Prime Minister Narendra Modi has said India is readying itself to become a global chipmaking hub, while outlining the next phase of the country's semiconductor push at SEMICON India 2026.
Addressing the fifth edition of SEMICON India, Modi said India's semiconductor journey still faces challenges but has moved from the project and planning stage towards commercial production. SEMICON India is being held in New Delhi from September 17–19, with more than 600 companies participating.
A key focus of the address was AI-led semiconductor demand. Modi said the global semiconductor market has been growing at more than 20%, with artificial intelligence emerging as a major driver. AI chips are increasingly being used in data centres, which in turn require substantial amounts of electricity.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
That puts the power sector alongside semiconductor manufacturing in the investment equation, with Modi stressing the need for greater power capacity and infrastructure to support rising compute requirements.
He also highlighted the geopolitical importance of semiconductor supply chains, saying supply chains are being “weaponised” and arguing that India can position itself as a reliable manufacturing location.
ISM 2.0 Expands Semiconductor Opportunity
The government's next phase, India Semiconductor Mission 2.0, has an approved outlay of Rs 1.275 lakh crore, significantly larger than the Rs 76,000 crore allocation for the first phase. The programme expands support beyond manufacturing into chip design, materials, equipment, packaging, R&D and talent development.
Modi said India has moved faster than expected in building capabilities across chip design, testing and other parts of the semiconductor value chain, while calling for more fabless companies and intellectual property to be created domestically.
He also pointed to opportunities in compound semiconductors and silicon photonics, saying these technologies would form part of India's broader chip ecosystem.
The government has already approved 12 semiconductor projects under the first phase of the mission, while commercial production has begun at some facilities. Suchi Semicon and Continental Device India (CDIL) are among projects being developed as part of the expanding ecosystem.
For listed semiconductor and electronics companies, the policy push is relevant because the ecosystem extends beyond fabs to OSAT, packaging, testing, electronics manufacturing, design and related supply chains. That makes the sector's stock-market opportunity broader than pure semiconductor fabrication.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
