SEMICON India 2026: India’s Semiconductor Ambition Enters a New Phase

India is set to host the fifth edition of SEMICON India 2026 from September 17 to 19 at Yashobhoomi in New Delhi. Organised jointly by the India Semiconductor Mission (ISM) and SEMI, the event will bring together semiconductor companies, global technology leaders, policymakers, investors, researchers, startups and academic institutions.

This year’s theme, “Silicon to Systems: Building the Ecosystem,” reflects the changing nature of India’s semiconductor ambitions. The focus is no longer limited to attracting individual chip manufacturing projects but is increasingly centred on creating an integrated ecosystem covering design, manufacturing, packaging, equipment, materials, research and skilled talent.

The event will be held against the backdrop of semiconductor projects under the first phase of the India Semiconductor Mission (ISM 1.0) moving towards commercial production | Business Standard

A Growing Global Presence

SEMICON India 2026 is expected to be significantly larger in scale, with more than 500 exhibitors and participation from companies and delegations representing countries across the global semiconductor industry. The event is designed to provide a platform for technology partnerships, investment opportunities and discussions around the future of semiconductor manufacturing and electronics in India.

The growing international participation comes as companies worldwide look to build more resilient and diversified semiconductor supply chains. India’s large electronics market, engineering talent and expanding manufacturing capabilities give it an opportunity to become a more important part of this global network.

From Policy to Actual Production

India’s semiconductor programme has reached a crucial stage. Under Semicon 1.0, the government approved 12 semiconductor manufacturing projects involving cumulative investments of more than ₹1.64 lakh crore. These projects include semiconductor fabrication, packaging and other specialised facilities intended to serve industries ranging from automobiles and telecommunications to consumer electronics, aerospace and power electronics.

The progress is already moving beyond the investment stage. According to the government, Micron, Kaynes and CG Semi have begun commercial production, while additional projects are expected to become operational during 2026. Industry officials have indicated that five to six semiconductor projects could reach commercial production by the end of this year.

Semicon 2.0 Expands the Vision

The next phase of the programme, Semicon 2.0, takes the semiconductor strategy further. Approved in July 2026 with a budget outlay of ₹1,27,500 crore, the programme aims to strengthen the broader ecosystem rather than focusing only on chip manufacturing.

Its priorities include semiconductor design, equipment and materials, new fabrication facilities, ATMP and OSAT capabilities, research and development, and talent development. The approach recognises that a successful semiconductor industry requires a complete supply chain, including the specialised machinery, materials, research capabilities and skilled workforce needed to support manufacturing at scale.

India’s Chip Design Ecosystem Gains Momentum

Manufacturing is only one part of India’s semiconductor strategy. The country is also attempting to build stronger domestic capabilities in chip design and intellectual property.

Under the Design Linked Incentive programme, 24 semiconductor design projects from startups and MSMEs have received financial support, while 105 startups and MSMEs have received access to industry-standard electronic design automation tools. These companies are working on applications ranging from artificial intelligence and telecommunications to drones, satellite communications, IoT devices and smart infrastructure.

This growing design ecosystem could become an important advantage for India because it allows domestic companies to participate in higher-value segments of the semiconductor industry rather than remaining focused only on assembly and manufacturing.

The Importance of a Complete Ecosystem

Building semiconductor fabs requires more than large financial investments. A modern chip industry depends on reliable supplies of specialised chemicals and gases, advanced manufacturing equipment, packaging facilities, testing capabilities, research institutions and highly trained engineers.

Semicon 2.0 therefore places greater emphasis on developing these supporting capabilities within India. The India Semiconductor Mission has identified equipment and materials, fabrication, advanced packaging, research and talent development alongside chip design as key pillars of the next phase. This broader approach could help India gradually increase domestic value addition while reducing vulnerabilities created by excessive dependence on overseas supply chains.

A Strategic Opportunity for India

Semiconductors are at the heart of modern technology. Smartphones, automobiles, telecommunications networks, artificial intelligence systems, defence platforms and data centres all depend on advanced chips.

As global demand for semiconductors continues to rise, India has an opportunity to use its growing domestic electronics market and strong engineering base to attract investment and develop indigenous capabilities. The government’s semiconductor strategy is aimed not only at meeting domestic requirements but also at positioning India as a trusted participant in global supply chains.

The MGMM Outlook 

SEMICON India 2026 reflects how India’s semiconductor strategy is moving beyond attracting individual investments towards building a complete, globally competitive ecosystem. With major companies already entering commercial production and Semicon 2.0 expanding support for chip manufacturing, design, packaging, equipment, research and skilled talent, India is steadily strengthening its position in a sector critical to modern technology and national security.

The larger opportunity lies in turning this momentum into sustained domestic capability. By combining its engineering talent, growing electronics market and expanding manufacturing base with stronger research and indigenous chip design, India can reduce supply-chain vulnerabilities while becoming a more important player in global semiconductor networks. The focus on the entire value chain also gives Indian startups and manufacturers an opportunity to move into higher-value segments and build long-term technological strength.

(Sources: Business Standard, The Hindu BusinessLine, DD News)