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India’s semiconductor push: Govt rolls out ambitious plans to become global chip hub

The government launched the ‘Semicon India Programme’ to cover everything from design and fabrication to assembly, testing, and packaging

  • By ICN Bureau | January 03, 2026
India is accelerating towards its goal of becoming a global hub for semiconductor design and manufacturing, combining cutting-edge technology with homegrown talent.
 
Yes, in line with PM Narendra Modi's vision of Atmanirbhar Bharat and Make in India, Make for the World, the government has unveiled a sweeping strategy to develop a full-fledged semiconductor ecosystem in India.
 
Recognizing the foundational role of semiconductors in the economy, the government launched the ‘Semicon India Programme’ to cover everything from design and fabrication to assembly, testing, and packaging.
 
“Under Semicon India Programme, ten (10) units have been approved with an investment of Rs 1.6 Lakh Cr which include Silicon fab, Silicon Carbide fab, advanced packaging, memory packaging, etc. These would cater to chip requirements of sectors such as consumer appliances, industrial electronics, automobiles, telecommunications, aerospace, and power electronics etc,” officials said.
 
Several of these approved proposals will rely on indigenous technology for assembly, testing, and packaging of semiconductor chips, signaling a major push for domestic innovation.
 
In addition, the government has launched Production Linked Incentive (PLI) schemes to boost large-scale electronics manufacturing. The PLI for mobile phones and certain specified components has already attracted Rs 14,065 Cr in investment up to October 2025, while the PLI for IT hardware, covering laptops, tablets, servers, and ultra-small form factor devices, has drawn Rs 846 Cr.
 
These efforts are paying off: electronics manufacturing has grown almost six times in the last 11 years, jumping from Rs 1.9 lakh Cr in 2014-15 to Rs 11.32 lakh Cr in 2024-25. Meanwhile, electronics exports have surged eight times, from Rs 38 thousand Cr to Rs 3.26 lakh Cr over the same period, making electronics India’s third-largest export category.
 
To leverage India’s strengths in chip design, the government has launched the Design Linked Incentive (DLI) Scheme, supporting 23 companies (24 designs) for products in satellite communication, drones, surveillance cameras, IoT devices, AI devices, telecom equipment, smart meters, and more.
 
As part of infrastructure support, free design tool (EDA) access has been provided to 94 startups, enabling 47 lakh hours of design tool usage.
 
In fact, the government has rolled out a comprehensive approach to cultivate homegrown semiconductor talent.
 
Under the Chips to Start-up (C2S) Programme, India’s young engineers gain access to cutting-edge design tools. Using these, designers from more than 46 universities have already designed and fabricated 56 chips at the Semiconductor Laboratory (SCL), Mohali. So far, training in chip design has reached over 67,000 students and researchers.
 
Meanwhile, the All India Council for Technical Education (AICTE) has launched specialized courses including: BTech in Electronics Engineering (VLSI Design) and Diploma in Integrated Circuit (IC) manufacturing.
 
A Skilled Manpower Advanced Research and Training (SMART) Lab in NIELIT Calicut aims to train 1 lakh engineers nationwide, with over 62,000 already trained. Meanwhile, the Indian Institute of Science (ISM) has partnered with Lam Research to train talent in nanofabrication and process-engineering, targeting 60,000 skilled professionals over the next decade.

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