India’s semiconductor ambitions are gaining momentum, with the government’s second phase of its semiconductor programme attracting nearly $12 billion in investment interest from companies exploring opportunities across chip manufacturing, design, equipment, materials and advanced packaging.
Union Electronics and IT Minister Ashwini Vaishnaw said on September 21 that several companies were already discussing investment plans with the government, with some expected to begin investing in India within the next six months.
The development comes shortly after SEMICON India 2026, where global semiconductor companies, equipment manufacturers and technology firms gathered to discuss India’s growing role in the global chip industry.
India Wants to Build More Than Chip Factories
India’s semiconductor strategy is no longer limited to setting up fabrication plants.
Under Semiconductor Mission 2.0, the government is looking at the wider ecosystem needed to manufacture and develop chips in the country. This includes chip design, semiconductor equipment, specialised materials, fabrication plants, assembly and packaging, research and development, and workforce development.
The government has notified a programme worth around ₹1.27 lakh crore, or roughly $13 billion, covering these areas.
According to Vaishnaw, the current industry interest of around $11–12 billion has emerged from discussions with companies, including some that have not yet publicly announced their plans.
Six Areas Form the Core of Semiconductor Mission 2.0
The next phase of India’s semiconductor programme is built around six broad areas.
The first focuses on strengthening India’s chip-design ecosystem. The government wants more Indian companies and startups to develop semiconductor designs and eventually scale them into global businesses.
The second area covers semiconductor machinery and materials. These are critical components of the manufacturing process and have traditionally been concentrated in a relatively small number of global markets.
The third focuses on attracting additional semiconductor fabrication facilities.
The fourth is advanced packaging, including assembly, testing and packaging technologies that are becoming increasingly important as chip performance requirements rise.
The remaining areas focus on applied research and development and developing the skilled workforce required by the industry.
Global Companies Are Expanding Their India Plans
Recent announcements have added momentum to India’s semiconductor ambitions.
US semiconductor equipment manufacturer Applied Materials announced plans to invest $5 billion in India over the next decade. The company said its investment would support research, supply-chain development and workforce expansion.
Dutch chipmaker Nexperia has also entered into a strategic partnership with Tata Electronics to manufacture and package semiconductor chips in India.
The agreement includes production of Nexperia’s power-control chips at Tata Electronics’ planned Dholera facility and testing and assembly at Tata’s packaging facility in Assam.
These developments show that India’s semiconductor plans are attracting interest not only from chip manufacturers but also from companies involved in equipment, packaging and other parts of the supply chain.
Dholera Remains an Important Part of the Plan
Tata Electronics’ semiconductor project in Dholera, Gujarat, is one of the most closely watched projects in India’s semiconductor programme.
The planned facility is expected to form part of a larger manufacturing ecosystem involving suppliers, equipment companies and semiconductor tech
