, electronics production in India has increased seven-fold, electronics exports have grown eleven-fold, mobile phone production has expanded thirty-two-fold and mobile phone exports have increased 165-fold. India has also emerged as the world’s second-largest mobile phone manufacturer, creating a strong industrial base for semiconductor production.
The expansion of electronics manufacturing has generated nearly 25 lakh jobs over the past decade. Women constitute around 30 per cent of the electronics manufacturing workforce, while the mobile manufacturing ecosystem employs nearly 12 lakh people, with women accounting for around 70 per cent of the direct workforce. The sector has emerged as an important contributor to inclusive industrial growth.
Semicon India Programme 1.0 Established the Base
Approved in December 2021 with an outlay of ₹76,000 crore, the Semicon India Programme was launched following global semiconductor supply chain disruptions during the COVID-19 pandemic. Implemented through the India Semiconductor Mission, the programme adopted a mission-driven approach by offering globally competitive incentives, parallel funding support and flexible financial assistance to encourage semiconductor manufacturing in India.
Unlike earlier efforts focused mainly on fabrication, Semicon India Programme 1.0 recognised the importance of developing an entire ecosystem covering chip design, fabrication, packaging, testing, semiconductor equipment, specialty chemicals, industrial gases, logistics and skilled manpower.
Under the first phase, India has approved 12 semiconductor manufacturing projects across Gujarat, Uttar Pradesh, Punjab, Assam, Odisha and Andhra Pradesh. These include one Silicon Fab, one Silicon Carbide Fab, one integrated Gallium Nitride (GaN) Micro LED Display Fab and nine packaging facilities serving industries such as consumer electronics, automobiles, telecommunications, aerospace and industrial electronics.
Three companies — Micron, Kaynes Semicon and CG Power (CG Semi) — have already started commercial production, representing India’s transition from policy planning to operational semiconductor manufacturing. Another facility is expected to begin commercial production during 2026.
The approved projects collectively involve investments exceeding ₹1.64 lakh crore and are expected to establish the foundation of a strong and resilient domestic semiconductor ecosystem.
India Strengthens Global Semiconductor Design Position
Alongside manufacturing expansion, India continues to strengthen its position as a global semiconductor design centre, with nearly 20 per cent of the world’s semiconductor design talent located in the country.
Under the Design Linked Incentive (DLI) Scheme, 24 semiconductor design projects from startups and Micro, Small and Medium Enterprises have received financial support. Additionally, 105 startups and Micro, Small and Medium Enterprises have been provided access to industry-standard Electronic Design Automation tools.
These companies are developing semiconductor chips and Systems-on-Chip for diverse applications, including satellite communications, drones, surveillance systems, Internet of Things devices, LED drivers, artificial intelligence systems, telecom equipment and smart meters. Most projects are currently progressing through various stages of design and development before commercial deployment after successful prototyping.
Students have also designed and fabricated 175 semiconductor chips for applications in automotive technology, healthcare, telecommunications, artificial intelligence and satellite communications.
Talent Development Remains Central to Semiconductor Mission
Recognising the importance of skilled manpower in sustaining semiconductor growth, the government has expanded education and training initiatives through the Chips to Startup programme.
Electronic Design Automation tools have been deployed across 315 universities, enabling around 68,000 students to receive practical training in advanced chip design. A dedicated semiconductor curriculum has also been introduced in more than 500 engineering colleges to create a future-ready workforce.
Under Semicon India Programme 2.0, these efforts will be expanded further by increasing industry participation in specialised training related to clean rooms, fabrication facilities and semiconductor manufacturing ecosystems.
Semicon India Programme 2.0 Expands Semiconductor Value Chain
Building upon the achievements of Semicon India Programme 1.0, the newly approved programme aims to strengthen every stage of the semiconductor value chain instead of focusing only on chip manufacturing.
The programme will operate through six strategic pillars designed to establish a complete and globally competitive semiconductor ecosystem.
The first pillar focuses on semiconductor design by building upon the progress of more than 105 startups already developing semiconductor chips. Under Semicon 2.0, the emphasis will move towards indigenous intellectual property development, advanced chip designs and complete semiconductor systems, helping India emerge as a leading semiconductor design intellectual property nation.
The second pillar aims to promote the development of semiconductor equipment, materials, specialty chemicals and industrial gases. Companies involved in manufacturing and research of critical semiconductor production inputs will receive support to strengthen India’s precision manufacturing capabilities and reduce import dependence.
The third pillar focuses on attracting additional semiconductor fabrication plants. With India’s first silicon fabrication facility scheduled for commissioning in 2028, the government plans to encourage investments in silicon fabs, compound semiconductor fabs, discrete component fabs and display fabrication units.
The fourth pillar aims to expand the Assembly, Testing, Marking and Packaging (ATMP) and Outsourced Semiconductor Assembly and Test (OSAT) sectors. Building on existing ATMP facilities, Semicon 2.0 seeks to attract advanced packaging technologies and establish India as an alternative global destination for semiconductor packaging.
The fifth pillar prioritises semiconductor research and development. India’s current semiconductor journey begins with technology nodes ranging from 28nm to 110nm and aims to progress towards advanced process technologies through partnerships with leading domestic and international research institutions.
The sixth pillar focuses on talent development by expanding semiconductor education, practical training and industry engagement to create a highly skilled workforce capable of supporting future manufacturing and research requirements.
State Support and Global Partnerships Strengthen Semiconductor Ecosystem
India’s semiconductor strategy is being strengthened through cooperation with progressive states and international technology partners.
Several states have introduced dedicated semiconductor policies offering additional incentives to attract investments. At the same time, partnerships with the United States, Japan, Singapore, the Netherlands, Germany and the European Union are supporting technology collaboration, ecosystem development and research initiatives.
Global technology companies, including Applied Materials, AMD, Lam Research, KLA and Microchip Technology, have also announced investments and collaborative programmes in India, strengthening the country’s role in the global semiconductor value chain.
Programme Aims to Drive Technological Self-Reliance
The government has stated that Semicon India Programme 2.0 is expected to accelerate economic growth, strengthen national security through reliable semiconductor supply chains and enhance India’s leadership in critical technologies.
By expanding capabilities in semiconductor design, manufacturing, advanced packaging, research, equipment development and skilled manpower creation, the programme aims to increase domestic value addition, generate high-quality employment opportunities and reduce strategic dependence on global semiconductor supply chains.
As global demand for semiconductor technology continues to rise, Semicon India Programme 2.0 is expected to play a crucial role in establishing India as a trusted destination for semiconductor manufacturing and innovation while supporting the broader vision of a developed India through an integrated, innovation-driven and globally competitive semiconductor ecosystem.
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