New India: Prime Minister Narendra Modi will inaugurate SEMICON India 2026 at Yashobhoomi in Dwarka on September 17. Representatives from leading global semiconductor companies, investors, policymakers, and technical experts will participate in this three-day event. The conference is taking place at a time when India is focusing on moving beyond electronics manufacturing to develop chip fabrication and the entire associated industrial ecosystem.
The theme for this year’s edition is “Silicon to Systems: Building the Ecosystem,” reflecting India’s effort to move beyond electronics assembly and develop capabilities across the semiconductor value chain.
Electronics Manufacturing Sets the Stage for Chipmaking
India’s semiconductor ambitions have gained momentum alongside the rapid expansion of its electronics manufacturing sector over the past decade. According to government data, electronics production in the country rose from approximately ₹1.9 lakh crore in 2014-15 to ₹13.11 lakh crore in 2025-26. During the same period, electronics exports increased from around ₹38,000 crore to reach ₹4.24 lakh crore.
There has also been significant expansion in mobile phone manufacturing. Production has risen from approximately ₹18,000 crore to ₹6.27 lakh crore, while mobile phone exports have increased from around ₹1,500 crore to reach ₹2.59 lakh crore. This expansion has given India the capacity for large-scale electronics manufacturing. Now, efforts are being made to leverage this very industrial base in the semiconductor sector.
Government Steps Up Semiconductor Investment
India launched the Semicon India programme in 2021, with an outlay of ₹76,000 crore. The objective of the programme was not merely to set up chip factories, but to simultaneously develop sectors such as design, fabrication, packaging, testing, equipment, and materials.
In July 2026, the government approved Semicon 2.0, for which a provision of ₹1.27 lakh crore has been made. According to the government, 12 semiconductor projects across six states have received approval. These projects entail investment commitments exceeding ₹1.64 lakh crore. These include projects related to silicon and compound semiconductor fabrication, display manufacturing, and advanced packaging.
Developing chip design capabilities is also a key part of India’s strategy in the semiconductor sector. Under the ‘Chips to Startup’ program, EDA tools have been made available to 320 academic institutions, and over 68,000 students have been trained. Additionally, startups and educational institutions are being provided access to expensive chip-design tools and manufacturing-related facilities through shared facilities like the ChipIN Centre.
India Turns Focus to Global Semiconductor Supply Chains
India’s strategy is no longer limited to developing chip manufacturing capabilities within the country; increasing its participation in the global semiconductor supply chain is also a crucial part of it. India’s joining of the Pax Silica alliance in 2026 is linked to this broader strategy. The alliance aims to make critical supply chains related to silicon, semiconductors, and AI more secure and diversified.
SEMICON India 2026 is expected to feature over 600 exhibitors and 300 international companies. In addition to pavilions representing six countries and 12 states, the event will host programs dedicated to startups, students, skill development, and women talent.
The next challenge for India is not merely about setting up semiconductor factories. The real test will be how quickly the country can build an industrial ecosystem—spanning everything from chip design to manufacturing, packaging, testing, and global supply chains—that remains competitive and sustainable in the long run.
(PIB)
