PM Modi says India is ready for global semiconductor manufacturing

Prime Minister Narendra Modi on Thursday said India is positioning itself as a trusted destination for global semiconductor manufacturing, with the government taking measures to support the industry through policies and regulatory frameworks.

Speaking at the inauguration of SEMICON India 2026, Modi said the country’s semiconductor ecosystem is expanding rapidly and creating new opportunities for innovation, investment and growth. SEMICON India 2026 is being held from September 17–19 at Yashobhoomi in New Delhi.

The prime minister said the world needs new and trusted locations for chip manufacturing and that India is preparing for this shift.

“India is taking all measures to become a preferred destination for semiconductor manufacturing,” he said.

Modi said 12 chip-making projects have so far been approved and that the number is expected to increase in the next phase. PIB has also confirmed that 12 projects have been approved under the first phase of the Semicon India programme.

He said the outlay for India Semiconductor Mission 2.0 has been increased to USD 13.5 billion from USD 8 billion in the first phase.

“Be it policies, regulatory framework…whatever is needed for you (manufacturers) to succeed, government is taking all steps and efforts to ensure that.”

Modi also pointed to India’s economic expansion and growing global confidence in the country, citing Q1 GDP growth and the upgrade in India’s rating by Japanese rating agency JCRA. JCRA upgraded India’s sovereign rating by one notch to A- from BBB+ earlier this month.

India is seeking to build a complete semiconductor ecosystem that extends beyond chip design and assembly to fabrication, advanced packaging, equipment, materials, research and talent. The aim is to strengthen electronics manufacturing and reduce dependence on global supply chains.

The country is also seeking to benefit from the global effort to diversify semiconductor supply chains away from concentrated manufacturing hubs and build India’s role in chipmaking and electronics manufacturing.

Backed by billions of dollars in incentives, the government is seeking to attract global manufacturers by leveraging India’s engineering talent, large consumer market and strategic position. The broader effort covers chip design, fabrication, packaging and testing.

On Thursday, Applied Materials announced USD 5 billion in investments under its Vision 2035 initiative to integrate India’s semiconductor ecosystem into the global value chain. The company said the investment will support the development of India’s semiconductor ecosystem over the coming decade.