Semiconductors rarely attract attention, yet they quietly power nearly every aspect of modern life. From the smartphone used to make a UPI payment and the vehicle navigating city roads to medical equipment in hospitals, satellites in space and the digital infrastructure supporting governance, tiny semiconductor chips have become the foundation of today's connected world. As technologies such as artificial intelligence, 5G, electric mobility and the Internet of Things become increasingly integral to daily life, the demand for semiconductors is growing at an unprecedented pace across the globe.

For India, this presents both an opportunity and a strategic imperative. Having built one of the world's fastest-growing electronics manufacturing ecosystems over the past decade, the country is now entering the next phase of its technological journey by developing a comprehensive semiconductor ecosystem. Through the Semicon India Programme 2.0, the Government is expanding its focus beyond chip manufacturing to strengthen the entire value chain, from design and fabrication to advanced packaging, materials, equipment, research and skilled talent—laying the foundation for resilient supply chains, high-value employment and long-term technological self-reliance.

Building on a Decade of Electronics Manufacturing Growth

India's emergence as a semiconductor destination has been built on sustained reforms across the electronics sector. Successive policy initiatives, including the National Policy on Electronics, SPECS, EMC 2.0, the Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing and the Electronics Components Manufacturing Scheme (ECMS) - have transformed the Electronics System Design and Manufacturing (ESDM) ecosystem.

Over the last eleven years, electronics production has increased seven-fold, electronics exports eleven-fold, mobile phone production thirty-two-fold and mobile phone exports 165-fold. Today, India is the world's second-largest mobile phone manufacturer, providing a strong manufacturing base for the country's transition into semiconductor manufacturing.

Progressive States Lead India's Semiconductor Growth

Progressive states are at the forefront of India's semiconductor growth, with 12 semiconductor projects approved across six states. Three facilities have already commenced commercial production, while two others are expected to begin production by the end of the year, further expanding the country's manufacturing ecosystem. Guided by the vision of Make in India and Atmanirbhar Bharat, India is steadily building a trusted semiconductor ecosystem where chips designed and manufactured in the country are recognised globally for their quality and reliability, supported by transparent policies, democratic values and a stable business environment. The rapid expansion of the electronics manufacturing ecosystem has also generated around 25 lakh jobs over the last decade. Women constitute around 30% of the electronics manufacturing workforce, while the mobile manufacturing ecosystem employs around 12 lakh people across the value chain, with women accounting for around 70%  of the direct workforce in mobile manufacturing, reflecting the sector's contribution to inclusive industrial growth.

Semicon India Programme: Laying the Foundation

Approved in December 2021 with an outlay of ₹76,000 crore, the Semicon India Programme was launched to build a globally competitive semiconductor ecosystem in response to supply chain disruptions witnessed during the COVID-19 pandemic. Implemented through the India Semiconductor Mission (ISM), the programme adopted a mission-mode approach with globally competitive incentives, pari-passu funding and flexible utilisation of funds to support semiconductor manufacturing.

Unlike earlier efforts focused primarily on fabrication, the programme recognised that a globally competitive semiconductor industry requires an integrated ecosystem encompassing design, fabrication, packaging, testing, equipment, specialty chemicals, industrial gases, logistics and skilled manpower.

Strong Progress Under Semicon India Programme 1.0

India has already approved 12 semiconductor manufacturing projects spanning multiple segments of the value chain, comprising one Silicon Fab, one Compound Semiconductor Fab with Packaging, one Micro LED Display GaN Fab with Packaging and nine ATMP/OSAT facilities across Gujarat, Uttar Pradesh, Punjab, Assam, Odisha and Andhra Pradesh.

A major milestone has been achieved with commercial production commencing at three semiconductor facilities, Micron ATMP, Kaynes Semicon and CG Power OSAT, marking India's transition from policy intent to semiconductor manufacturing and laying the foundation for a resilient domestic semiconductor ecosystem.

Building a Strong Semiconductor Design and Talent Base

Alongside manufacturing, India continues to strengthen its leadership in semiconductor design, with nearly 20 per cent of the world's semiconductor design talent. Under the Design Linked Incentive (DLI) Scheme, 103 applications for Electronic Design Automation (EDA) tools and 24 chip design projects have been approved, while 15 companies have received venture capital support. Students have also designed and fabricated 175 semiconductor chips for applications ranging from automotive and healthcare to telecommunications, AI and satellite communication.

To meet future workforce requirements, the Government has prioritised semiconductor skilling through initiatives such as Chips to Startup (C2S), under which EDA tools have been deployed in 320 academic institutions and over 68,000 students trained. A new semiconductor curriculum has also been adopted by 500+ engineering colleges, creating a strong pipeline of industry-ready talent.

Semicon India Programme 2.0: Expanding the Ecosystem

Building on the foundation laid under Semicon India Programme 1.0, Semicon India Programme 2.0 aims to develop a complete and globally competitive semiconductor ecosystem. The programme extends support beyond chip manufacturing to strengthen the entire value chain, recognising that a resilient semiconductor industry depends equally on equipment, specialty chemicals, industrial gases, advanced packaging, research and skilled manpower.

The programme focuses on six strategic pillars: chip design, semiconductor equipment and materials, fabrication facilities, advanced packaging, research and development, and talent development. As more manufacturing projects are established, domestic demand for semiconductor-grade materials and equipment is expected to accelerate localisation, create new opportunities for MSMEs and integrate Indian companies into global supply chains.

Partnerships Driving the Next Phase of Growth

India's semiconductor ecosystem is being strengthened through close collaboration with States and global technology partners. Multiple States have announced dedicated semiconductor policies offering additional incentives for investment, while partnerships with countries including the United States, Japan, Singapore, the Netherlands, Germany and the European Union are supporting technology collaboration and ecosystem development. Global companies such as Applied Materials, AMD, Lam Research, KLA and Microchip Technology have also announced investments and collaborations in India.

Towards a Globally Competitive Semiconductor Hub

With global semiconductor demand projected to expand rapidly over the coming decade, India is well positioned to emerge as a trusted destination for semiconductor manufacturing and innovation. Through sustained investments in manufacturing, research, design and talent development, Semicon India Programme 2.0 seeks to strengthen domestic value addition, generate high-quality employment, enhance supply chain resilience and accelerate India's journey towards technological self-reliance. As the country builds capabilities across the complete semiconductor value chain, it is laying the foundation for a resilient, innovation-driven and globally competitive semiconductor ecosystem that will support the vision of Viksit Bharat.

****

Dharmendra Tewari / Kanishk Sharma / Vanshita Jaiswal