₹1.64 Lakh Crore Chip Investments Signal Stronger Semiconductor Push

The Centre has approved 12 semiconductor projects across six states, involving investment commitments of more than Rs 1.64 lakh crore, as India accelerates efforts to build a domestic semiconductor ecosystem.

According to a government factsheet released ahead of SEMICON India 2026, the projects cover silicon and compound semiconductor fabrication, display fabrication and advanced packaging. Three of the approved facilities have already started commercial production.

The three-day SEMICON India event, which will be inaugurated by Prime Minister Narendra Modi on Thursday, is expected to bring together global semiconductor companies, policymakers, investors and industry stakeholders.

The government launched the Semicon India programme in 2021 with an initial outlay of Rs 76,000 crore. In July 2026, the Centre approved Semicon 2.0 with an expanded outlay of Rs 1,27,500 crore.

Electronics manufacturing and semiconductor talent get policy push

Semicon 2.0 focuses on six key areas — chip design, semiconductor equipment and materials, fabrication facilities, advanced packaging, research and development, and talent development.

India's electronics manufacturing sector has expanded significantly over the past decade. Electronics production increased from around Rs 1.9 lakh crore in 2014-15 to Rs 13.11 lakh crore in 2025-26, while electronics exports rose from about Rs 38,000 crore to Rs 4.24 lakh crore.

Mobile phone production also increased sharply, from Rs 18,000 crore to Rs 6.27 lakh crore during the same period. Mobile phone exports rose from around Rs 1,500 crore to Rs 2.59 lakh crore.

India now manufactures 99.2 per cent of the mobile phones it uses and has moved from being a net importer to a net exporter of mobile phones. The electronics manufacturing sector currently supports around 2.5 million jobs.

The government is also targeting the development of 85,000 skilled semiconductor engineers over the decade. Under the Chips to Startup programme, electronic design automation tools have been deployed across 320 academic institutions, with more than 68,000 students trained.

Separately, 24 semiconductor design projects have received financial support, while 105 startups and MSMEs have received EDA tool support under the Design Linked Incentive scheme.

The government has also extended semiconductor-related facilities to more than one lakh engineers across over 500 organisations, including academic institutions and startups, as India seeks to strengthen its position in the global semiconductor and electronics supply chain.