New Delhi, September 15 (Daily Kiran) : India’s semiconductor ecosystem is rapidly developing, with emphasis on chip manufacturing, design, packaging, testing, and the entire supply chain. This information was shared in a government fact sheet ahead of the Semicon India 2026 event, which Prime Minister Narendra Modi will inaugurate on September 17.
The theme for this year’s Semicon India is “From Silicon to Systems: Building the Complete Ecosystem.” The three-day event will take place at Yashobhoomi in Dwarka, featuring representatives from major chip companies, policymakers, and investors.
In recent years, India has made significant strides in establishing its semiconductor ecosystem. Launched in 2021, the Semicon India initiative aims not just to set up a single chip factory but to create a comprehensive semiconductor ecosystem.
For Semicon 1.0, the government allocated ₹76,000 crore, covering the entire value chain from chip design and manufacturing to packaging, testing, machinery, raw materials, and skilled labor.
In July 2026, the government approved Semicon 2.0, which includes an allocation of ₹1.27 lakh crore. This initiative focuses on six key areas: chip design, semiconductor manufacturing machinery and materials, chip fabrication plants, advanced packaging, research and development, and the development of skilled talent.
Progress on the ground further confirms the success of the Semicon initiative, with approvals granted for 12 semiconductor projects across six states, committing over ₹1.64 lakh crore in investments. These projects include silicon and compound semiconductor fabrication plants, display manufacturing, and advanced packaging, with commercial production already started at three facilities.
This marks a significant shift, indicating that India’s semiconductor policy is now actively being implemented, not just existing on paper.
Additionally, under the “Chips to Startup” program, electronic design automation (EDA) software and tools have been made available at 320 educational institutions. More than 68,000 students have received training to date.
Furthermore, 24 semiconductor design projects have been approved for financial assistance. The DLI scheme has also supported 105 startups and small to medium enterprises with EDA tools.
The fact sheet revealed that by April 2026, 75 institutions had developed 211 chip designs, reaching the next production stage known as ‘tape-out.’ This development shows that chip design capabilities are no longer limited to a few major institutions.
To ensure chip design facilities are available across the country, the D-DAC has established the “Chips to Startup” (C2S) program and the “Design Linked Incentive” (DLI) scheme, creating the ChipIn Center. This national shared facility provides engineers and institutions with modern chip design tools, manufacturing services, and specialized training.
Over 500 institutions and more than 100,000 engineers have benefited from the ChipIn Center’s resources, including 400 educational institutions and 100 startups. Together, they have produced over 300 chip designs, which have been sent for manufacturing at SCL in Mohali and advanced chip factories abroad.
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