THEBUSINESSBYTES BUREAU

NEW DELHI, SEPTEMBER 17, 2026

Prime Minister Narendra Modi on Thursday said India’s semiconductor ecosystem is expanding rapidly, opening up new opportunities for innovation, investment and growth, as he pitched the country as a trusted destination for global chip manufacturing and called for greater industry participation in research, development and talent creation.

Inaugurating the fifth edition of SEMICON India 2026 at Yashobhoomi in New Delhi, Modi welcomed participants from India and abroad and said the event assumes special significance as the country moves from policy formulation and project planning to commercial semiconductor production. SEMICON India 2026 is being held from September 17-19 with the theme “Silicon to Systems: Building the Ecosystem”.

The Prime Minister drew a parallel between the launch of SEMICON India and Vishwakarma Jayanti, saying the convergence of India’s centuries-old tradition of creation and construction with 21st-century technology and vision provides inspiration for a self-reliant and developed India.

 “On one side, our centuries-old tradition of creation, and on the other side, the technology and vision of the 21st century — this is our inspiration for self-reliant India, for developed India,” he said.

Highlighting developments over the past 15 days, Modi referred to discussions on inclusive finance at the Global Fintech Fest, the operationalisation of a 3,000-km Dedicated Freight Corridor and quarterly GDP growth of 7.8 per cent. He also cited a recent sovereign rating upgrade by a Japanese credit rating agency, saying these developments reflected both economic expansion and growing international confidence in India.

 “Meaning, on one hand, India’s economy is growing, and on the other hand, the world’s trust in India is also increasing,” he said.

Referring to the recently concluded BRICS Summit hosted by India, Modi said the unanimous adoption of the New Delhi Declaration demonstrated international consensus and was another indication of global confidence in the country.

The Prime Minister traced the evolution of the India Semiconductor Mission since its launch in 2022, noting that the journey had moved from policy discussions and project planning to pilot lines and commercial production. He said chips manufactured in India had started reaching customers domestically and globally, while commercial production had commenced at two new plants in Mohali and Surat.

 “Now our chips, coming out of India’s plants, have started reaching customers in the country and the world,” Modi said.

Acknowledging the complexity of creating a semiconductor ecosystem, Modi said India had rapidly developed capabilities across chip design, equipment manufacturing and testing through collaboration between the government and industry.

He described industry leaders as “pillars” and partners in India’s semiconductor journey, saying their participation had helped the country make a rapid technological transition.

The Prime Minister said the sector must maintain its momentum and explained the importance of “tape out” in chip development, while emphasising that the government was already preparing for the next generation of semiconductor technology.

He announced the second phase of the Semiconductor Mission with an outlay of USD 13.5 billion and said regulatory reforms were being undertaken to facilitate greater collaboration among international companies, startups and design firms. The Union Cabinet had approved Semicon 2.0 in July 2026 with an outlay of Rs 1,27,500 crore, with the programme focusing on research and development, chip design, machines and materials, fabs, talent and advanced packaging.

 “The Government of India is taking every step needed for the success of your projects,” Modi said.

Outlining his vision for a complete domestic semiconductor supply chain, Modi stressed the need to nurture fabless companies, develop intellectual property and integrate silicon photonics into AI-enabling infrastructure.

He urged companies operating in equipment, chemicals, gases and materials to take advantage of the opportunities emerging from the 12 approved semiconductor projects and the expanding demand pipeline.

 “We want the entire ecosystem to grow together,” he said.

Modi also highlighted India’s large pool of engineers and the country’s growing skilling programmes for chip design. He said the government had set a target of training one lakh engineering students in semiconductor-related skills, with around 70,000 already trained.

 “Such a large talent pool is, in a way, nothing less than a gold mine for all of you,” he said.

Calling on Indian and overseas researchers and young technology professionals to contribute to advanced research in India, the Prime Minister urged industry leaders to spearhead research and development activities in the country.

He said greater industry participation in R&D would create benefits for businesses while strengthening opportunities for India’s youth.

 “There is benefit for the industry in this, and the youth power of India will also get strength from this,” Modi said.

Addressing the changing requirements of the global semiconductor industry, Modi said the rapid growth of artificial intelligence was shifting the focus beyond transistor size towards overall system integration, including memory placement and heat management.

He said India was preparing to meet these emerging manufacturing challenges and position itself as a reliable destination for global companies seeking new production locations.

 “The world is looking for new and trusted manufacturing destinations; India is steadily preparing itself to meet this need,” he said.

Modi also underlined the importance of energy security for semiconductor manufacturing and AI infrastructure, noting the enormous electricity requirements of high-performance computing and the need for uninterrupted power supplies for manufacturing plants.

He said India was rapidly expanding its power-generation capacity, including solar energy, which has crossed 160 GW, while the government has also opened the nuclear energy sector to private participation and is working on small modular reactors.

 “Therefore, India today is making huge investments in the power sector as well,” he said.

The Prime Minister said the expansion of energy infrastructure would provide an important foundation for the semiconductor ecosystem and reiterated the government’s commitment to creating conditions conducive to industrial growth.

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

SEMICON India 2026 brings together global semiconductor and electronics companies, industry leaders, policymakers, investors, researchers, academia, startups and students. The three-day event is aimed at strengthening collaboration across the semiconductor value chain, from design and manufacturing to packaging, materials, talent and research.

Concluding his address, Modi linked India’s technological ambitions with its democratic traditions and the country’s constitutional legacy, saying that the development of a critical industry in the “Mother of Democracy” would contribute to strengthening global semiconductor supply chains.

 “India’s aspirations are before you, and the new opportunities being created in India are ready to welcome you,” he said.