India’s plan for semiconductor ambitions has garnered significant momentum over the past few years. This comes with several government incentives, new fabrication units, and growing investor interest, putting the sector firmly in the national spotlight. In terms of design and intellectual property rights, India hosts nearly 20 per cent of the world's chip-design talent. Initiatives like the Design Linked Incentive (DLI) and Chips-to-Startup (C2S) programs aim to scale up to 200+ domestic chip-design startups and foster local system design. Focusing on machines and materials, companies are also establishing manufacturing operations which can benefit from India's developing precision manufacturing ecosystem, which serves multiple sectors including aerospace, aviation, semiconductors and advanced electronics. Another pillar of India’s semiconductor strategy focuses on diversifying fabrication across display, memory, silicon, compound and logic fabs, with growing global investor confidence. Advanced packaging is prioritised for its role in boosting system-level efficiency. R&amp;D will be driven through industry-government-academia collaboration, with joint funding for applied projects aimed at tangible outcomes. Talent development builds on roughly 400 universities currently offering chip-design education, with Semicon 2.0 upgrading curricula to help students advance from foundational chip design to systems design, strengthening India’s broader semiconductor capabilities. Meanwhile, several industry experts warned that chip manufacturing alone will not be enough. Building a resilient, globally competitive semiconductor industry, they argue, requires India to develop capabilities across the entire value chain, from design and materials to packaging, testing, and end-use applications.<h3>Beyond fabrication: The case for a full-stack ecosystem</h3>Kajal Shah, Co-founder &amp; CEO of Dreamfly Innovations, said that India’s semiconductor journey needs to extend well past the fabrication plant. "India’s semiconductor journey must go beyond chip manufacturing to include indigenous design, materials, packaging, testing, power electronics, and embedded systems. These capabilities are essential for building advanced applications in drones, aviation, aerospace, and electric mobility. At Dreamfly Innovations, we believe that collaboration between semiconductor, battery, electronics, and aerospace companies can help India create a resilient and globally competitive deep-tech ecosystem," Shah said. Amarjeet Singh Tak, Head - Research and Microscopy Solutions at ZEISS India and Neighbouring Markets, echoed this view, arguing that India’s semiconductor vision should span “the entire value chain, including chip design, advanced manufacturing, equipment, materials, packaging, testing, software, research and end-use applications.” "Building a resilient and globally competitive ecosystem will require coordinated development across these interconnected capabilities. The rapid advancement of artificial intelligence demonstrates the importance of collaboration. Progress in AI is being driven collectively by semiconductor manufacturers, cloud-service providers, research institutions, start-ups, universities and industry. No single organisation can address the complexity of this transformation independently. Sustainable innovation depends on ecosystems in which talent, infrastructure, research and commercial expertise work together. At ZEISS, more than 180 years of scientific and technological experience have taken us from optics and precision engineering to medical technology, semiconductor manufacturing and industrial quality solutions. This journey has reinforced our belief that enduring technological leadership is built through sustained investment in research, strong partnerships, skilled talent and the ability to anticipate changing needs. For India, the AI era presents an opportunity not only to adopt advanced technologies, but also to develop them. Priorities should include strengthening research infrastructure, supporting deep-tech enterprises, expanding semiconductor capabilities, fostering industry–academia collaboration and developing future-ready talent. The countries that lead in AI will be those that create strong foundations for discovery, enable breakthrough research and empower the next generation of scientists, engineers and entrepreneurs to contribute to global technological progress," Singh added.&nbsp;Also read:<a href="https://www.wionews.com/world/four-years-3-licenses-zero-launch-why-elon-musk-s-starlink-is-still-struggling-to-crack-indian-market-explained-1791586731727"> Four years, 3 licenses, zero launch: Why is Elon Musk’s Starlink still struggling to crack Indian market? EXPLAINED</a><h3>Early days, but real momentum</h3>Anil Joshi, Managing Partner, Unicorn India Ventures, said, "India is still at an early stage of building a complete semiconductor ecosystem, but the progress over the last few years has been significant. We have built strong capabilities in chip design and are seeing encouraging momentum in fabless companies and home-grown SoCs, while semiconductor fabrication and allied infrastructure are now beginning to take shape. The opportunity is to build the entire value chain—from design and IP to fabrication, packaging, testing, equipment and materials. This will require substantial capital, deep technical expertise and, most importantly, patience. India has the talent, engineering capability and market opportunity to make this happen." Comparing the initiative with China, the Beijing factor looms large over this ambition. Under Semiconductor Mission 2.0, India has committed Rs 1,27,500 crore, dwarfed by China’s roughly $48 billion in state semiconductor support. China dominates the global assembly, testing and packaging (ATP) segment with a 30 per cent share and accounted for 42 per cent of global semiconductor equipment spending in 2024. China already controls a large share of global mature-node capacity and could soon approach half of worldwide output in that segment, the very space India’s new fabs are targeting. Therefore, India’s future foundry and ATP units will focus mainly on legacy chips sized between 28nm and 110nm, while India’s engineers make up about a fifth of the global chip design workforce, a genuine edge, though rising competition from China for design talent could erode it.&nbsp; &nbsp;

