India’s Semiconductor Push Gains Momentum as Investments Expand Across Chip Manufacturing Ecosystem

India is expanding its semiconductor manufacturing and technology ecosystem as the government seeks to strengthen domestic capabilities across chip design, fabrication, packaging, testing and related activities.

Under the India Semiconductor Mission, the government has approved 12 semiconductor manufacturing projects with investment commitments exceeding ₹1.64 lakh crore. The approved projects cover different parts of the semiconductor value chain, including semiconductor fabrication, compound-semiconductor manufacturing, display fabrication and packaging facilities. :contentReference[oaicite:1]{index=1}

Semiconductors are essential components used in smartphones, computers, automobiles, medical equipment, telecommunications systems, aerospace applications and several other electronic products. Developing domestic capabilities in this sector is therefore a key part of India’s broader electronics manufacturing strategy.

The approved projects are expected to expand activities across several segments of the supply chain. These include chip fabrication, assembly and testing, advanced packaging and semiconductor design. The government’s semiconductor initiatives also focus on equipment, materials, research and development and skilled manpower.

In July 2026, the Union Cabinet approved Semicon India Programme 2.0 with a total budget outlay of ₹1,27,500 crore. The initiative is aimed at further developing India’s semiconductor design and manufacturing ecosystem, including support for equipment and materials, fabrication, advanced packaging, research and development and talent development. :contentReference[oaicite:2]{index=2}

The government has also been seeking to attract global companies and encourage domestic firms to establish semiconductor manufacturing and technology capabilities in India. The objective is to build a more integrated ecosystem and strengthen the country’s participation in global electronics supply chains.

Employment is another area expected to benefit as semiconductor facilities and supporting industries expand. Government plans include development of skilled professionals for chip design, manufacturing, engineering, research and other specialized areas. :contentReference[oaicite:3]{index=3}

Several approved projects are already moving into execution, while some facilities have begun commercial production. According to the government, three semiconductor facilities had commenced commercial production by July 2026, indicating that the sector is moving beyond project approvals toward manufacturing activity. :contentReference[oaicite:4]{index=4}

Further investment, project timelines and employment details will become clearer as the approved facilities progress through construction, commissioning and commercial operations. The development of capabilities across design, manufacturing, packaging, testing and related technologies is expected to remain a major focus of India’s semiconductor strategy.