Modi Unleashes India's $13.5 Billion Chip Ambition at SEMICON India 2026
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Prime Minister Narendra Modi today inaugurated SEMICON India 2026 in New Delhi, kicking off the three-day event by unveiling the ambitious second phase of India's Semiconductor Mission with an expanded outlay of $13.5 billion. This significant financial push, up from $8 billion in the initial phase, aims to transform India into a global chip manufacturing powerhouse and secure its position in a critical, technologically advanced sector. Modi's address at the Yashobhoomi Convention Centre highlighted India's readiness to become a reliable alternative in an increasingly complex global supply chain for semiconductors. The move comes as nations worldwide scramble to reduce dependence on concentrated chip manufacturing hubs, a vulnerability exposed by ongoing geopolitical tensions and the phenomenon of 'weaponized supply chains'. India, currently importing 90-95% of its semiconductor needs, is strategically targeting a domestic market demand projected to hit $100-110 billion by 2030 and potentially $200 billion by 2035. The expanded Semicon 2.0 framework, approved by the Union Cabinet in July 2026, broadens its scope across six pillars: chip design, fabrication (fabs), advanced packaging (ATMP/OSAT), semiconductor equipment, specialty materials, research and development (R&D), and aggressive talent development to produce 100,000 semiconductor engineers. Looking ahead, the mission is already seeing tangible progress with 12 chip-making projects approved, and Modi remotely inaugurating two new production sites, bringing India's commercial semiconductor projects to five. Major global players like Applied Materials, Lam Research, and Micron Technology have announced substantial investments and commenced commercial production in India, alongside partnerships involving Tata Electronics and Dutch firm ASML for front-end fabs. The government also plans to simplify investment rules and foster collaboration between international companies and Indian startups, signaling a clear path for India to not just make chips, but to innovate and lead in the semiconductor ecosystem, from 'Silicon to Systems'.