Prime Minister Narendra Modi announced a renewed phase of India’s semiconductor mission at SEMICON India 2026, inviting global companies to enhance their manufacturing presence in the country, highlighting India’s growing potential as a trusted manufacturing hub.
New Delhi – On September 17, 2023, Prime Minister Narendra Modi inaugurated the fifth edition of SEMICON India 2026, a pivotal event in the government’s ongoing initiative to bolster India’s semiconductor manufacturing capabilities. During his keynote address, Modi articulated a vision for India as a key player in the global semiconductor supply chain, inviting leading international companies to expand their operations in the country amid a growing demand for diversified manufacturing sources.
Modi emphasized that the global landscape is shifting, with companies increasingly seeking reliable and trustworthy manufacturing locations. “The world is looking for new and trusted manufacturing destinations; India is steadily preparing itself to meet this need,” he stated, underlining the progress made since the launch of India’s semiconductor mission in 2022. The Prime Minister announced that commercial production has officially commenced at semiconductor facilities located in Mohali and Surat. Notably, he remarked, “Now our chips, coming out of India’s plants, have started reaching customers in the country and the world,” signifying a major milestone in the operational timeline of the initiative.
Linking Semiconductor Growth to Economic Performance
In his address, Modi linked the expansion of the semiconductor sector to positive economic indicators, citing a robust quarterly GDP growth rate of 7.8%. He also referenced a recent sovereign credit rating upgrade from a Japanese credit agency as a testament to growing international confidence in India’s economic prospects. Furthermore, he highlighted the New Delhi Declaration adopted at the recent BRICS summit as evidence of India’s strengthening global position.
“India’s economy is growing, and on the other hand, the world’s trust in India is also increasing,” Modi asserted. He acknowledged the contributions of industry leaders, referring to them as “the pillars of this success of India; you are partners,” thereby reinforcing the collaborative nature of the semiconductor mission.
Encouraging Comprehensive Industry Development
Modi called on industry leaders to enhance the capabilities across the semiconductor value chain, which encompasses chip design, manufacturing equipment, materials, testing, and packaging. He urged companies to establish research partnerships with Indian universities and institutions, emphasizing the need for collaboration with young talents. He stated, “Young talents who are researching in India should come forward; the youth who are researching abroad should also join the development of advanced technologies in India,” signaling a push for a knowledge-driven approach to semiconductor innovation.
The launch of the second phase of the semiconductor program was approved in July, with a substantial budget allocation of INR 1.275 lakh crore (approximately USD 15.4 billion). Modi noted that regulatory reforms are underway to foster partnerships between multinational corporations, local startups, and design firms, with a specific focus on nurturing fabless semiconductor enterprises and local intellectual property development.
Job Creation and Educational Initiatives
According to estimates presented by Modi, the second phase of the semiconductor initiative is projected to create between 150,000 to 200,000 direct and indirect jobs, a significant boost for employment in the sector. Currently, India imports around 90% of its semiconductor needs, costing the nation approximately USD 30 billion annually. To address this, the government has set an ambitious target to cultivate a domestic semiconductor market valued at USD 200 billion.
In conjunction with these efforts, the government aims to train 100,000 engineering students in chip design and related disciplines; as of now, approximately 70,000 students have already undergone training. Modi highlighted the essential role of reliable energy sources in supporting the burgeoning semiconductor industry, especially as data centers for artificial intelligence and advanced manufacturing facilities expand. He pointed out ongoing investments in solar and nuclear power to meet these rising energy needs.
Progress and Future Prospects
The first phase of India’s semiconductor mission received around INR 76,000 crore (approximately USD 9.1 billion) in government support. To date, twelve manufacturing projects worth more than INR 1.64 lakh crore (about USD 19.8 billion) have been approved across various states, including Gujarat, Uttar Pradesh, Punjab, Odisha, and Andhra Pradesh. These projects include a diverse range of facilities, such as silicon fabs, a silicon carbide fab, a gallium nitride micro-LED display fab, and numerous assembly, test, marking, and packaging operations.
Key industry players, including Micron, Kaynes, and CG Semi, have already initiated commercial production, with additional facilities expected to commence operations by the end of the year. The ongoing SEMICON India 2026 event, themed “Silicon to Systems: Building the Ecosystem,” runs from September 17 to 19, featuring over 500 exhibitors, including 243 international companies, and attracting delegates from more than 40 countries. This gathering serves as a crucial platform for industry networking and knowledge sharing, further solidifying India’s role in the global semiconductor landscape.
