India Launches Semicon 2.0 to Build $200 Billion Market

The Government of India unveiled the Semicon 2.0 roadmap during the SEMICON India 2026 summit, shifting the national strategy from basic manufacturing to a comprehensive value chain ecosystem. The program includes investment commitments of approximately Rs 1.27 lakh crore and aims to create nearly 100,000 jobs. Prime Minister Narendra Modi announced that commercial chip production has already begun at plants in Mohali and Surat, complementing the Micron facility in Sanand.

To reduce reliance on imports, which rose to USD 30.3 billion in FY25, the government is targeting the design and manufacture of chips for automobiles, consumer electronics, and power infrastructure. Electronics and IT Minister Ashwini Vaishnaw stated the goal is to move beyond assembly and testing to establish a first fabrication unit by 2028. This effort is supported by major investments, including a USD 5-billion plan from Applied Materials, a Rs 10,000-crore proposal from Lam Research, and a vendor park by Tata Electronics in Dholera.

A report by EY and the India Electronics and Semiconductor Association projects the Indian semiconductor market will grow from USD 64 billion in 2026 to USD 200 billion by 2035. The report emphasizes leveraging India's talent pool, which comprises 20% of the world's chip design engineers, to move toward design-led manufacturing. While the nation has made strides in mature-node chips, challenges remain regarding domestic intellectual property and a continued reliance on imported specialty materials.