India Approves Rs 1.6 Lakh Crore Semiconductor Push Under Semicon India

The Government has established the India Semiconductor Mission (ISM) as the nodal agency for appraisal, evaluation and recommendation of semiconductor projects.

The Government of India has significantly accelerated its push to build a self-reliant semiconductor ecosystem, approving 10 major semiconductor manufacturing projects with an envisaged investment of about Rs 1.6 lakh crore, under the flagship Semicon India Programme.

The strategy is inspired by the Prime Minister’s vision of Atmanirbhar Bharat and Make in India, Make for the World, with the objective of establishing a complete semiconductor value chain in the country — spanning design, fabrication, assembly, testing, packaging and module manufacturing.

Rs 76,000 Crore Programme Anchors Semiconductor Strategy

Recognising the foundational role of semiconductors in economic growth, digital transformation and national security, the Government launched the Semicon India Programme with a total outlay of Rs 76,000 crore to catalyse the development of semiconductor and display manufacturing capabilities in India.

Under the programme:

• 10 projects have been approved, including 2 semiconductor fabs and 8 packaging and assembly units

• These include CMOS silicon fabs, silicon carbide fabs, advanced and memory packaging units

• Projects are at various stages of implementation, with pilot production already underway in four facilities

Startup-Led Chip Design Ecosystem Gains Momentum

Alongside manufacturing, the Government is strengthening India’s chip design ecosystem, particularly through startups.

Key achievements include:

• 24 chip design projects supported through startups

• 16 projects have completed tape-outs

• 13 startups have secured venture capital funding

In addition, 350 universities across the country have been provided access to Electronic Design Automation (EDA) tools, empowering over 65,000 engineers and students with industry-grade semiconductor design capabilities.

India Semiconductor Mission as Nodal Agency

The Government has established the India Semiconductor Mission (ISM) as the nodal agency for appraisal, evaluation and recommendation of semiconductor projects.

ISM is supported by:

• Leading semiconductor domain experts

• Representatives from relevant ministries and departments

This structure ensures coordinated policymaking, technical oversight and faster decision-making.

IT Sector Shows Sustained Growth Momentum

The semiconductor push is complemented by the strong performance of India’s IT and software services sector, which continues to expand across both metropolitan and smaller cities and towns.

According to NASSCOM, the sector’s revenue growth over the past five years is as follows (USD billion):

• 2020–21: 196

• 2021–22: 227

• 2022–23: 245

• 2023–24: 269

• 2024–25 (Estimated): 283

Exports are projected to rise from USD 152 billion in 2020–21 to USD 224.4 billion in 2024–25, reflecting India’s growing role in the global digital economy.

Transparency in Investments and FDI Reporting

Foreign Direct Investment (FDI) data for the computer software, hardware and IT services sectors is published regularly by the Department for Promotion of Industry and Internal Trade (DPIIT).

Similarly, investment details of projects approved under the India Semiconductor Mission are made public through the Press Information Bureau, ensuring transparency and accountability.

Major Semiconductor Facilities Approved Across States

The approved projects span multiple states, including Gujarat, Assam, Uttar Pradesh, Odisha, Punjab and Andhra Pradesh, and cover a wide range of technologies such as:

• DRAM and NAND assembly and testing

• Advanced silicon and silicon carbide fabrication

• High-power discrete devices

• Display driver ICs

• Advanced packaging and 3D heterogeneous integration

Collectively, these facilities are expected to place India firmly on the global semiconductor manufacturing map.

Parliamentary Disclosure

The information was shared by Union Minister of State for Electronics and Information Technology, Shri Jitin Prasada, in a written reply to the Lok Sabha on 4 February 2026.

The Government said the semiconductor push represents a strategic investment in India’s technological sovereignty, employment generation and long-term industrial competitiveness.