PM Modi pitches India as trusted destination for chip manufacturing
New Delhi, Sep 17: Prime Minister Narendra Modi on Thursday positioned India as a reliable hub for global chip manufacturing, asserting that the government is implementing every measure necessary—through supportive policies and frameworks—to help the industry thrive.
Addressing the inauguration of SEMICON India 2026, the Prime Minister noted that the country's semiconductor ecosystem is growing at a fast pace, creating fresh avenues for innovation, investment and growth.
He observed that as the world looks for new and dependable manufacturing bases for chips, India is gearing up to meet that demand and is working to establish itself as a preferred hub for semiconductor production.
According to the PM, 12 chip-manufacturing projects have received approval so far, with the number expected to climb further in the coming phase. He also pointed out that the outlay under India Semiconductor Mission 2.0 has been raised to USD 13.5 billion, up from USD 8 billion in the initial phase. "Be it policies, regulatory framework...whatever is needed for you (manufacturers) to succeed, government is taking all steps and efforts to ensure that," he said.
Highlighting the country's economic momentum, Modi referred to the Q1 GDP growth figures and the recent upgrade of India's rating by Japanese agency JCRA, saying both reflect the world's growing confidence in the Indian economy.
The government's broader aim is to develop a comprehensive semiconductor ecosystem that goes beyond chip design and assembly to encompass fabrication, advanced packaging, equipment, materials, research and skilled talent—part of a wider push to boost domestic electronics manufacturing and cut reliance on global supply chains.
India is banking on the global shift towards diversifying semiconductor supply chains away from a handful of concentrated manufacturing centres, viewing this trend as an opportunity to emerge as a key player in chipmaking and electronics production.
Supported by incentives worth billions of dollars, the government is actively wooing international manufacturers while drawing on the country's engineering talent pool, large consumer base and strategic geographic standing to build a complete industry chain covering chip design, fabrication, packaging and testing.
Meanwhile, Applied Materials on Thursday unveiled a USD 5 billion investment plan under its Vision 2035 initiative, aimed at integrating India's semiconductor ecosystem into the global value chain.
