World needs new, trusted chip bases, India ready for it: PM Modi

Prime Minister Narendra Modi has emphasized the need for new and trusted semiconductor manufacturing bases globally, positioning India as a potential alternative hub. Speaking at SEMICON India 2026, Modi stated that India is preparing for this transition, having entered the second phase of its semiconductor journey beyond policy and construction.

The country has achieved semiconductor manufacturing in about four years, compared to the usual decade, but considers it an ongoing process. India has approved 12 semiconductor projects under the first phase of the India Semiconductor Mission, with three already in commercial production. The government has launched Semicon 2.0, a Rs 1.27 lakh crore initiative to expand the ecosystem beyond large chip factories, encompassing equipment, materials, design, research, development, supply chains, and skilled manpower.

With a projected semiconductor demand of $110 billion by FY30 and $200 billion by FY35, India's domestic manufacturing is still in its infancy, and the government is prioritizing the development of a comprehensive semiconductor ecosystem. The Prime Minister urged private companies to increase their involvement in research and development, emphasizing the need for industry to contribute to advanced technology development.

Major semiconductor equipment companies, such as Applied Materials and Lam Research, have announced significant investments in India, including the establishment of a large semiconductor research park and a silicon-component manufacturing facility. These investments are expected to bolster India's position in the global semiconductor value chain.