August 17, 2026 -
India is building an integrated semiconductor and artificial intelligence ecosystem, with investments in chip manufacturing, indigenous design, advanced computing, AI models and research aimed at strengthening technological self-reliance and positioning the country as a global technology hub.
The country’s semiconductor programme has moved from policy and ecosystem creation towards manufacturing, with 12 semiconductor projects approved across six states involving investment commitments of more than Rs 1.64 lakh crore. Three of these facilities have already commenced commercial production.
The government had allocated Rs 76,000 crore under Semicon 1.0 to establish the semiconductor ecosystem. In July 2026, Semicon 2.0 was approved with an outlay of Rs 1,27,500 crore, expanding the focus to chip design, semiconductor equipment and materials, fabrication, advanced packaging, research and development, and talent development.