Comparing the initiative with China, the Beijing factor looms large over this ambition. Under Semiconductor Mission 2.0, India has committed Rs 1,27,500 crore, dwarfed by China’s roughly $48 billion in state semiconductor support.

India’s plan for semiconductor ambitions has garnered significant momentum over the past few years. This comes with several government incentives, new fabrication units, and growing investor interest, putting the sector firmly in the national spotlight. In terms of design and intellectual property rights, India hosts nearly 20 per cent of the world's chip-design talent. Initiatives like the Design Linked Incentive (DLI) and Chips-to-Startup (C2S) programs aim to scale up to 200+ domestic chip-design startups and foster local system design. Focusing on machines and materials, companies are also establishing manufacturing operations which can benefit from India's developing precision manufacturing ecosystem, which serves multiple sectors including aerospace, aviation, semiconductors and advanced electronics. Another pillar of India’s semiconductor strategy focuses on diversifying fabrication across display, memory, silicon, compound and logic fabs, with growing global investor confidence. Advanced packaging is prioritised for its role in boosting system-level efficiency. R&D will be driven through industry-government-academia collaboration, with joint funding for applied projects aimed at tangible outcomes. Talent development builds on roughly 400 universities currently offering chip-design education, with Semicon 2.0 upgrading curricula to help students advance from foundational chip design to systems design, strengthening India’s broader semiconductor capabilities. Meanwhile, several industry experts warned that chip manufacturing alone will not be enough. Building a resilient, globally competitive semiconductor industry, they argue, requires India to develop capabilities across the entire value chain, from design and materials to packaging, testing, and end-use applications. Beyond fabrication: The case for a full-stack ecosystem Kajal Shah, Co-founder & CEO of Dreamfly Innovations, said that India’s semiconductor journey needs to extend well past the fabrication plant. "India’s semiconductor journey must go beyond chip manufacturing to include indigenous design, materials, packaging, testing, power electronics, and embedded systems. These capabilities are essential for building advanced applications in drones, aviation, aerospace, and electric mobility. At Dreamfly Innovations, we believe that collaboration between semiconductor, battery, electronics, and aerospace companies can help India create a resilient and globally competitive deep-tech ecosystem," Shah said. Amarjeet Singh Tak, Head - Research and Microscopy Solutions at ZEISS India and Neighbouring Markets, echoed this view, arguing that India’s semiconductor vision should span “the entire value chain, including chip design, advanced manufacturing, equipment, materials, packaging, testing, software, research and end-use applications.” "Building a resilient and globally competitive ecosystem will require coordinated development across these interconnected capabilities. The rapid advancement of artificial intelligence demonstrates the importance of collaboration. Progress in AI is being driven collectively by semiconductor manufacturers, cloud-service providers, research institutions, start-ups, universities and industry. No single organisation can address the complexity of this transformation independently. Sustainable innovation depends on ecosystems in which talent, infrastructure, research and commercial expertise work together. At ZEISS, more than 180 years of scientific and technological experience have taken us from optics and precision engineering to medical technology, semiconductor manufacturing and industrial quality solutions. This journey has reinforced our belief that enduring technological leadership is built through sustained investment in research, strong partnerships, skilled talent and the ability to anticipate changing needs. For India, the AI era presents an opportunity not only to adopt advanced technologies, but also to develop them. Priorities should include strengthening research infrastructure, supporting deep-tech enterprises, expanding semiconductor capabilities, fostering industry–academia collaboration and developing future-ready talent. The countries that lead in AI will be those that create strong foundations for discovery, enable breakthrough research and empower the next generation of scientists, engineers and entrepreneurs to contribute to global technological progress," Singh added. Also read: Four years, 3 licenses, zero launch: Why is Elon Musk’s Starlink still struggling to crack Indian market? EXPLAINED Early days, but real momentum Anil Joshi, Managing Partner, Unicorn India Ventures, said, "India is still at an early stage of building a complete semiconductor ecosystem, but the progress over the last few years has been significant. We have built strong capabilities in chip design and are seeing encouraging momentum in fabless companies and home-grown SoCs, while semiconductor fabrication and allied infrastructure are now beginning to take shape. The opportunity is to build the entire value chain—from design and IP to fabrication, packaging, testing, equipment and materials. This will require substantial capital, deep technical expertise and, most importantly, patience. India has the talent, engineering capability and market opportunity to make this happen." Comparing the initiative with China, the Beijing factor looms large over this ambition. Under Semiconductor Mission 2.0, India has committed Rs 1,27,500 crore, dwarfed by China’s roughly $48 billion in state semiconductor support. China dominates the global assembly, testing and packaging (ATP) segment with a 30 per cent share and accounted for 42 per cent of global semiconductor equipment spending in 2024. China already controls a large share of global mature-node capacity and could soon approach half of worldwide output in that segment, the very space India’s new fabs are targeting. Therefore, India’s future foundry and ATP units will focus mainly on legacy chips sized between 28nm and 110nm, while India’s engineers make up about a fifth of the global chip design workforce, a genuine edge, though rising competition from China for design talent could erode it.

