Technology

India Launches Semicon 2.0 with Bigger Outlay and Commercial Focus

2026-09-18 - ABikram Mondal

PM Modi Opens Semicon India 2026 in Delhi

Prime Minister Narendra Modi inaugurated the fifth edition of SEMICON India 2026 at Yashobhoomi in New Delhi on 17 September. The three day event runs until 19 September and draws more than 600 companies from 52 countries. Organisers set the theme as Silicon to Systems Building the Ecosystem.

Modi used the platform to launch the second phase of the semiconductor mission. He described the move as the shift from building plants to actual commercial chip output. Three units approved under the first phase have already entered commercial production according to the Ministry of Electronics and Information Technology.

The minister also inaugurated two new facilities virtually. One is the assembly testing marking and packing unit of Continental Device India in Mohali. The other is the outsourced semiconductor assembly and test facility of Suchi Semicon in Surat Gujarat.

Modi told the gathering that the world needs new trusted locations for chip manufacturing. He said India is preparing itself for that role. The statement came from the official address reported by multiple outlets covering the event.

Phase Two Raises Outlay and Extends Timeline

The first phase carried an outlay of Rs 76,000 crore over five years. The second phase sets the budget at Rs 1,27,500 crore and runs for 12 years. Union Minister Ashwini Vaishnaw laid out six pillars for the new phase. They cover chip design machines and materials fabs advanced packaging research and talent.

Vaishnaw said the earlier phase focused on startups and design. More than 105 startups took part and about 20 secured venture funding of Rs 800 crore. The new target aims for at least 200 chip design companies and firms across the spectrum of semiconductor needs.

Training targets have also been revised upward. India trained 70,000 design engineers in four years against a ten year goal of 85,000. The second phase now aims to prepare one lakh factory floor and clean room workers.

Modi added that the government wants fabless firms to grow inside India. He stressed the need for intellectual property creation within the country rather than only assembly work.

Investment Commitments Cross Rs 1 Lakh Crore Mark

Day one of the event brought investment commitments of around Rs 1 lakh crore or roughly 11 to 12 billion dollars across the ecosystem. Applied Materials announced its India Vision 2035 plan. The company will invest 5 billion dollars over the next decade.

The plan includes a 140 acre advanced semiconductor research park. It also targets a tenfold increase in India based supply chain capacity by 2035. Lam Research separately announced plans worth around Rs 10,000 crore for a silicon component manufacturing facility and expanded research operations.

Tata Electronics signed multiple agreements. One memorandum with Nexperia covers wafer fabrication assembly testing technology collaboration and innovation. Another with Ascendas First Space targets a 363 acre vendor park in Dholera Gujarat to support suppliers around the Tata fab.

Further tie ups involve Fujifilm and JSR for materials and chemicals. BESI Singapore will work on advanced packaging capabilities. These announcements were detailed in reports from the Ministry and participating companies.

International Players Join the Push

More than 300 international companies are present at the exhibition. Participants include ASML Applied Materials Teradyne Infineon Ebara Jabil IBM Research NXP Micron Merck KGaA Rapidus Lam Research CG Power and Tokyo Electron.

Ajit Manocha president and chief executive of SEMI described the sector as set for unprecedented exponential growth. He called India indispensable to the global chip supply chain in remarks at the event.

Union Minister Vaishnaw noted that the programme remains measured and calibrated. The focus stays on building the right talent and ensuring the ecosystem takes root inside the country.

Micron chief executive Sanjay Mehrotra said the company will scale its Sanand Gujarat assembly and test facility. This year the site will handle tens of millions of chips. Next year the target rises to hundreds of billions of chips.

Comparison of Key Investment and Capacity Announcements

Company or Programme	Investment or Outlay	Timeline	Key Deliverables
Semicon 2.0 overall	Rs 1,27,500 crore	12 years	Design materials fabs packaging research talent
Applied Materials India Vision 2035	5 billion dollars	10 years	140 acre research park tenfold supply chain growth
Lam Research	Rs 10,000 crore	Several years	Silicon ingot facility advanced R and D expansion
Tata Electronics partnerships	Not separately disclosed	Ongoing	Wafer fab assembly testing vendor park materials supply
Micron Sanand facility	Part of earlier mission	Scaling now	Tens of millions chips this year hundreds of billions next year

The table draws directly from announcements made on 17 September at the event. Numbers reflect figures released by the companies and the Ministry of Electronics and Information Technology.

What the Numbers Leave Unsaid

The outlay figures cover a wide spread of activities but actual commercial chip volumes from new Indian fabs remain modest in the near term. Three units have started production yet the broader ecosystem for equipment materials and advanced nodes is still taking shape.

Applied Materials commitment stands out for its research park element. Lam Research focus on silicon components addresses a gap in upstream supply. Both moves signal long term intent rather than immediate volume output.

Talent targets look ambitious on paper. Reaching one lakh clean room workers requires sustained execution across training institutes and industry partners. Design startup growth from 105 to 200 also depends on continued venture interest and policy stability.

Foreign partnerships bring technology but they also tie Indian capacity to global supply chains that can shift with geopolitics. The real test lies in whether Indian firms capture meaningful intellectual property and move up the value chain beyond assembly.

Who Should Pay Attention Now

Indian design houses and startups stand to gain from the expanded support under the six pillars. The push for 200 design entities opens doors for firms already active in the space.

Equipment and materials suppliers can track the Applied Materials and Lam Research commitments for potential local tie ups. The vendor park plans around Dholera offer another entry point for component makers.

Policy watchers and investors should watch the pace of commercial production from the three new units. Early output numbers will show whether the shift from construction to sales is real or still aspirational.

Defence and aerospace users may benefit indirectly as the broader semiconductor base grows. The mission does not target those sectors directly yet the ecosystem push supports dual use capabilities over time.

The short version. Semicon 2.0 raises the budget to Rs 1.27 lakh crore over 12 years and shifts focus to commercial chip production with fresh investment pledges from Applied Materials and others.

Sources

Reported from the sources above on 2026-09-18. Figures are as published at the time of writing. If something here has moved on, the linked source is the one to trust.

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