Semicon India 2.0 Sets Stage for India's Chip Manufacturing Future

Government data shows that electronics production has increased seven-fold over the past eleven years, while electronics exports have grown eleven times.

India is stepping into a new phase of technological growth with the launch of Semicon India Programme 2.0, a nationwide initiative designed to build a complete semiconductor ecosystem that supports everything from chip design and manufacturing to research, advanced packaging, equipment, materials and skilled talent. The programme reflects the country's ambition to strengthen supply chains, reduce dependence on imports and establish itself as a trusted global destination for semiconductor production.

The move comes after more than a decade of rapid expansion in electronics manufacturing, which has created a strong industrial base capable of supporting the country's growing semiconductor ambitions.

Manufacturing projects and skilled workforce drive the next phase

Government data shows that electronics production has increased seven-fold over the past eleven years, while electronics exports have grown eleven times. Mobile phone production has expanded thirty-two-fold, with exports rising 165 times, making India the world's second-largest mobile phone manufacturer.

The semiconductor sector is also gathering momentum, with 12 projects approved across six states. Three manufacturing facilities have already entered commercial production, including Micron ATMP, Kaynes Semicon and CG Power OSAT, while two more are expected to become operational before the end of the year.

India is strengthening its position in semiconductor design as well, accounting for nearly 20 per cent of the world's semiconductor design talent. Under the Design Linked Incentive Scheme, 24 chip design projects and more than 100 Electronic Design Automation tool applications have received approval. Students have already designed and fabricated 175 semiconductor chips for sectors such as healthcare, telecommunications, artificial intelligence, automotive technology and satellite communications.

The Government has also expanded skill development through the Chips to Startup initiative, which has introduced semiconductor design tools in 320 academic institutions and trained more than 68,000 students. More than 500 engineering colleges have adopted a dedicated semiconductor curriculum to prepare the next generation of industry professionals.

Global partnerships strengthen India's semiconductor ambitions

Semicon India Programme 2.0 broadens the country's strategy by supporting six key areas, including chip design, fabrication, semiconductor equipment, advanced packaging, research and talent development. The initiative is expected to create fresh opportunities for MSMEs while encouraging greater domestic production of semiconductor-grade materials and manufacturing equipment.

India is also deepening cooperation with global technology partners through collaborations with the United States, Japan, Singapore, Germany, the Netherlands and the European Union. Several leading technology companies, including AMD, Applied Materials, Lam Research, KLA and Microchip Technology, have announced investments and partnerships that will contribute to the country's expanding semiconductor ecosystem.

As worldwide demand for semiconductors continues to rise with the growth of artificial intelligence, electric vehicles, 5G and connected devices, India is positioning itself to become a reliable global hub for semiconductor manufacturing, innovation and advanced technology, supporting its broader vision of technological self-reliance and Viksit Bharat.