India wants to become a major semiconductor hub at a time when chip supply chains are facing disruptions. Prime Minister Narendra Modi has urged international chipmakers and equipment suppliers to increase their operations in the country, saying the country is preparing to take on a larger role in semiconductor manufacturing.
Speaking at SEMICON India 2026 in New Delhi on Thursday (September 17), he said India’s ability to build semiconductors has become more important as countries face disruptions and restrictions in international supply networks.
“When a country like ours succeeds in a critical industry, it strengthens the global supply chain – a fact that has become even more significant at a time when supply chains are being weaponised. We should view these transformations taking place in India through this broader perspective,” Modi said.
He also said the semiconductor sector needs new manufacturing locations that can offer reliable production capacity.
“The semiconductor industry is facing numerous challenges. Amidst these challenges, the world is in dire need of new and reliable manufacturing hubs, and I say this with full responsibility. I assure you that India is continuously preparing itself for this role…India is also emphasising the strengthening of supply chains and has implemented several reforms to achieve this,” he said.
The fifth edition of SEMICON India is being held at Yashobhoomi in New Delhi from September 17 to 19. The event has brought together more than 600 exhibitors, including 300 international companies, with participants from more than 40 countries.
Pitch for advanced chip technologies
Modi said India’s semiconductor programme now includes areas such as compound semiconductors and silicon photonics. He said the groundwork needed for these technologies has been put in place.
“From the manufacturing of various compound semiconductors to integrating silicon photonics into the ecosystem, all of this is essential for AI-enabling infrastructure, and we must move forward together in this direction. The necessary foundation for this has been laid,” he said.
The prime minister also addressed equipment and component manufacturers attending the event. “I urge the leaders of equipment companies present here not to miss these opportunities,” Modi said.
India has been building policies covering chip design, fabrication, assembly, testing, packaging, equipment and materials. The Union cabinet approved Semicon 2.0 in July with a budget of Rs 1.275 lakh crore. The programme includes support for semiconductor design, manufacturing, equipment, materials, Indian intellectual property and supply chains.
The government had approved 12 semiconductor projects under the first phase of its programme by July. Three projects had begun rolling out chips, according to the Ministry of Electronics and Information Technology.
India sets $13.5 billion target
Modi said India has entered the second phase of its semiconductor programme, with a target of $13.5 billion. The new phase comes with India moving towards commercial chip production and a larger domestic supply network.
The announcements have added to the scale of the programme. US semiconductor equipment maker Applied Materials announced plans to invest $5 billion in India over the next decade. The company said the investment will support research, supply-chain development and workforce training.
India has also begun commercial production at semiconductor packaging facilities. A government update in April said commercial production had begun at two plants, with two more expected to start production during 2026. The same update listed investments of about Rs 1.6 lakh crore across 10 approved projects at that stage.
Over 70,000 engineers trained
Modi also highlighted the workforce needed to support the industry. The government has set a target of training 1 lakh engineering students for semiconductor-related jobs. More than 70,000 students have been trained, according to the prime minister.
“Our government has set a target to train 1 lakh engineering students for the semiconductor industry, and we have trained over 70,000 of them… I call upon the youth – whether they are conducting research in India or abroad – to come forward and participate in the development of advanced technology here,” he said.
The event also comes after the BRICS Summit in New Delhi, where India secured consensus on the New Delhi Declaration. Modi referred to the declaration while speaking about India’s role in international forums.
“India successfully concluded the BRICS Summit. The adoption of the New Delhi Declaration with everyone’s support is one more piece of evidence of India’s global credibility. And SEMICON India being held amid such major achievements is another significant milestone,” Modi said.
SEMICON India 2026 is being held under the theme ‘Silicon to Systems: Building the Ecosystem’. The event covers chip manufacturing, packaging, equipment, materials, electronics systems, research and workforce development, giving companies participating in different parts of the semiconductor supply chain a platform to explore investments and partnerships.
