More Than Just a Conference
Set to be inaugurated by Prime Minister Narendra Modi in New Delhi, the fifth edition of SEMICON India is more than an industry event; it's a statement. This year's theme, "Silicon to Systems – Building the Ecosystem," reflects a crucial shift from merely
attracting investment to creating a fully integrated value chain. With participation from over 240 international companies, delegations from 40 countries, and a 30% expansion from the previous year, the event showcases India’s newfound credibility. For the first time, a "Value Chain Experience" will guide visitors through the entire process, from sand to silicon to complete systems, demonstrating the nation’s growing capabilities in design, manufacturing, and assembly.
The Government's Multi-Billion Dollar Push
The foundation of this rapid progress is the India Semiconductor Mission (ISM). After the initial phase, Semicon 1.0, allocated INR 76,000 crore, the government has doubled down. In July 2026, the Union Cabinet approved Semicon 2.0, a massive follow-up program with an outlay of INR 1.275 trillion (around US$13.2 billion). This new phase expands support beyond just manufacturing to cover the entire ecosystem, including chip design, equipment, materials, R&D, and talent development. So far, the mission has approved 12 semiconductor projects with a total investment commitment of over INR 1.64 lakh crore. This clear, long-term policy support has been crucial in assuring global players of India's commitment.
From Global Giants to Local Champions
The policy push is translating into tangible projects. US-based Micron Technology’s assembly and test facility in Sanand, Gujarat, is already a cornerstone, expected to produce tens of millions of chips in 2026. The Gujarat government recently approved 12-hour shifts at the plant to support its continuous production cycle, a sign of administrative flexibility to meet the industry's unique demands. Meanwhile, the Tata Group is making enormous strides. Tata Electronics is building India's first commercial 300mm fabrication plant in Dholera, Gujarat, with a planned investment of US$11 billion and a technology partnership with Taiwan's PSMC. This fab will focus on 28-nanometer and other mature nodes, which are critical for the automotive, industrial, and IoT sectors. The group is also setting up a separate INR 27,000 crore assembly and testing (OSAT) facility in Assam, creating a more complete domestic value chain.
Building an Ecosystem, Not Just Factories
Officials and industry leaders understand that success isn't just about multi-billion dollar fabrication plants. A self-sustaining ecosystem requires a strong base in design, a skilled workforce, and a local supply chain. India has a natural advantage in chip design, with a large pool of engineering talent. Initiatives like the Design Linked Incentive (DLI) scheme are nurturing this strength, supporting startups and R&D. However, a significant gap remains in manufacturing-specific skills. Semicon 2.0 and various partnerships aim to address this by focusing on talent development. The goal is to move beyond being a design powerhouse to having the manufacturing depth needed for full value-chain leadership.
The Long and Winding Road
Despite the palpable excitement, the road ahead is challenging. The semiconductor industry is incredibly capital-intensive, requiring billions in investment and facing fierce competition from established hubs in Taiwan, South Korea, and China. Establishing a domestic supply chain for critical inputs like high-purity chemicals, specialty gases, and silicon wafers is a monumental task, as India currently imports over 90% of these materials. Furthermore, semiconductor manufacturing has immense infrastructure demands, including uninterrupted power and vast quantities of ultrapure water, which remain a hurdle. While three of the initial projects have started commercial production, and another two to three are expected by the end of 2026, scaling up to meet India's projected $200 billion domestic demand will require sustained effort and overcoming these significant obstacles.
