India's Chip Dreams Soar! PM Modi Unveils Massive Semicon Push

Prime Minister Narendra Modi recently addressed the Semicon India 2026 event, positioning India as a "new and trustworthy location" for electronics manufacturing. He urged global chipmakers to consider the nation's immense potential, particularly in freeing electronics from the ongoing "weaponisation" of global supply chains.

Modi highlighted that building a semiconductor ecosystem is a decades-long effort, and India, with international cooperation, has made significant strides simultaneously across chip design, manufacturing, equipment, materials, and testing capabilities. This ambitious push comes shortly after the notification of the India Semiconductor Mission's second phase, which boasts an outlay of ₹1.27 lakh crore, signaling a robust commitment to the sector.

IT Minister Ashwini Vaishnaw elaborated on the government's plans, including training one lakh people to create a global talent pool ready for the new factories. The government also aims to support at least 200 startups and companies specializing in chip design under Semicon 2.0. Vaishnaw emphasized that Indian chip design firms already have a strong global presence, requiring less in-house manufacturing.

The event saw a strong show of confidence from global industry leaders.

SEMI's CEO Ajit Manocha projected the semiconductor industry to reach $1.3 trillion this year and $2 trillion by 2030. Companies like Applied Materials pledged a $5 billion investment over five years to expand its R&D center and supply chain.

Micron CEO Sanjay Mehrotra noted that commercial production at Sanand has already begun, with capacity exceeding India's entire laptop memory requirement. Infineon CEO Jochen Hanebeck praised India as a "market of tremendous importance" and lauded the rapid progress in the Indian ecosystem, pointing to a 28% increase in their hiring in India.

Merck's electronics CEO Benjamin Hein declared India is evolving from a major chip consumer and design hub into a "full-stack global semiconductor powerhouse." Lam Research COO Sesha Varadarajan announced a ₹10,000 crore investment to establish their first silicon component manufacturing facility in the country, increasing partnerships with Indian suppliers. Wayne Allan of Dutch firm ASML also underscored India's growing global importance as its chip ecosystem matures.

Deloitte's report further estimates India's semiconductor market could hit $300 billion by 2035.

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