India’s semiconductor ecosystem expands rapidly: PM Modi

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New Delhi, September 17

India’s semiconductor ecosystem is expanding rapidly, opening new opportunities for innovation, investment and growth, Prime Minister Narendra Modi said as he inaugurated SEMICON India 2026 in New Delhi on Thursday.

Addressing the gathering, Modi welcomed participants from India and abroad and highlighted the significance of the semiconductor industry for the country’s development. The Prime Minister linked the inauguration of SEMICON India with Vishwakarma Diwas, which celebrates the tradition of craftsmanship and creation. He said the combination of India’s creative heritage with 21st-century technology and vision could help advance the goal of a self-reliant and developed India.

“This is our inspiration for a self-reliant India, a Viksit Bharat,” Modi said. He also pointed to developments in the Indian economy and India’s growing engagement with the world. Referring to recent economic and diplomatic developments, he said the country’s economic growth and international confidence in India were increasing together.

Modi traced India’s semiconductor journey from policy discussions and project planning to pilot lines and commercial production. He said chips manufactured in India had begun reaching customers in the country and abroad, while commercial production had started at two new plants in Mohali and Surat.

The Prime Minister acknowledged the complexity of building a semiconductor ecosystem, which requires expertise in chip design, equipment manufacturing, testing and other areas. He credited industry leaders and their partnerships with helping India make progress in the sector.

“You are the pillars of this success of India, you are partners,” Modi said. The Prime Minister announced the second phase of the Semiconductor Mission, with an investment target of $13.5 billion. He said the government was working on regulatory reforms to support collaboration between international companies, startups and chip-design firms.

Modi also called for greater attention to domestic supply chains, including fabless companies, intellectual property, silicon photonics, equipment, chemicals, gases and materials. “We want the entire ecosystem to grow together,” he said.

He urged companies to make use of the opportunities emerging from approved semiconductor projects and growing demand for chip-related products. The Prime Minister highlighted India’s engineering talent and government initiatives to train students in chip design.He said the government had set a target of training one lakh engineering students, with 70,000 already trained.Modi urged young researchers in India and abroad to contribute to the development of advanced technologies in the country.

He also called on industry leaders to increase investment in research and development, saying it would benefit both businesses and India’s youth.Addressing the changing semiconductor market, Modi said the rapid growth of artificial intelligence was creating new challenges for the industry.

He pointed to the importance of system integration, memory placement and heat management, alongside transistor size.The Prime Minister said India was preparing to meet the requirements of a changing global manufacturing landscape. “The world is looking for new and trusted manufacturing destinations; India is steadily preparing itself to meet this need,” he said.

Modi also highlighted the importance of reliable energy supplies for semiconductor manufacturing and AI data centres. He referred to India’s expansion of solar power capacity, the opening of nuclear energy to private players and the development of small modular reactors.

He said investments in the power sector would strengthen the country’s semiconductor ecosystem.

“India is taking every step that makes us a preferred destination for the semiconductor industry,” the Prime Minister said.