India aims to be globally reliable semiconductor manufacturing hub: PM Narendra Modi
Amid growing global supply chain disruptions, India is preparing itself to become a reliable manufacturing hub for the global semiconductor industry by expanding its policy support and infrastructure, according to Prime Minister Narendra Modi.
Speaking at the inauguration of the Semicon India 2026 event on Thursday, the Prime Minister highlighted the commencement of commercial production at two additional packaging facilities in Mohali and Surat, marking further progress in the nation’s domestic manufacturing ecosystem.
“Amidst these challenges, the world urgently needs new and reliable, and I say this with great responsibility, new and reliable locations for manufacturing. And I assure you, India is continuously preparing itself for this,” said Modi.
The Prime Minister said that the Semicon 2.0 programme has an expanded capital outlay of $13.5 billion from the approximately $8 billion earmarked during the first phase of the India Semiconductor Mission (ISM).
Under Semicon 2.0, international companies can now directly collaborate with domestic startups, Indian chip design firms, and Overseas Citizen of India (OCI)-owned entities.
The government is prioritising the growth of fabless companies, domestic intellectual property creation, compound semiconductor manufacturing, silicon photonics, and AI-enabled infrastructure to build a comprehensive ecosystem, according to Modi.
Supply chain reforms have also been executed to attract global equipment suppliers, chemical manufacturers, industrial gas providers, and raw material companies, expanding beyond the 12 projects already approved by the government, he said.
Highlighting the nation’s technical talent pool, the Prime Minister noted that over 70,000 engineering students have already received specialised training for the semiconductor industry, with the government now planning to train 1 lakh students.
Addressing the technical challenges facing the sector, Modi pointed out that surging demand for artificial intelligence has expanded focus from transistor density to packaging, thermal management, and power delivery.
“Over the past two years, global semiconductor market growth has exceeded 20%. A major driver behind this growth is the demand generated by AI. This means if you are working on AI today, the challenges are not just about what is inside the chip, but also about what is happening around it,” he added during his address.
To meet the escalating power and energy security demands of AI data centers, India is heavily expanding its domestic electricity grid and clean energy infrastructure, according to him.
Installed solar power capacity in the country has scaled from roughly 2 gigawatts to over 160 gigawatts over the past 10 years, alongside transmission network expansions, nuclear power sector deregulation, and the development of small modular reactors to ensure uninterrupted power supply for high-tech manufacturing plants, the Prime Minister highlighted.
