India's semiconductor manufacturing ambitions have gained significant momentum, with the country now hosting 12 semiconductor units involving investments of nearly USD 20 billion, Union Minister for Electronics and Information Technology Ashwini Vaishnaw said on Saturday.
The minister added that three of these facilities have already begun manufacturing semiconductor chips, marking a major milestone in India's efforts to establish a robust domestic semiconductor ecosystem.
Sharing an update on the government's progress through a post on X, Vaishnaw highlighted the transformation achieved since the launch of the Semicon India programme in 2022, describing it as a carefully planned initiative built on lessons learned from earlier attempts to attract semiconductor manufacturing to the country.
"2022: We started Semicon India. Learnt from past attempts. Clear policy and execution," Vaishnaw wrote, emphasizing that a well-defined policy framework, timely approvals, and focused implementation have been key factors behind the programme's success.
According to the minister, the initiative has now resulted in 12 semiconductor manufacturing and related units with a combined investment of approximately USD 20 billion. More importantly, three of these facilities have already commenced chip production, signalling India's transition from announcing semiconductor projects to actually manufacturing chips within the country.
Vaishnaw also announced that the government has approved Semicon 2.0, the next phase of India's semiconductor mission, which aims to accelerate the growth of the sector and further strengthen the country's capabilities across the semiconductor value chain.
"2026: 12 semiconductor units with USD 20 billion investment. Three units already making chips. Semicon 2.0 approved. And we are just getting started...," the minister said.
His remarks came in response to a social media post recalling that American semiconductor giant AMD had once proposed making India its semiconductor manufacturing hub and planned to invest around USD 3 billion in a fabrication plant in 2005. However, that proposal did not materialise because of regulatory hurdles, infrastructure constraints, and policy-related challenges that existed at the time.
The comparison highlights the significant changes in India's semiconductor landscape over the past two decades. Today, the government has introduced dedicated incentive schemes, financial support, and policy reforms designed to attract global semiconductor companies while encouraging domestic manufacturing and technology development.
The semiconductor industry has become a strategic priority for India as countries worldwide seek to diversify supply chains following disruptions caused by the COVID-19 pandemic and rising geopolitical tensions. Governments across the globe are investing heavily in domestic chip manufacturing to reduce dependence on a limited number of production hubs concentrated in East Asia.
Semiconductors are at the heart of modern technology and are essential components used in smartphones, computers, automobiles, industrial machinery, consumer electronics, telecommunications equipment, defence systems, medical devices, and emerging technologies such as artificial intelligence, electric vehicles, robotics, and the Internet of Things.
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India's push into semiconductor manufacturing is aimed not only at meeting rising domestic demand but also at positioning the country as a reliable global manufacturing destination. The government believes that developing a complete semiconductor ecosystem—including chip fabrication, assembly, testing, packaging, design, research, and skilled workforce development—will enhance technological self-reliance and strengthen India's role in global electronics manufacturing.
Industry experts view the commencement of chip production at three facilities as an important milestone, demonstrating that projects announced under the Semicon India programme are moving beyond planning and construction into commercial operations. This is expected to boost investor confidence and encourage additional domestic and international companies to establish semiconductor operations in India.
With Semicon 2.0 now approved, the government is expected to focus on expanding manufacturing capacity, supporting advanced semiconductor technologies, strengthening supply chains, and attracting fresh investments. The next phase of the programme will play a crucial role in determining whether India's initial progress can evolve into a globally competitive semiconductor industry capable of serving both domestic requirements and international markets.
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