India Shifts Semiconductor Strategy From Policy Focus To Production Expansion
India accelerates semiconductor manufacturing with major investments and facilities.
India’s semiconductor mission has entered a new phase with the country moving from policy development to actual production, Union Electronics and IT Minister Ashwini Vaishnaw said. The programme has approved 12 semiconductor units with a combined investment commitment of around Rs 1.6 lakh crore, approximately $20 billion, marking a major step towards building domestic chip manufacturing capabilities.
Vaishnaw said India’s semiconductor initiative has moved beyond planning and entered the execution stage, with several approved projects progressing towards production. Three semiconductor facilities are currently operational, indicating progress in the government’s efforts to establish a domestic ecosystem for chip manufacturing and reduce dependence on global supply chains.
The next phase, Semicon 2.0, aims to expand India’s semiconductor ecosystem beyond manufacturing facilities. The initiative will focus on multiple areas, including semiconductor design, fabrication, chip packaging technologies such as ATMP and OSAT, equipment and materials development, research and innovation, and creating a skilled workforce to support the growing industry.
Also Read: South Rajasthan's Tribal Vote Emerges As Key Factor In Sachin Pilot's 2028 Strategy
The Union Cabinet has approved Semicon 2.0 with an allocation of Rs 1.27 lakh crore to strengthen India’s semiconductor design and manufacturing capabilities. The programme is designed to develop an integrated chip ecosystem, improve domestic supply chains and position India as a significant player in the global semiconductor market.
Vaishnaw said the government’s current strategy was shaped by lessons from earlier challenges faced by the semiconductor sector. He pointed to previous unsuccessful attempts, including a proposed $3 billion investment by AMD in 2005 that did not progress due to policy and execution issues. Since 2022, the government has focused on creating policy stability, providing financial support and improving implementation mechanisms to attract investments.
The expansion of semiconductor manufacturing is expected to support key sectors such as smartphones, automobiles, telecommunications, defence and emerging artificial intelligence technologies. Through Semicon 2.0, India aims to move beyond individual manufacturing projects and develop a complete chip value chain, strengthening its role in the global semiconductor supply network.
Also Read: How India's Indo-Pacific Strategy Is Countering China's 'String Of Pearls'
