Modi Pitches India as Trusted Chip Hub at Semicon India 2026
At Semicon India 2026, PM Modi said India is positioning itself as a trusted destination for chip manufacturing, with 12 projects approved and ISM 2.0 outlay at $13.5 billion.
Prime Minister Narendra Modi on Thursday inaugurated SEMICON India 2026, where he projected the country as a dependable base for global semiconductor manufacturing and said the government would back the industry with supportive policies and regulatory frameworks.
Speaking at the event, Modi said the domestic semiconductor ecosystem is growing quickly and creating fresh avenues for innovation, investment and employment. A growing number of countries are looking for new and reliable locations to make chips, he said, and India is equipping itself to meet that demand.
So far, 12 chip-making projects have received approval, the Prime Minister said, adding that more are expected in the coming phase. He also said the India Semiconductor Mission 2.0 has raised its outlay to $13.5 billion, up from $8 billion in the first phase.
"Be it policies, regulatory framework...whatever is needed for you [manufacturers] to succeed, government is taking all steps and efforts to ensure that," he said, addressing industry participants.
Modi linked the push to broader economic momentum, pointing to first-quarter GDP growth and a rating upgrade for India by Japanese agency JCRA as signs of rising global confidence in the economy.
India is working to build a complete semiconductor ecosystem that extends beyond chip design and assembly into fabrication, advanced packaging, equipment, materials, research and talent development. The effort is aimed at strengthening electronics manufacturing and lowering reliance on global supply chains.
The government is betting that a worldwide move to diversify chip supply chains away from concentrated production centres will help India emerge as a major hub. Backed by billions of dollars in incentives, New Delhi is reaching out to global manufacturers and drawing on its engineering workforce, large consumer market and strategic location to build a full-stack industry covering design, fabrication, packaging and testing.
On the same day, Applied Materials announced $5 billion in investments under its Vision 2035 plan to integrate India's semiconductor ecosystem into the global value chain.