Semicon 2.0: How India Is Building Its Own Semiconductor Powerhouse
India’s electronics story has undergone a remarkable transformation over the past decade. Now, the country is setting its sights on something far more ambitious: becoming a global semiconductor powerhouse.Union Minister Ashwini Vaishnaw says India’s semiconductor strategy is not about building a few isolated factories. The larger goal is to create an ecosystem spanning chip design, fabrication, packaging, equipment, materials, research and skilled talent.And the stakes could hardly be higher. Semiconductors power almost everything from smartphones, cars and drones to aircraft and MRI machines. With the global electronics industry estimated at $4.3 trillion, control over chip technology has become both an economic and strategic priority.The Foundation Was Built With ElectronicsIndia’s semiconductor ambitions may be grabbing headlines today, but the journey goes back decades. Vaishnaw notes that Fairchild Semiconductor explored setting up operations in India as early as 1960, but the idea did not take off. The turning point came much later.Through Make in India, investment reforms and manufacturing incentives, India built a rapidly expanding electronics manufacturing base. Today, the country has more than 300 electronics manufacturing units, with production crossing $130 billion and exports exceeding $48 billion, according to the minister.Electronics manufacturing now supports around 2.5 million jobs, creating the industrial foundation needed for the next leap.The $10-Billion BetIn 2021, the government launched the Semicon India programme, initially committing $10 billion to help establish semiconductor fabrication and packaging capabilities. The early scepticism was substantial. Could India master ultra-clean semiconductor facilities, ultrapure water systems and extraordinarily complex manufacturing equipment? Five years later, the government says the answer is beginning to emerge.Twelve semiconductor units have been approved, involving around $20 billion in cumulative investment. Three have already entered commercial production:Micron: February 28, 2026Kaynes: March 31, 2026CG Power: July 4, 2026The remaining projects are under construction.India’s Other Big Advantage: Chip DesignersBut making chips is only half the battle. Designing them requires highly specialised expertise—and this is where India already has a formidable base. Major semiconductor design companies have established large operations in the country, with Indian engineers working on advanced 2-nanometre and 3-nanometre designs.Through the Chips to Startup programme, electronic design automation tools have reached more than 320 universities and startups. The government has also supported 105 chip-design startups through its Design Link Incentive scheme.Semicon 2.0: Going DeeperNow comes the next chapter: Semicon 2.0. Its seven pillars target chip design, manufacturing equipment, semiconductor materials, additional fabs, advanced packaging, research into advanced nodes and talent development.India currently has 40-nanometre technology within its domestic ecosystem. The ambition is to bring 7-nanometre to 3-nanometre technologies to India within eight years. And the talent target is equally bold: 1 lakh chip-design engineers.The vision is no longer simply to put “Made in India” on electronics. It is to build the chips, machines, materials, ideas and talent behind them—right here in India.