Prime Minister Narendra Modi inaugurated SEMICON India 2026 in New Delhi on Thursday and announced $13.5 billion for the second phase of the ‘India Semiconductor Mission’. This marks a new initiative aimed at boosting the country’s chip manufacturing ecosystem and strengthening its position in the global semiconductor supply chain.
Prime Minister Narendra Modi said India’s semiconductor push has moved from policy planning to pilot production and commercial manufacturing. The government has approved 12 projects across six states with investments exceeding ₹1.64 lakh crore, Three of the approved projects had entered commercial production by July 2026, according to government data.
The Prime Minister said the next phase of India’s semiconductor programme will focus on building an integrated ecosystem, rather than focusing solely on fabrication plants.
India looks beyond chip manufacturing
Modi said India’s semiconductor ambitions extend beyond chip manufacturing to design, equipment, testing and packaging, specialised materials and intellectual property. He urged companies in these areas to explore opportunities as India’s semiconductor ecosystem expands.
Noting the rising demand for AI in high-performance computing and data centers, the Prime Minister highlighted fabless semiconductor companies and silicon photonics as key areas for growth. The government stated that the program aims to build a robust domestic supply chain and reduce reliance on global manufacturing networks concentrated in specific locations.
Government focuses on semiconductor talent
The Prime Minister also identified India’s engineering workforce as a major asset for the semiconductor industry. He said the government aims to train one lakh engineering students in specialised semiconductor and chip-design skills, with around 70,000 students already trained under the initiative.
Modi urged Indian researchers, including those working overseas, to contribute to the development of advanced technologies in the country. He also called for greater private-sector participation in research and development, saying stronger links between industry, universities and researchers could create opportunities for both technological innovation and employment.
Energy security has become part of the chip strategy.
Modi stated that reliable electricity would be crucial for achieving India’s semiconductor-related goals. Semiconductor manufacturing units require uninterrupted power, while a significant rise in electricity demand is also expected from AI data centers.
The Prime Minister highlighted India’s expanding energy capacity, including solar power capacity that has crossed 160 GW. He also pointed to the opening of the nuclear energy sector to private participation and the development of small modular reactors.
These points highlight the government’s comprehensive vision of linking semiconductor manufacturing with infrastructure, energy security, skilled manpower, and research capabilities.
SEMICON India draws global participation
The fifth edition of SEMICON India is being held from September 17 to 19 under the theme “Silicon to Systems: Building the Ecosystem.”
Semiconductor manufacturers, equipment suppliers, investors, researchers, startups, and policymakers from India and abroad are coming together for this event. The government has stated that the exhibition features over 600 exhibitors, including approximately 300 international companies and representatives from more than 40 countries.
Modi welcomed international participants and described the event’s inauguration on Vishwakarma Diwas as a symbolic link between India’s traditional culture of craftsmanship and its ambitions in advanced technology.
Modi highlights wider economic developments
In his address, Modi also highlighted India’s recent economic and infrastructure development, including a quarterly GDP growth of 7.8%, the operationalization of the 3,000-kilometer-long Dedicated Freight Corridor, and progress in India’s international economic engagement.
Referring to the recent sovereign rating upgrade by a Japanese credit-rating agency and the BRICS summit hosted by India, he stated that these developments are signs of growing international confidence in the Indian economy. The Prime Minister stated that India’s semiconductor ambitions are deeply intertwined with its broader goal of building a developed and technologically capable economy.
As semiconductor projects move towards commercial production and the government prepares for the next phase of financial and policy support, the focus is now shifting to creating the supporting ecosystem necessary to sustain large-scale chip manufacturing in India.
