India’s semiconductor industry is entering a mature phase with several projects moving into commercial production ahead of the 2026 target, supported by a $15 billion policy boost and growing international interest.
India’s semiconductor sector is entering a more mature phase, with the government saying five or six projects could be in commercial production by the end of 2026. Speaking at the announcement of the fifth edition of Semicon India, MeitY Secretary S Krishnan said Prime Minister Narendra Modi will inaugurate Semicon India 2026 on 17 September at Yashobhoomi in New Delhi.
Krishnan said three major projects cleared under the first phase of the India Semiconductor Mission have already moved into commercial production. He said further launches are expected before year-end, describing the shift from approvals to output as proof of progress on the ground. Reuters-style reporting from the event underlines the government’s view that the early projects now serve as a signal to global chipmakers watching India’s industrial execution.
The next phase of policy support, known as ISM 2.0, is designed to broaden the state’s role beyond fabrication alone. According to reports on the approved programme, the package carries an outlay of about Rs 1.25 lakh crore to Rs 1.275 trillion and covers chip design, wafer fabrication, advanced packaging, equipment, specialty materials, research and workforce development. The plan also extends to compound semiconductors, display fabs and assembly, testing, marking, packaging and outsourced semiconductor assembly and testing facilities.
Krishnan said the government is placing particular emphasis on talent, arguing that India already has depth in chip design but needs a larger manufacturing workforce. He also said that training for semiconductor manufacturing could serve domestic industry and overseas demand alike. The ministry expects Semicon India 2026 to draw more than 240 international companies, over 150 speakers, delegations from more than 40 countries and six country pavilions, as India’s semiconductor market is projected to grow from about $100 billion to $200 billion.
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