India's semiconductor push: 12 units, $20B investment, 3 making chips

Union Minister Ashwini Vaishnaw said India's semiconductor ecosystem is entering a new phase with 12 units involving around $20 billion investment. He noted that three of these units have already started manufacturing chips under the Semicon India programme.

Union Minister Ashwini Vaishnaw (File photo: ANI)

India's semiconductor manufacturing ecosystem is entering its next phase with 12 semiconductor units involving around $20 billion in investment, three of which have already started manufacturing chips, Union Minister for Electronics and Information Technology Ashwini Vaishnaw has said.

Progress Since 2022

Highlighting the progress made since the launch of the Semicon India programme in 2022, Vaishnaw said the government had learnt from previous attempts and focused on establishing a clear policy framework and stronger execution. "2022: We started Semicon India. Learnt from past attempts. Clear policy and execution," Vaishnaw said in a post on X on Saturday.

Semicon 2.0 and Future Outlook

According to the minister, the semiconductor push has now resulted in 12 units with a combined investment of $20 billion. Three of these units have already begun making chips, marking a shift from policy and project approvals towards actual semiconductor production in India. Vaishnaw also highlighted the recent approval of Semicon 2.0, signalling the government's intention to build on the progress achieved under the first phase of its semiconductor programme. "2026: 12 semiconductor units with $20 billion investment. 3 units already making chips. Semicon 2.0 approved. and we are just getting started...," he said, responding to a post which mentioned that AMD wanted to Make India its Semiconductor Manufacturing Hub and was investing USD 3 billion in a Fab in India back in 2005 but it fell apart due to roadblocks.

India is taking steps to come up as a major semiconductor manufacturing and technology hub, reducing vulnerabilities associated with dependence on overseas supply chains. Semiconductor chips are critical inputs for automobiles, smartphones, electronics, telecommunications equipment, defence systems and a growing range of emerging technologies.

With Semicon 2.0 now approved, the government is expected to focus on expanding manufacturing capacity and deepening India's semiconductor ecosystem. The next phase will be crucial in determining whether the initial investments can translate into a broader, globally competitive chip manufacturing base.

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