SEMICON India 2026: PM Modi Highlights India’s Semiconductor Journey, Says Expanding Ecosystem Is Opening New Opportunities
India is entering a significant new phase in its semiconductor journey as the country moves beyond policy support and individual projects towards building a broader and more integrated technology ecosystem. The fifth edition of SEMICON India 2026, being held at Yashobhoomi in New Delhi from September 17 to 19, brings together more than 600 companies, international participants and technology leaders from across the semiconductor industry. The event is being held under the theme “Silicon to Systems: Building the Ecosystem.”
The focus of the event reflects the changing nature of India's semiconductor ambitions. Instead of concentrating only on chip fabrication, the country is seeking to develop capabilities across design, manufacturing, packaging, testing, equipment, materials, research and talent development. This wider ecosystem is important because modern semiconductor production depends on a complex network of specialised industries working together.
Semicon 2.0 Expands the Foundation
A major development in India's semiconductor strategy is the approval of Semicon 2.0, which received a total outlay of ₹1,27,500 crore in July 2026. The programme builds upon the ₹76,000-crore Semicon India Programme and seeks to provide longer-term support to the industry.
The second phase expands the focus to six broad areas, including chip design, semiconductor equipment and materials, new fabrication facilities, advanced packaging, research and development, and talent development. This approach is intended to strengthen the complete value chain, from the development of intellectual property and manufacturing inputs to finished semiconductor products.
The expansion is particularly relevant as semiconductors are becoming increasingly important for artificial intelligence, telecommunications, electric vehicles, defence systems, data centres and advanced manufacturing. Building capabilities across these areas could also help India develop greater domestic value addition in electronics and technology.
From Project Approvals to Production
India's semiconductor programme has also begun moving from project approvals towards actual manufacturing activity. According to government data, 12 semiconductor projects have been approved across six states, representing investment commitments of more than ₹1.64 lakh crore. Three facilities had already commenced commercial production by July, marking an important transition from planning to manufacturing.
The approved projects cover different parts of the semiconductor value chain, including silicon and compound semiconductor facilities, display fabrication and advanced packaging. Micron, Tata Electronics, CG Power and Kaynes Semicon are among the companies involved in India's developing semiconductor manufacturing landscape.
This diversification is significant because a semiconductor ecosystem cannot be built through fabrication plants alone. Packaging, assembly, testing, specialised materials, equipment and design capabilities are equally important for creating a sustainable industry.
Global Companies Deepen Their India Engagement
SEMICON India 2026 has also highlighted growing international interest in India's semiconductor ambitions. US-based semiconductor equipment manufacturer Applied Materials announced plans to invest $5 billion in India over the next decade, with the investment expected to support research, supply-chain development and workforce expansion.
More than 600 companies and representatives from 52 countries are participating in the event, while country pavilions from Japan, South Korea, Malaysia, the Netherlands, Singapore and Sweden are also part of the exhibition. Such participation provides opportunities for Indian companies, research institutions and startups to establish partnerships with international players across the semiconductor supply chain.
India is also seeking to take advantage of changes taking place in global semiconductor supply chains. Companies around the world are looking to diversify manufacturing and sourcing networks, particularly amid rising demand from artificial intelligence and other advanced technologies. Reuters reported that India has committed more than $21 billion towards semiconductor incentives and expects domestic semiconductor consumption to reach around $110 billion by 2030.
Developing Talent Alongside Infrastructure
Building semiconductor factories is only one part of establishing a competitive industry. The sector requires engineers, chip designers, researchers, equipment specialists and professionals trained in packaging, testing and advanced manufacturing.
India is therefore placing increasing emphasis on semiconductor education and research. Government programmes have provided advanced chip-design tools to academic institutions and startups, while more than 300 chip designs have been developed through organisations participating in the country's semiconductor initiatives.
A stronger talent pool could support both domestic semiconductor companies and international businesses establishing research, manufacturing and supply-chain operations in India. It could also strengthen India's existing position in semiconductor chip design, where the country already has a substantial pool of engineering and technology professionals.
A Broader Role in Global Technology Supply Chains
The semiconductor industry has become a strategic component of the global economy because chips are essential to almost every modern electronic system. Smartphones, automobiles, communication networks, medical equipment, satellites, defence platforms and data centres all depend on semiconductor technologies.
India's objective is therefore not limited to producing chips for domestic consumption. The broader strategy is to develop capabilities that can connect Indian companies with international supply chains while creating opportunities in high-value manufacturing, research and technology development.
The progress made under Semicon 1.0, combined with the expanded scope of Semicon 2.0, indicates a shift towards developing a more complete semiconductor ecosystem. The government's emphasis on equipment, materials, design, research and advanced packaging is intended to complement manufacturing capacity and create stronger links between different parts of the industry.
The MGMM Outlook
SEMICON India 2026 reflects the growing depth of India’s semiconductor ambitions, with the country moving beyond individual projects towards a wider ecosystem covering chip design, manufacturing, packaging, testing, equipment, materials, research and talent development. The expansion through Semicon 2.0, along with major investments and the participation of global technology companies, shows how India is building capabilities across multiple stages of the semiconductor value chain. The participation of more than 600 companies and representatives from 52 countries also highlights the increasing opportunities for international collaboration, technology partnerships and investment.
The progress from project approvals to commercial production is another important development in this journey. With semiconductor facilities becoming operational and programmes supporting education, research and chip design, India is strengthening the foundations required for a sustainable technology industry. As semiconductors become increasingly important for artificial intelligence, telecommunications, automobiles, defence, data centres and advanced manufacturing, the development of a complete domestic ecosystem can create opportunities for innovation, skilled employment, high-value manufacturing and deeper integration with global technology supply chains. SEMICON India 2026 therefore marks another step in India's effort to establish itself as an important participant in the global semiconductor landscape.
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