Prime Minister Narendra Modi on Thursday said India is positioning itself as a trusted destination for global semiconductor manufacturing, highlighting government efforts to create policies and frameworks that support the growth of the chip industry.
Speaking at the inauguration of SEMICON India 2026, Modi said India's semiconductor ecosystem is expanding rapidly and creating new opportunities for innovation, investment and economic growth.
The Prime Minister said the global semiconductor industry needs new and reliable manufacturing locations as companies seek to diversify supply chains. He said India is taking steps to establish itself as a preferred destination for semiconductor manufacturing.
According to Modi, 12 semiconductor manufacturing projects have been approved so far, with the number expected to increase in the next phase of the country's semiconductor programme.
He also said the outlay under India Semiconductor Mission 2.0 has been increased to USD 13.5 billion from USD 8 billion during the first phase. The government, he said, is working on the policies and regulatory framework required to support manufacturers and encourage further investment in the sector.
India is also seeking to build a complete semiconductor ecosystem covering chip design, fabrication, advanced packaging, testing, equipment, materials, research and talent. The broader effort is aimed at strengthening domestic electronics manufacturing and reducing dependence on concentrated global supply chains.
The government's semiconductor strategy is being supported by financial incentives as India seeks to attract international manufacturers and use its engineering workforce, domestic consumer market and strategic location to develop a wider chip manufacturing and electronics ecosystem.
At the event, Applied Materials announced plans for USD 5 billion in investments under its Vision 2035 initiative. The investment is aimed at integrating India's semiconductor ecosystem more closely with global value chains.
The announcements come as countries and companies worldwide seek to diversify semiconductor supply chains and expand manufacturing capacity beyond established production hubs.
