THEBUSINESSBYTES BUREAU

NEW DELHI, MARCH 13, 2026

India is steadily strengthening its position as a global hub for semiconductor design and research, with nearly one-fifth of the world’s semiconductor chip design workforce now based in the country. The government’s focused push to develop a complete semiconductor ecosystem — from research and design to fabrication and manufacturing — has significantly accelerated India’s rise in the global technology landscape.

This information was submitted by Union Minister of State for Electronics and Information Technology Jitin Prasada in Rajya Sabha on Friday.

The semiconductor development strategy is inspired by Prime Minister’s vision of Atmanirbhar Bharat and Make in India, Make for the world. As part of this strategy, India aims to develop a complete ecosystem, ranging from R&D, design, fabrication, assembly, testing, packaging and module manufacturing and talent development.

The Government recognises that R&D is critical for building a strong semiconductor ecosystem. As a foundational industry, advancements in semiconductor R&D drive innovation, cost efficiency and global competitiveness. It also ensures a high product performance and reliability in this rapidly evolving technology sector.

Under the Semicon India Programme, launched to establish a robust semiconductor and display manufacturing ecosystem in the country, India has made notable progress within a short span. Investment commitments worth about ₹1.6 lakh crore have been secured in just three years. A total of 10 semiconductor units have been approved, including two fabrication units and eight ATMP/OSAT facilities, with construction advancing rapidly. One unit has already started commercial production, while three others are currently in pilot production stages.

Most of the approved projects also incorporate pilot lines for product testing and qualification, with several proposals including dedicated R&D activities. Complementing the manufacturing push, the government has introduced the Design Linked Incentive (DLI) Scheme to promote the design, development and deployment of semiconductor products such as Integrated Circuits (ICs), chipsets, Systems on Chips (SoCs), systems and IP cores.

Under the DLI scheme, 24 projects have been approved for semiconductor chip and SoC design with a total project value of ₹900 crore. These projects target critical sectors including video surveillance, drone detection, energy metering, microprocessors, satellite communications, broadband and IoT solutions. Of the 24 projects, 14 companies have already raised venture capital funding to scale up and commercialise their technologies, collectively attracting ₹650 crore in VC investments.

Significant progress has also been achieved in chip fabrication. Seven chips have been successfully fabricated out of 16 designs taped out across multiple global foundries, including advanced nodes such as 12 nm at TSMC. In addition, 105 fabless chip design companies have received support through access to advanced design infrastructure, together utilising nearly 60 lakh hours of electronic design automation tools.

The academic ecosystem is also witnessing a surge in semiconductor innovation. Around 315 universities across the country now have access to advanced EDA tools for students, with total usage exceeding 185 lakh hours. Furthermore, 146 chip designs have been taped out by 49 institutions, of which the Semiconductor Laboratory (SCL) has successfully fabricated and packaged 94 student-designed chips.

Building on the success of the programme, the Union Budget 2026-27 has announced the India Semiconductor Mission 2.0, which will focus on semiconductor equipment and materials, full-stack design capabilities, development of Indian intellectual property and strengthening supply chains.

According to industry estimates, India has emerged as a global hub for semiconductor design and R&D. The country hosts about 7 percent of the world’s Global Capability Centres in the semiconductor domain and employs nearly 20 percent of the global semiconductor chip design workforce. Indian engineers working in these GCCs are contributing to the design, verification and development of cutting-edge technologies, including advanced nodes such as 2 nm chips and other globally competitive semiconductor products.

To further strengthen the innovation ecosystem, the Department of Science and Technology is implementing two key initiatives. The Anusandhan National Research Foundation (ANRF) supports academic research, industry collaboration and translational research across priority sectors such as artificial intelligence, deep technology, climate, health, semiconductors and advanced materials with an outlay of ₹50,000 crore over five years. Complementing this effort is the Research, Development and Innovation (RDI) Fund with an allocation of ₹1 lakh crore to support late-stage technology development and commercialisation in areas such as AI, quantum computing, robotics and biotechnology.

Together, these initiatives aim to strengthen the entire innovation pipeline — from knowledge creation in academia to industrial deployment and commercialisation.

The Ministry of Electronics and Information Technology (MeitY) is also supporting several advanced research projects in semiconductor technologies across academic institutions and research organisations. Among them is a project titled “Next Generation AMOLED Displays, OLED Lighting and OPV Products” at IIT Madras with an outlay of about ₹42 crore to develop prototypes for mobile phones and enable cost-effective electronic component manufacturing in India.

Another major initiative is the Gallium Nitride Ecosystem Enabling Centre and Incubator (GEECI) at the Indian Institute of Science, Bengaluru, implemented through FSID with an outlay of around ₹334 crore. The project aims to develop an end-to-end ecosystem for GaN-based electronics manufacturing for high-power and high-frequency RF applications.

In addition, the Indian Nanoelectronics Users’ Programme supports micro and nanoelectronics research through nano-centres established at IISc Bengaluru and several IITs. The programme promotes research in MEMS, compound semiconductors, sensors and photovoltaics while also providing startup incubation and prototyping support.

MeitY’s dedicated society, the Centre for Materials for Electronics Technology (C-MET), continues to advance research in semiconductor materials and allied domains, strengthening India’s capabilities in critical electronic technologies.