India accelerates semiconductor ambitions with more projects and an expanded value chain

India’s push into semiconductor manufacturing is entering a new phase with five to six projects expected to be operational by 2026, as the government broadens support to include design, packaging, and niche areas, aiming to transform India into a global tech hub.

India’s semiconductor push is moving into a more visible commercial phase, with the government expecting five to six projects to be operating by the end of 2026, according to S Krishnan, secretary at the Ministry of Electronics and Information Technology. Speaking at a briefing to announce Semicon India 2026, Krishnan said three large projects approved under the first phase of the India Semiconductor Mission have already begun commercial production, and that further inaugurations could follow before year-end. He said the point of these early plant start-ups is to show that the programme is delivering tangible results on the ground and to reinforce India’s standing as a location for global chipmakers.

The next phase of the policy, approved by the Union Cabinet as ISM 2.0, is meant to widen support well beyond fabrication. According to the government outline cited by industry publication India Briefing, the expanded scheme covers chip design, wafer manufacturing, advanced packaging, equipment, materials, research and development, and talent development. It also extends the strategy into niche but strategically important areas such as silicon photonics and power semiconductors, reflecting a move from basic capacity-building towards a broader semiconductor value chain.

Talent is likely to be one of the most important constraints, and Krishnan argued that India will need a larger manufacturing workforce if it is to turn its design strength into a deeper industrial base. He said the country already has a substantial presence in chip design, but the manufacturing side remains relatively thin. The ministry’s view is that training workers for semiconductor plants would not only meet domestic requirements but could also make India a source of skilled labour for other markets. Industry trackers say there were 13 approved semiconductor projects operational or under development as of mid-May 2026, underlining how quickly the pipeline has grown.

That expansion will be showcased at Semicon India 2026, which the official event website says will run from September 17 to 19 at Yashobhoomi in New Delhi, with Prime Minister Narendra Modi due to open the conference on September 17. Krishnan said the event is expected to draw more than 240 international companies, over 150 speakers, delegations from more than 40 countries and six country-specific pavilions. He added that domestic semiconductor demand could double to about $200 billion from $100 billion, a forecast that helps explain why suppliers, manufacturers and investors are increasingly treating India as a market worth a long-term bet.

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