Comparing the initiative with China, the Beijing factor looms large over this ambition. Under Semiconductor Mission 2.0, India has committed Rs 1,27,500 crore, dwarfed by China’s roughly $48 billion in state semiconductor support.

Can India build complete semiconductor ecosystem beyond chip manufacturing? Experts weigh in

The Union Cabinet on Wednesday (July 15) approved the second phase of the India Semiconductor Mission with an outlay of ₹1.27 lakh crore, as the government steps up efforts to position India as a global electronics manufacturing hub.&nbsp;Announcing the decision, Union IT Minister Ashwini Vaishnaw said, "The Cabinet has approved ISM 2.0 with a total outlay of ₹1.27 lakh crore."&nbsp;The Semicon 2.0 programme builds on the semiconductor initiative launched five years ago to reduce import dependence and attract investments in one of the world's most strategic industries.&nbsp;During the first phase of the India Semiconductor Mission, the government had allocated ₹76,000 crore. So far, it has cleared 12 projects under the programme, drawing investments worth around ₹1.64 lakh crore.&nbsp;A large share of the investment has come from Tata Electronics and its semiconductor business.&nbsp;Also Read: <a href="https://www.wionews.com/india-news/ahmedabad-air-india-crash-probe-draft-report-likely-by-october-aaib-opposes-release-of-cockpit-recordings-1784120546766">Ahmedabad Air India crash probe draft report likely by October, AAIB opposes release of cockpit recordings</a>&nbsp;<h2>Cabinet clears multiple projects worth ₹2.19 trillion</h2>Along with Semicon 2.0, the Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS) with an allocation of ₹62,500 crore, making it one of the government's key manufacturing initiatives.&nbsp;Vaishnaw also announced that the Cabinet had approved the National Investment Policy for Urea 2026, saying the policy is aimed at making India self-reliant in urea production. He clarified that the approval is a policy decision and does not involve any financial allocation in the Cabinet decisions table.&nbsp;The Cabinet also cleared two railway infrastructure projects. It approved the doubling of the Paradeep to Haridaspur railway line at a cost of ₹2,542 crore. It also approved the fourth railway line between Dangoaposi and Rajkharsawan with an investment of ₹1,365 crore.&nbsp;"Seven major decisions were taken today. The first two decisions relate to a new approach to infrastructure development in Varanasi (Kashi). The third and fourth decisions are related to the approval of Semiconductor Mission 2.0 (Semicon 2.0). The fourth decision is the approval of the Mobile Phone Manufacturing Scheme. The fifth decision is aimed at making India self-reliant in urea production. For this, the National Investment Policy for Urea has been approved," he said.

The Union Cabinet approved a ₹1.27 trillion Semiconductor Mission 2.0 along with a ₹62,500 crore Mobile Phone Manufacturing Scheme and other key policy and infrastructure measures to strengthen India's manufacturing ecosystem.

