Modi draws U.S. chip leaders’ backing for $30 billion India bet

On September 17, 2026, Prime Minister Narendra Modi highlighted India as a dependable hub for global chip manufacturing during the inauguration of Semicon India 2026. He emphasized that the government is implementing enabling policies and frameworks to guarantee the industry's success. The semiconductor ecosystem, Modi stated, is expanding swiftly, presenting fresh prospects for innovation, investment, and growth.

India is actively preparing to become a favored destination for chip manufacturing, with 12 projects already approved. The upcoming phase is expected to witness an increase in such projects.

The Indian government has substantially increased its support for the semiconductor sector, with the Indian Semiconductor Mission 2.0's outlay growing from $8 billion to $13.5 billion. Modi assured that the government is taking all necessary actions to facilitate manufacturers' success, encompassing policies, regulatory structures, and whatever else is required.

India's rapid economic expansion and growing global confidence in the nation, as indicated by Q1 GDP growth and a rating upgrade from Japanese rating agency JCRA, were also highlighted by the Prime Minister. By diversifying away from concentrated manufacturing hubs, India aims to establish a comprehensive semiconductor ecosystem.

This expansion encompasses not just chip design and assembly but also fabrication, advanced packaging, equipment, materials, research, and talent. The country is strategically betting on the global push to build a robust electronics manufacturing sector and diminish reliance on foreign supply chains.

New Delhi is actively recruiting global manufacturers, harnessing its engineering talent, expansive consumer market, and strategic geographical position as it strives to construct a full-stack industry, ranging from chip design to fabrication, packaging, and testing. Applied Materials, for instance, has announced a $5 billion investment under Vision 2035 to integrate India's semiconductor ecosystem into the global value chain.