India’s Semiconductor Push Moves Beyond Fabs, Towards Silicon Sovereignty
MUMBAI, 1 SEPTEMBER: India’s semiconductor ambitions are entering a more consequential phase — moving beyond the creation of fabrication and assembly facilities towards building a deeper, globally integrated ecosystem spanning chip design, equipment, materials, advanced packaging, research and development, and talent.
Speaking at the Ashwamedh – Elara India Dialogue 2026, hosted by Elara Capital, during a session titled ‘Silicon Sovereignty: Powering Viksit Bharat’, Dr. Surinder Singh, Advisor, India Semiconductor Mission, outlined how the country is seeking to reduce its dependence on imported chips while positioning itself as a credible participant in the global semiconductor value chain.
The scale of the opportunity is already visible in India’s electronics manufacturing trajectory. Electronics exports have risen to around US$48 billion, accounting for nearly 11% of the country’s merchandise exports, compared with just 1.7% in 2014-15. Electronics manufacturing, currently estimated at around US$130 billion, is targeted to reach US$500 billion, underlining the growing strategic importance of the sector.
The first phase of the India Semiconductor Mission has begun translating the policy intent into physical capacity. Twelve projects have been approved so far, with three — Micron, CG Power and Kaynes — already having commenced production in Sanand, Gujarat. Alongside these assembly and testing facilities, a major silicon fabrication facility is being developed in Dholera, while projects across Gujarat, Assam, Odisha and other locations are expanding the geographical footprint of the emerging ecosystem.
The next phase, Semicon 2.0, is designed to address the gaps that remain beyond fabs and packaging. Its six pillars cover chip design, machines and materials, additional fabs, advanced and legacy packaging, advanced technology R&D, and talent development. The programme places particular emphasis on areas such as semiconductor manufacturing equipment, semiconductor-grade chemicals and gases, advanced packaging, silicon photonics and the development of advanced nodes, with R&D efforts envisaged around the 7 nm to 3 nm technology path.
This deepening of the value chain is critical because semiconductor competitiveness is not determined by fabrication capacity alone. Equipment, specialised materials, supply chains, intellectual property and skilled manpower are equally important. Under the new framework, incentives are being extended across these layers, including support for semiconductor-grade chemicals and gases, equipment manufacturing, advanced packaging and R&D. Talent development is another central focus, with an ambition to train one lakh engineers over five years, alongside programmes for technicians, operators and other specialised professionals.
India’s proposition is also increasingly being viewed through the lens of global partnerships. The semiconductor programme has developed country-level engagements with the US, European Union, Japan, Singapore, the Netherlands and Germany, while global semiconductor companies and technology providers are increasingly participating in India’s ecosystem. The country’s semiconductor conferences and CEO-level engagements are further strengthening this bridge between domestic capability and global industry.
Reflecting on the shift in global perceptions of India’s semiconductor capabilities, Dr. Surinder Singh said, “We have started to walk. We have a long way to go. Leave alone running.”
The observation captures the larger trajectory of India’s semiconductor journey: the immediate objective is not simply to build more plants, but to create the depth, scale and confidence required for sustained participation in one of the world’s most strategically important industries. As AI, advanced computing, mobility, defence and digital infrastructure drive semiconductor demand, the ability to build resilient domestic capabilities could increasingly become an important component of India’s broader Viksit Bharat ambition.
(Disclaimer: The information provided here is investment advice only. Investing in the markets is subject to risks and please consult your advisor before investing)
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