India’s explosive entry into semiconductor manufacturing! Now India will become the global leader in chips, with a ₹1,000 crore plan ready.
India plans to transform its identity with a massive investment in semiconductor manufacturing. The goal is to transform the country into a global chip manufacturing hub. This move comes amid global competition and the need to focus on modern technologies. A substantial ₹1,000 crore has been allocated for this mission in the 2026-27 budget. The aim is to develop chip-making machinery, materials, and technology in India, minimizing our dependence on foreign sources.
Under this mission, chip-making equipment and necessary materials will be manufactured in India. Additionally, chips with entirely Indian designs will be manufactured, and the supply chain for chips within and outside the country will be strengthened. Under this plan, India aims to meet 70-75% of its chip needs by designing them in-house by 2029.
Why is this so significant for India?
In today’s world, every electronic device—mobile phones, laptops, cars, AI, and defense systems—runs on chips. These chips are the “backbone of the modern world.”
India’s Semiconductor Market
- Approximately $38 billion in 2023
- $45-50 billion in 2024-25
- Expected to reach $100-110 billion by 2030
India aims to be among the world’s top semiconductor producing countries by 2035.
Major Budget Support
- The Union Budget 2026-27 allocated ₹1,000 crore for the India Semiconductor Mission 2.0 (ISM 2.0).
- It focuses on manufacturing semiconductor equipment in India, developing local intellectual property (IP), and strengthening the supply chain.
- The primary objective of this scheme is to promote industry-led research and workforce training.
Key Goals of ISM 2.0
- Produce semiconductor equipment and materials in India.
- Create full-stack Indian chip design and IP.
- Strengthen domestic and global supply chains.
- By 2029, India will be able to design and manufacture 70-75% of its chips for domestic needs.
