PM Modi pitches India as trusted chipmaking hub

NEW DELHI - In an effort to establish India as a trusted chip manufacturing hub, Prime Minister Narendra Modi announced plans to bolster the country's semiconductor industry at the Semicon India 2026 event on Thursday. Modi emphasized that the AI boom is driving demand for new and reliable chip manufacturing facilities, citing the need for advancements in chip integration, data movement, heat management, and dependable power.

The AI-driven challenges extend beyond the chip itself, requiring a comprehensive ecosystem to support its growth, as the global semiconductor market grew by over 20% in the last two years due to AI demand.

The Prime Minister announced that India is investing $13.5 billion in the second phase of its Semiconductor Mission, building upon the initial $8 billion phase. Twelve projects have been approved, with more anticipated in the future to foster a stronger domestic supply chain alongside chipmaking. Modi invited equipment manufacturers, chemical, gas, and material suppliers to invest in India, with the goal of strengthening the entire ecosystem.

The nation aims to encourage the return of Indian researchers working overseas to contribute to advanced technology development and urges the industry to lead R&D initiatives.

Modi highlighted compound semiconductors and silicon photonics as priorities for AI infrastructure. Over the years, India's chip industry has progressed from policy discussions and project announcements to commercial production stages, with Indian plants supplying customers both domestically and internationally. Two more plants are set to begin production in Mohali and Surat.

The Prime Minister emphasized that India's rapid development in the semiconductor industry is a result of simultaneous progress in chip design, production, equipment manufacturing, materials ecosystem, and testing capabilities.