**Executive Summary**
The document outlines India's strategic transition into a global semiconductor hub through the Semicon India Programme, targeting a $200 billion domestic market by 2035. It highlights the approval of 12 manufacturing projects across six states and the evolution from chip design to a comprehensive ecosystem under Semicon India 2.0. Key focuses include strengthening the entire value chain, fostering international partnerships, and developing a pipeline of industry-ready talent.
**Key Points / Main Content**
**Growth and Economic Impact**
* Electronics production has increased seven-fold and exports eleven-fold over the last 11 years, making India the world's second-largest mobile phone manufacturer.
* The sector has generated approximately 25 lakh jobs, with women comprising 30% of the electronics workforce and 70% of the direct mobile manufacturing workforce.
* The Semicon India Programme 1.0 was launched in December 2021 with an outlay of ₹76,000 crore to build a competitive ecosystem through the India Semiconductor Mission (ISM).
**Manufacturing and Regional Progress**
* Twelve semiconductor manufacturing projects have been approved across Gujarat, Uttar Pradesh, Punjab, Assam, Odisha, and Andhra Pradesh.
* Three facilities (Micron ATMP, Kaynes Semicon, and CG Power OSAT) have already commenced commercial production, with two more expected to start by the end of 2026.
* Approved projects span various segments, including Silicon Fab, Compound Semiconductor Fab, Micro LED Display GaN Fab, and nine ATMP/OSAT facilities.
**Semicon India Programme 2.0**
* The 2.0 phase expands beyond manufacturing to include the entire value chain: materials, equipment, specialty chemicals, and advanced packaging.
* The programme is built on six strategic pillars: chip design, equipment and materials, fabrication, advanced packaging, R&D, and talent development.
* The initiative aims to accelerate the localization of semiconductor-grade materials and integrate Indian companies into global supply chains.
**Design and Talent Development**
* India currently possesses nearly 20% of the world’s semiconductor design talent.
* Under the Design Linked Incentive (DLI) Scheme, 24 chip design projects have been approved, and students have already designed 175 chips for various sectors.
* The "Chips to Startup" (C2S) initiative has trained over 68,000 students, and a new semiconductor curriculum has been adopted by more than 500 engineering colleges.
**Global Partnerships**
* India has established technology collaborations with the United States, Japan, Singapore, the Netherlands, Germany, and the European Union.
* Major global companies, including Applied Materials, AMD, Lam Research, KLA, and Microchip Technology, have announced investments and collaborations in India.
**Impact Analysis**
**State Governments**
**Impact**
Progressive states are becoming central hubs for semiconductor manufacturing, leading to regional industrial growth and infrastructure development.
**Action Required**
Develop and implement dedicated semiconductor policies that offer additional investment incentives to attract global and domestic players.
**Industry and MSMEs**
**Impact**
Local companies and MSMEs gain opportunities to supply semiconductor-grade materials, equipment, and services, facilitating integration into global supply chains.
**Action Required**
Invest in localized manufacturing of materials and equipment to meet the rising domestic demand generated by new fabrication and packaging projects.
**Educational Institutions and Students**
**Impact**
Academic institutions receive access to Electronic Design Automation (EDA) tools and a specialized curriculum to create a pipeline of industry-ready talent.
**Action Required**
Engineering colleges must adopt the new semiconductor curriculum and participate in the Chips to Startup (C2S) training initiatives.
**Global Technology Partners**
**Impact**
International firms gain a stable, democratic, and transparent business environment for manufacturing, design, and R&D in a rapidly expanding market.
**Action Required**
Finalize investment plans and collaborate with the India Semiconductor Mission (ISM) to establish manufacturing facilities and research centers.
Key Entities Referenced
Semicon India Programme 2.0: The flagship government initiative aimed at developing a comprehensive semiconductor ecosystem in India, focusing on the entire value chain from design and fabrication to advanced packaging.
India Semiconductor Mission (ISM): The nodal agency and mission-mode implementation body responsible for driving India's semiconductor and display ecosystem through globally competitive incentives.
Design Linked Incentive (DLI) Scheme: A specific initiative under the semiconductor mission providing financial and infrastructure support for semiconductor design, including EDA tools and chip design projects.
Production Linked Incentive (PLI) Scheme: A foundational policy framework for large-scale electronics manufacturing that provided the manufacturing base for India's transition into the semiconductor sector.
Gujarat, Uttar Pradesh, Punjab, Assam, Odisha, and Andhra Pradesh: The six primary states identified as central to the semiconductor mission's impact, hosting the first 12 approved manufacturing and ATMP/OSAT projects.
Ministry of Electronics & IT
Safe Workplace & High Value Jobs characterise
India's Chip Ecosystem as we are Emerging as
Trusted Global Hub in Electronics &
Semiconductor
Strengthening Technological Self-Reliance, India's
Semiconductor Mission Expands from Chip Design to
Complete Manufacturing
Progressive States lead the Way, 12 Semiconductor Projects
Approved Across Six States with 3 already rolling out the
chips
India Now Targets Domestic Semiconductor Market worth
200 Billion Dollar by 2035 through Semicon India Programme
2.0 Paving way for More Advanced Electronics Manufacturing
in India
प्रव तथ: 15 JUL 2026 3:39PM by PIB Delhi
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.
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Dharmendra Tewari / Kanishk Sharma / Vanshita Jaiswal
(रलीज़ आईडी: 2284806) आगंतुक पटल : 1009
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