The Union Cabinet on Wednesday (July 15) approved the second phase of the India Semiconductor Mission with an outlay of ₹1.27 lakh crore, as the government steps up efforts to position India as a global electronics manufacturing hub. Announcing the decision, Union IT Minister Ashwini Vaishnaw said, "The Cabinet has approved ISM 2.0 with a total outlay of ₹1.27 lakh crore." The Semicon 2.0 programme builds on the semiconductor initiative launched five years ago to reduce import dependence and attract investments in one of the world's most strategic industries. During the first phase of the India Semiconductor Mission, the government had allocated ₹76,000 crore. So far, it has cleared 12 projects under the programme, drawing investments worth around ₹1.64 lakh crore. A large share of the investment has come from Tata Electronics and its semiconductor business. Also Read: Ahmedabad Air India crash probe draft report likely by October, AAIB opposes release of cockpit recordings Cabinet clears multiple projects worth ₹2.19 trillion Along with Semicon 2.0, the Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS) with an allocation of ₹62,500 crore, making it one of the government's key manufacturing initiatives. Vaishnaw also announced that the Cabinet had approved the National Investment Policy for Urea 2026, saying the policy is aimed at making India self-reliant in urea production. He clarified that the approval is a policy decision and does not involve any financial allocation in the Cabinet decisions table. The Cabinet also cleared two railway infrastructure projects. It approved the doubling of the Paradeep to Haridaspur railway line at a cost of ₹2,542 crore. It also approved the fourth railway line between Dangoaposi and Rajkharsawan with an investment of ₹1,365 crore. "Seven major decisions were taken today. The first two decisions relate to a new approach to infrastructure development in Varanasi (Kashi). The third and fourth decisions are related to the approval of Semiconductor Mission 2.0 (Semicon 2.0). The fourth decision is the approval of the Mobile Phone Manufacturing Scheme. The fifth decision is aimed at making India self-reliant in urea production. For this, the National Investment Policy for Urea has been approved," he said.

The Union Cabinet approved a ₹1.27 trillion Semiconductor Mission 2.0 along with a ₹62,500 crore Mobile Phone Manufacturing Scheme and other key policy and infrastructure measures to strengthen India's manufacturing ecosystem.

Cabinet approves ₹1.27 trillion for India Semiconductor Mission 2.0 to boost chip manufacturing

Prime Minister Narendra Modi on Saturday (Feb 21) launched the India Chip Private Limited, a pioneering joint venture between HCL and Foxconn for domestic semiconductor production. Addressing the groundbreaking ceremony of the OSAT (Outsourced Semiconductor Assembly and Test) facility in the northern city of Jewar in Uttar Pradesh via video conferencing, Modi stressed India’s push for chipmaking self-reliance.“India must become self-reliant in chip manufacturing... For this... we need to build a semiconductor ecosystem in India,” Modi said, adding that the nation is working simultaneously on both software and hardware aspects of technology.“It is a matter of pride for all of us that Uttar Pradesh is also set to become a major centre in India’s semiconductor ecosystem. This new HCL and Foxconn factory... will further strengthen UP’s new identity as a technology powerhouse,” he said.<a href="https://www.wionews.com/videos/western-dual-use-chips-reportedly-reached-russia-via-north-korea-hong-kong-1771558191370/embed">https://www.wionews.com/videos/western-dual-use-chips-reportedly-reached-russia-via-north-korea-hong-kong-1771558191370/embed</a><h2>A step towards technological self-reliance</h2>This is Uttar Pradesh’s first OSAT facility and India’s sixth approved semiconductor project.The joint venture between Indian IT giant HCL Technologies and Taiwanese electronics manufacturer Foxconn is located in the Yamuna Expressway Industrial Development Authority (YEIDA) area in Uttar Pradesh, near the upcoming Noida International Airport.Spanning approximately 48 acres, the facility has an investment of more than Rs 3,700 crore.Foxconn holds a 40 per cent equity stake, having invested $37.2 million (around Rs 312 crore), with possible additional investment of up to Rs 424 crore.The project is being developed under the modified scheme for semiconductor ATMP, or Assembly, Testing, Marking and Packaging.Also read: <a href="https://www.wionews.com/world/not-about-china-why-india-joining-pax-silica-alliance-on-rare-earths-supply-chain-chip-making-and-ai-is-a-big-deal-1771580224467">Not about China? Why India joining Pax Silica alliance on rare earths supply chain, chip making and AI is a big deal</a><h2>What will the OSAT facility make?</h2>The facility aims to enhance high-end manufacturing capabilities in sectors such as mobile phones, tablets, laptops and automotive electronics.It will focus on display driver integrated circuits for smartphones, laptops, automotive applications and other consumer electronics, according to reports.The facility is expected to generate thousands of direct and indirect jobs for engineers, technicians and skilled professionals, and to catalyse growth in ancillary industries, design houses, R&amp;D centres and a start-up ecosystem around semiconductors, said a release from the government.Also read: <a href="https://www.wionews.com/opinions/from-chips-to-chatbots-how-india-is-chasing-ai-billions-1771413723048">From chips to chatbots: How India is chasing AI billions</a><h2>India’s growth in chip ecosystem</h2>The new facility is a significant step in strengthening India’s self-reliance and its presence in the global chip ecosystem.It will help India reduce import dependence, build resilient supply chains and promote innovation, skill development and technology transfer.The new facility aligns with government initiatives such as Make in India and Digital India, as well as Atmanirbhar Bharat, or a self-reliant India.

