India Approves 12 Semiconductor Projects and Expands AI Infrastructure

The Government of India is expanding its domestic semiconductor value chain and artificial intelligence infrastructure through a series of large-scale investments. The government has approved 12 semiconductor projects across six states, with investment commitments exceeding Rs 1.64 lakh crore. These projects include silicon and compound semiconductor fabs as well as advanced packaging facilities. Three of these facilities have entered commercial production, and seven chips have been fabricated at nodes as advanced as 12 nm.

To sustain this growth, the government approved a Rs 1,27,500 crore outlay for Semicon 2.0 in July 2026. This initiative focuses on supporting semiconductor IP, chip, and system designs to establish the country as a global design hub.

Parallel to chip production, the IndiaAI Mission, supported by an outlay of approximately Rs 10,372 crore, has scaled shared compute capacity to over 45,000 GPUs as of June 2026. By August 2026, 237 projects utilized subsidized AI computing for a total of 93.18 lakh GPU hours to reduce barriers for start-ups and researchers.