New Delhi: India is moving into a new phase of its semiconductor ambitions as Prime Minister Narendra Modi inaugurated SEMICON India 2026 in New Delhi, highlighting the country’s expanding semiconductor ecosystem and its growing opportunities in manufacturing, research, investment and technology.
The fifth edition of SEMICON India is being held from September 17 to 19 at Yashobhoomi in New Delhi under the theme “Silicon to Systems: Building the Ecosystem.” The event brings together semiconductor companies, investors, policymakers, researchers, startups and academic institutions from India and abroad.
Addressing the event on September 17, Modi said India’s semiconductor ecosystem was expanding rapidly and creating new opportunities for innovation, investment and economic growth. He also called on global semiconductor companies to partner with India in developing a complete ecosystem covering the wider chip value chain.
India Moves From Semiconductor Policy to Production
India’s semiconductor programme has increasingly shifted from policy announcements and investment proposals towards actual commercial production.
The government has approved 12 semiconductor projects under the first phase of the Semicon India Programme. Three of these projects have already entered commercial production, according to the Semiconductor Equipment and Materials International (SEMI) and government information.
The developments represent an important stage in India’s attempt to establish domestic capabilities in semiconductor manufacturing, assembly, testing and packaging.
The government is now looking beyond individual manufacturing projects and focusing on building a broader ecosystem that includes chip design, equipment, materials, research and skilled talent.
Semicon 2.0 Expands India’s Chip Strategy
A major focus of the 2026 event is Semicon 2.0, the next phase of India’s semiconductor programme.
The government approved Semicon 2.0 with an outlay of ₹1,27,500 crore. Unlike the first phase, which concentrated heavily on semiconductor fabs and ATMP/OSAT facilities, the expanded programme covers a much wider part of the semiconductor value chain.
The programme focuses on six broad areas:
- Semiconductor chip design
- Semiconductor machines and materials
- New fabrication facilities
- Advanced packaging and ATMP/OSAT
- Research and development
- Talent and workforce development
The objective is to build capabilities that extend from raw materials and equipment to chip design, manufacturing, packaging and electronics systems.
Global Companies Increasing Their India Presence
SEMICON India 2026 is taking place at a time when semiconductor companies are looking to diversify their manufacturing and supply chains.
More than 600 companies from 52 countries are participating in the event, according to Reuters. The global semiconductor industry is experiencing strong demand linked to artificial intelligence, data centres and advanced computing, while geopolitical tensions are also encouraging companies to consider alternative manufacturing locations.
US semiconductor equipment company Applied Materials announced plans to invest $5 billion in India over the next decade. The investment is expected to focus on research, supply-chain development and workforce expansion.
The announcement highlights the growing importance of India not only as a potential chip manufacturing location but also as a base for semiconductor research, engineering and supply-chain activities.
India’s Semiconductor Market Is Expected to Grow
India’s domestic semiconductor consumption is also expected to expand significantly.
Government estimates cited at SEMICON India indicate that India’s semiconductor consumption could reach approximately $110 billion by 2030, compared with an estimated $45 billion to $50 billion in 2025.
Demand is being driven by the rapid growth of technologies such as artificial intelligence, smartphones, electric vehicles, telecommunications, data centres and connected devices.
Semiconductors are also increasingly important to defence, healthcare, industrial automation and digital infrastructure.
This growing domestic demand provides an additional reason for India to develop local manufacturing and supply-chain capabilities.
From Chips to a Complete Electronics Ecosystem
India’s semiconductor strategy is increasingly moving beyond the goal of producing individual chips.
The government’s broader objective is to create a connected ecosystem covering design, fabrication, packaging, equipment, materials, electronics manufacturing and research.
SEMICON India 2026 has been structured around this wider approach. The exhibition includes areas covering semiconductor design, wafer fabrication, packaging, machines and materials, compound semiconductors, electronics systems, AI, high-performance computing and quantum technologies.
This ecosystem approach is important because semiconductor manufacturing depends on a large network of suppliers, engineering companies, equipment manufacturers, research institutions and skilled workers.
Talent Becomes a Critical Part of India’s Chip Ambitions
Building semiconductor manufacturing capacity requires more than factories and financial investment.
The industry also needs engineers, chip designers, researchers, technicians and specialists in areas such as semiconductor equipment, materials science and advanced packaging.
At SEMICON India 2026, the government has placed particular emphasis on talent development and research. Modi urged young Indian researchers and technology professionals to contribute to the country’s semiconductor development and called on industry leaders to expand research and development activities in India.
The event also includes startup programmes, workforce-development initiatives, student activities and industry-academia collaboration.
India Seeks a Larger Role in Global Chip Supply Chains
The global semiconductor industry remains concentrated in a relatively small number of countries and regions.
India is seeking to position itself as an additional manufacturing and technology hub, particularly as companies attempt to make their supply chains more resilient.
Modi said the global industry is looking for new and trusted manufacturing locations and argued that India is preparing to meet that demand.
India’s advantages include a large domestic market, a substantial engineering workforce, established strengths in chip design and software, and growing government support for semiconductor manufacturing.
However, the country is still building capabilities in areas where established semiconductor hubs have decades of experience.
Challenges Remain for India’s Semiconductor Push
Despite the rapid expansion of India’s semiconductor programme, significant challenges remain.
Large-scale semiconductor fabrication requires enormous capital investment, advanced technology, reliable utilities and highly specialised talent.
India has yet to begin production of chips from a large-scale fabrication facility. Reuters reported that the flagship $10 billion Tata Electronics fabrication project in Gujarat has experienced delays, while commercial production has already begun at three chip-packaging facilities.
The next stage of India’s semiconductor strategy will therefore depend on how successfully approved projects move from construction and development into sustained commercial production.
A New Phase for India’s Chip Industry
SEMICON India 2026 reflects a broader change in India’s semiconductor strategy.
The country’s initial focus was on attracting major investments and establishing fabrication and packaging capacity. The next phase is focused on connecting those investments with domestic design capabilities, research, materials, equipment, talent and electronics manufacturing.
With Semicon 2.0, new global investments and an expanding domestic market, India is attempting to build a semiconductor ecosystem that can participate across multiple stages of the global value chain.
The success of this strategy will ultimately depend on whether planned investments translate into commercially competitive production, deeper local supply chains and sustained innovation.
For now, the expansion of manufacturing projects, global participation and government support signals that semiconductors are becoming a major component of India’s industrial and technology strategy.
