India is moving beyond electronics assembly and manufacturing to build a broader domestic semiconductor ecosystem covering chip design, fabrication, advanced packaging, manufacturing equipment, specialised materials, research and skilled talent. The government says the strategy is aimed at establishing India as a significant global hub for semiconductor manufacturing and chip design.
The semiconductor push has gained momentum through the Semicon India programme, while the proposed next phase, Semicon 2.0, is designed to deepen capabilities across the entire value chain.
Semiconductors are fundamental to modern industries, powering products ranging from smartphones and automobiles to drones, aircraft and medical equipment. The global electronics industry is estimated at around $4.3 trillion, underlining the strategic importance of reliable chip supplies.
The COVID-19 pandemic also exposed vulnerabilities in global semiconductor supply chains, prompting countries to strengthen domestic capabilities.
India’s semiconductor strategy has been supported by the rapid expansion of its electronics manufacturing sector.
According to the information outlined by Electronics and IT Minister Ashwini Vaishnaw, India now has more than 300 electronics manufacturing units, with production exceeding $130 billion and exports crossing $48 billion. The sector also supports around 2.5 million jobs.
The growth of mobile phone and electronics manufacturing provided an industrial base for the country’s semiconductor ambitions.
The government launched the Semicon India programme in 2021, with the objective of developing a semiconductor ecosystem rather than focusing only on individual manufacturing projects.
Over five years, 12 semiconductor units have been approved with cumulative investment of $20 billion. Three have already begun commercial production:
- Micron: February 28, 2026
- Kaynes: March 31, 2026
- CG Power: July 4, 2026
Construction of the remaining approved facilities is progressing.
Manufacturing is only one part of the semiconductor industry. Chip design requires highly specialised engineering skills, and India is seeking to establish itself as a major global design centre.
Through the Chips to Startup programme, electronic design automation tools have been provided to more than 320 universities and startups.
The government has also supported 105 startups through the Design Link Incentive scheme. Twenty-four startups have received financial assistance totalling $83 million, while 15 subsequently attracted venture capital funding of $118.5 million.
