Beyond the Multi-Billion Dollar Fabs
For the past few years, headlines have been dominated by multi-billion dollar announcements for semiconductor fabrication plants, or fabs. While these are critical, India's strategy, highlighted at the upcoming fifth edition of SEMICON India in New Delhi,
is maturing. The theme, "Silicon to Systems: Building the Ecosystem," says it all. The government and industry leaders are now focused on a holistic approach. This means developing a robust value chain that includes not just manufacturing, but also the crucial upstream and downstream components that make a semiconductor industry truly self-reliant and globally competitive. The event, to be inaugurated by Prime Minister Narendra Modi, is set against the backdrop of real progress, with several approved projects already commencing commercial production. This shift demonstrates a move from building credibility to showcasing tangible capability.
A Renewed Push on Design and R&D
India already possesses a formidable talent pool in semiconductor design, a strength the government is keen to build upon. The recently approved Semicon 2.0 programme, with a massive outlay of ₹1,27,500 crore, identifies chip design as a core pillar. The goal is to move up the value chain by developing homegrown intellectual property (IP) and chip designs. The Design Linked Incentive (DLI) scheme has already approved financial support for 24 startups, and over 100 startups have been given access to industry-standard design tools. SEMICON India 2026 will emphasize this push, alongside a focus on research and development in next-generation areas like silicon photonics and power semiconductors, ensuring the country is not just manufacturing current technology but also innovating for the future.
The Crucial Role of Packaging and Materials
A chip isn't complete when it comes off the wafer. The Assembly, Testing, Marking, and Packaging (ATMP) stage is a vital, high-value part of the process. Several of the 12 projects approved under the first phase of the India Semiconductor Mission (ISM) are ATMP facilities, including those by major players like the Tata Group and CG Power. This segment, sometimes called Outsourced Semiconductor Assembly and Test (OSAT), is a key focus of Semicon 2.0. Furthermore, a sustainable ecosystem cannot rely on imported equipment and materials. The new policy framework explicitly incentivizes companies involved in manufacturing the complex machinery, specialty chemicals, and gases required for chip production. This will help build supply chain resilience and develop a precision manufacturing industry within India.
Building the Workforce of Tomorrow
A world-class ecosystem is impossible without a world-class workforce. While India's strength in design engineering is well-known, officials acknowledge that the manufacturing workforce needs significant strengthening. Talent development is another one of the six strategic pillars of the Semicon 2.0 programme. SEMICON India 2026 will feature a dedicated Workforce Development Pavilion and sessions focused on skilling, industry-academia collaboration, and even a national hackathon to engage students. The government has a stated goal of developing a pool of 85,000 trained engineers by 2027, and this event will serve as a platform to connect talent with the opportunities rapidly emerging across the country.
A Global Stage for 'Made in India' Chips
With over 500 exhibitors, including 294 international companies from more than 40 countries, SEMICON India 2026 is more than a conference; it's a global marketplace. Six country-specific pavilions will be part of the event. For the first time, a "Sand to Silicon to Systems" Value Chain Experience will be introduced, offering an immersive journey through India's expanding capabilities. This showcase, combined with a high-level roundtable between the Prime Minister and global semiconductor CEOs, is designed to attract further investment and integrate Indian companies into the global supply chain. As domestic demand for chips is expected to double from $100 billion to $200 billion, the event aims to prove that India is ready to not just participate in, but become integral to, the world's semiconductor future.
