Friday 09 / October / 2026
New Delhi: India’s semiconductor industry is moving from policy announcements towards manufacturing, investment and ecosystem development. The shift was evident at SEMICON India 2026 in New Delhi, where US semiconductor equipment major Applied Materials announced plans to invest $5 billion in India over the next decade.
Held from September 17 to 19, the event attracted more than 600 companies and representatives from 52 countries, reflecting growing international interest in India’s ambitions to become a semiconductor manufacturing hub.
From Policy to Production
The Semicon India Programme, approved with an outlay of $8.09 billion (₹76,000 crore), laid the foundation for domestic capabilities spanning chip design, fabrication, assembly, testing and packaging.
By July 2026, 12 semiconductor projects had been approved, representing investments exceeding $17.45 billion (₹1.64 lakh crore). Three facilities operated by Micron, Kaynes Semicon and CG Semi had entered commercial production.
Micron CEO Sanjay Mehrotra confirmed that commercial DRAM and NAND production was underway at the company’s Sanand facility in Gujarat, marking progress from investment commitments to manufacturing output.
Semicon 2.0 Broadens the Vision
Approved in July 2026 with an outlay of $13.56 billion (₹1,27,500 crore), Semicon 2.0 expands support across six areas: chip design, semiconductor equipment and materials, fabrication, advanced packaging, research and development, and talent development.
The programme aims to strengthen the industrial ecosystem surrounding semiconductor manufacturing, including specialised chips, power electronics, sensors and advanced packaging.
Global partnerships are contributing to this effort. Tata Electronics announced collaborations covering manufacturing, packaging, materials and workforce development, including an agreement with Nexperia. Plans for a vendor park in Dholera, Gujarat, are intended to strengthen the supply chain around Tata’s fabrication project.
Connecting Design with Manufacturing
India’s established semiconductor design capabilities are increasingly being linked to commercial applications. Under the first phase, 24 design projects from startups and MSMEs received financial support, while 105 startups and MSMEs gained access to electronic design automation tools.
At SEMICON India, the government highlighted an indigenous System-on-Module developed by IndieSemiC using C-DAC’s Vega-Thejas32 processor and a certified LoRa-RF module. Meanwhile, students from Tier-II and Tier-III cities have designed more than 250 semiconductor chips, according to government figures.
Talent and Market Demand
India has achieved its target of developing 85,000 semiconductor engineers within four years, Electronics and IT Minister Ashwini Vaishnaw said in August. The government aims to develop another 100,000 engineers and train 100,000 technicians under the expanded programme.
The market opportunity is substantial. India’s semiconductor demand was estimated at $45 billion–$50 billion in 2025 and is projected to reach $110 billion by 2030 and exceed $200 billion by 2035.
Electronics production has also increased from approximately $20.21 billion in 2014–15 to $127.66 billion in 2024–25, while exports rose from $4.04 billion to $35.11 billion.
India’s semiconductor strategy is therefore evolving beyond making individual chips. By connecting design, manufacturing, packaging, materials, skills and research, the country is seeking to build an integrated industry capable of serving domestic demand and participating more deeply in global supply chains.
