The Indian PM said the world needs new reliable locations for semiconductor manufacturing as New Delhi expands its chip program
India is preparing to become a “trusted” global chipmaking hub as it expands its government-backed semiconductor program, Prime Minister Narendra Modi has told an industry conference, while laying out a vision to build a broader hi-tech industry in the country.
”The world needs new and trusted locations for chip manufacturing and India is preparing itself for this,” Modi told the SEMICON India 2026 conference in New Delhi on Thursday.
The pitch positions India to benefit from the surge in demand for chips – driven by the boom in artificial intelligence and data centers – which has outpaced production and driven up prices. It also offers up the country as an alternative manufacturing destination for companies amid global supply-chain worries and geopolitical tensions.
The start of commercial production at two Indian semiconductor facilities was announced at the event, taking the number of chip production units in the country to five. Twelve chip fabrication plants have been approved under Semicon 2.0, India’s ambitious semiconductor mission, which is backed by $13.5 billion in funding.
India is preparing today for the chips of tomorrow!
“This year, we are talking about the commercial production of our chips. India’s chips will go out to the world,” Modi said. He urged companies to expand research and development in India and called for the growth of fabless semiconductor firms, which design chips without operating their own fabrication plants.
Semicon 2.0 aims to broaden India’s semiconductor ecosystem to chip design, semiconductor equipment and materials, fabrication, advanced packaging, research and development, and talent development. Modi said the number of projects is expected to increase as the domestic ecosystem is built out.
The event brought new investment commitments from major global chip equipment manufacturers. US-based Applied Materials said it will invest $5 billion in India over the next decade, including in research, domestic supply chains, and workforce development.
Lam Research plans to invest around $1.04 billion over the next several years to establish its first silicon-component manufacturing facility in India and expand its research operations. The proposed facility will cover silicon ingot production and processing for advanced semiconductor technologies.
India’s semiconductor demand is projected to reach $87 billion by FY2030 and $206 billion by FY2035, according to the roadmap released by the country’s planning body, NITI Aayog. New Delhi spent almost $150 billion on semiconductor product imports between FY2017 and FY2025, while domestic manufacturing remains at an early stage.
India has also sought to expand cooperation in advanced technologies through the BRICS forum. The bloc’s New Delhi Declaration, adopted last week, backed greater cooperation in artificial intelligence and quantum technologies and welcomed a proposal to create BRICS Global Research Advanced Infrastructure Network centers.
