India's second phase of its semiconductor programme, Semicon 2.0, has attracted investment commitments of around ₹1 lakh crore, or approximately $11 billion to $12 billion, as the government looks to expand the country's presence across the semiconductor value chain.
Union Electronics and Information Technology Minister Ashwini Vaishnaw, speaking during SEMICON India 2026 in New Delhi, said the investment interest covers areas including semiconductor equipment, materials, gases, chemicals and substrates. Several companies are yet to publicly disclose their plans as they await approvals from their boards and shareholders.
The proposed investments are expected to materialise over the next two to three years. The government has not disclosed a company-wise breakdown of the ₹1 lakh crore figure, making it an indication of current investment commitments rather than capital already deployed.
Semicon 2.0 has been approved with an outlay of ₹1.27 lakh crore and is intended to broaden India's semiconductor strategy beyond manufacturing facilities. The programme focuses on six areas: chip design, semiconductor equipment and materials, fabrication plants, advanced packaging, research and development, and talent development.
The second phase builds on the first India Semiconductor Mission, which sought to establish domestic semiconductor manufacturing and packaging capacity. India currently has 12 approved semiconductor manufacturing projects with cumulative committed investment exceeding ₹1.64 lakh crore. Three facilities have begun commercial production, while other projects remain at different stages of development.
The government is also expanding its focus on semiconductor skills. Under Semicon 2.0, it plans to train one lakh technicians over the next five years to support fabrication plants and other semiconductor facilities. India has separately been building its chip-design talent base through programmes involving engineering institutions and access to electronic design automation tools.
The programme is also expected to increase support for chip-design startups and smaller manufacturers. The government has indicated that it wants to scale the domestic semiconductor design ecosystem while strengthening precision manufacturing capabilities needed to support larger fabrication and packaging projects.
Global semiconductor companies are simultaneously increasing their presence in India. Applied Materials has announced plans to invest $5 billion in the country by 2035 across research, supply-chain development and talent, while other global equipment and technology companies are expanding local operations.
The latest investment commitments signal the government's attempt to move from establishing individual semiconductor plants towards building a wider domestic ecosystem spanning design, manufacturing, equipment, materials, research and skilled talent.
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