Prime Minister Modi attended the groundbreaking ceremony of a new semiconductor facility in Uttar Pradesh. The HCL and Foxconn joint venture boosts India’s chip manufacturing, self-reliance, jobs and high-end electronics production.

Prime Minister Narendra Modi on Saturday (Feb 21) launched the India Chip Private Limited, a pioneering joint venture between HCL and Foxconn for domestic semiconductor production. Addressing the groundbreaking ceremony of the OSAT (Outsourced Semiconductor Assembly and Test) facility in the northern city of Jewar in Uttar Pradesh via video conferencing, Modi stressed India’s push for chipmaking self-reliance. “India must become self-reliant in chip manufacturing... For this... we need to build a semiconductor ecosystem in India,” Modi said, adding that the nation is working simultaneously on both software and hardware aspects of technology. “It is a matter of pride for all of us that Uttar Pradesh is also set to become a major centre in India’s semiconductor ecosystem. This new HCL and Foxconn factory... will further strengthen UP’s new identity as a technology powerhouse,” he said. https://www.wionews.com/videos/western-dual-use-chips-reportedly-reached-russia-via-north-korea-hong-kong-1771558191370/embed A step towards technological self-reliance This is Uttar Pradesh’s first OSAT facility and India’s sixth approved semiconductor project. The joint venture between Indian IT giant HCL Technologies and Taiwanese electronics manufacturer Foxconn is located in the Yamuna Expressway Industrial Development Authority (YEIDA) area in Uttar Pradesh, near the upcoming Noida International Airport. Spanning approximately 48 acres, the facility has an investment of more than Rs 3,700 crore. Foxconn holds a 40 per cent equity stake, having invested $37.2 million (around Rs 312 crore), with possible additional investment of up to Rs 424 crore. The project is being developed under the modified scheme for semiconductor ATMP, or Assembly, Testing, Marking and Packaging. Also read: Not about China? Why India joining Pax Silica alliance on rare earths supply chain, chip making and AI is a big deal What will the OSAT facility make? The facility aims to enhance high-end manufacturing capabilities in sectors such as mobile phones, tablets, laptops and automotive electronics. It will focus on display driver integrated circuits for smartphones, laptops, automotive applications and other consumer electronics, according to reports. The facility is expected to generate thousands of direct and indirect jobs for engineers, technicians and skilled professionals, and to catalyse growth in ancillary industries, design houses, R&D centres and a start-up ecosystem around semiconductors, said a release from the government. Also read: From chips to chatbots: How India is chasing AI billions India’s growth in chip ecosystem The new facility is a significant step in strengthening India’s self-reliance and its presence in the global chip ecosystem. It will help India reduce import dependence, build resilient supply chains and promote innovation, skill development and technology transfer. The new facility aligns with government initiatives such as Make in India and Digital India, as well as Atmanirbhar Bharat, or a self-reliant India.

Prime Minister Modi attended the groundbreaking ceremony of a new semiconductor facility in Uttar Pradesh. The HCL and Foxconn joint venture boosts India’s chip manufacturing, self-reliance, jobs and high-end electronics production. Here is what you should know

India Chip Private Limited launched by PM Modi: Why is it important and what will it make?

india-semiconductor

India Semiconductor, News on India Semiconductor, stories on India Semiconductor, articles on India Semiconductor, India Semiconductor stories at Wion, India Semiconductor news, India Semiconductor latest news

india semiconductor

Can India build complete semiconductor ecosystem beyond chip manufacturing? Experts weigh in

Cabinet approves ₹1.27 lakh crore Semicon 2.0 to boost chip manufacturing

India Chip Private Limited launched by PM Modi: Why is it important?