India’s semiconductor ambitions received a major boost as the government said investment commitments under the second phase of its semiconductor programme have reached around $11–12 billion. The commitments cover areas including semiconductor equipment, materials, gases, chemicals and substrates, with investments expected to come over the next two to three years.The development comes during SEMICON India 2026, where the country is showcasing its plans to expand domestic chip manufacturing and build a broader electronics ecosystem. The government has been trying to attract global semiconductor companies while also encouraging Indian firms to participate in different parts of the supply chain.
India’s semiconductor programme is intended to reduce dependence on imported chips and strengthen domestic manufacturing capabilities. The country has already approved projects involving semiconductor fabrication and assembly, while the newer phase places greater emphasis on developing supporting industries.
The latest commitments could create opportunities in manufacturing, engineering, electronics, research and skilled technical employment. However, investment pledges are not the same as completed investments, and the actual economic impact will depend on how quickly projects are implemented.
The semiconductor sector is increasingly important because chips are used in smartphones, vehicles, computers, telecommunications equipment, industrial machinery and artificial-intelligence infrastructure.
