New Delhi, August 14: In the rapidly evolving landscape of artificial intelligence (AI) and semiconductor technology, India is making significant strides to bolster its domestic capabilities. According to an official fact sheet, the country is developing competencies across every critical segment of the semiconductor value chain, including chip design, wafer fabrication, advanced packaging, equipment manufacturing, and raw materials. To date, India has successfully manufactured seven chips across various technological nodes, including advanced nodes like 12 nanometers.
The government reports that it has approved 12 semiconductor projects across six states, with a total investment commitment exceeding ₹1.64 lakh crore. These projects encompass silicon and compound semiconductor fabs, display manufacturing units, and advanced packaging facilities. Notably, three of these units have already commenced commercial production, indicating that India is not just formulating policies but is also advancing towards actual manufacturing.
As of April 2026, 211 chips have been tape-out by 75 institutions in the country. This achievement reflects India’s growing domestic design capabilities and demonstrates its strong presence in the global chip design landscape.
In July 2026, the government also approved the ‘Semicon 2.0’ program, which has a provision of ₹1.27 lakh crore. The aim of this initiative is to promote semiconductor intellectual property (IP), chip design, and system design. The government believes this will further solidify India’s position as a global semiconductor design hub.
According to a government statement, semiconductors are the backbone of modern technology. Smartphones, automobiles, satellites, defense systems, and AI-based technologies all rely on advanced chips. With the expansion of AI, the demand for high-performance computing, specialized processors, and advanced chips is rapidly increasing. This interconnection is deepening the relationship between semiconductor and AI technologies.
In light of this changing technological landscape, India aims to go beyond chip manufacturing and is emphasizing the development of computing infrastructure and indigenous AI models. The government’s IndiaAI mission plays a crucial role in this direction.
With a budget of approximately ₹10,372 crore, the IndiaAI mission has made remarkable progress over the past year. By June 2026, the shared computing capacity under this mission had expanded to over 45,000 graphics processing units (GPUs).
Government data indicates that by August 2026, 237 projects have utilized subsidized AI computing facilities. These projects received a total of 93.18 lakh GPU hours, providing researchers, startups, and innovators in the country with high-capacity computing power at relatively low costs for developing, training, and testing AI models, as well as conducting research activities.
The government’s initiatives aim to lower entry barriers for Indian innovators and accelerate AI research and development in the country.
Leave a Comment