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Beyond the fabs: What Semicon 2.0 plans for equipment, chip design, research and skills
Five plants are in commercial production; the second phase of India's chip programme targets equipment, materials, design companies and skilled workers.
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India's semiconductor push is moving from getting factories approved to building the wider ecosystem those factories need to work at scale. That was one of the main messages from Semicon India 2026, which ended on September 19 after three days of discussions among policymakers, chipmakers, equipment companies, investors, researchers and startups at the Yashobhoomi Convention Centre in New Delhi.
The event saw 56 announcements, MoUs and strategic initiatives, more than 600 exhibitors and participation from 52 countries.
The government used the event to set out what it wants to do next under Semicon 2.0, the second phase of its semiconductor programme. The government notified Semicon 2.0 in August with an outlay of ₹1,27,500 crore, against ₹76,000 crore for the first phase.
The focus now extends beyond building fabs. It covers making equipment and materials in India, building chip-design companies, expanding research, training workers and creating a supply chain around the semiconductor plants.
From investment interest to projects
Union electronics and IT minister Ashwini Vaishnaw said on the first day that companies had shown investment interest of around $11-12 billion, or roughly ₹1 lakh crore, under Semicon 2.0. He clarified that this was interest from companies that had engaged with the government, and should not be treated as investment already formally committed.
Semicon 2.0 is a six-year programme with six pillars: chip design, machines and materials, new fabs, advanced packaging, research and development (R&D), and talent. The government has described it as part of a longer, 20-year roadmap for the semiconductor industry. Vaishnaw has said the second phase could be completed ahead of its six-year timeline, as the first phase was completed in four years against an original six-year schedule.
Five of the 12 projects approved under the first phase have started commercial production. They are Micron, Kaynes, CG Semi, Suchi Semicon and CDIL, all packaging units that assemble and test chips made elsewhere. Tata Electronics' first semiconductor fabrication plant, in Dholera, Gujarat, is expected to be commissioned in 2028. It is designed to make mature-node chips, from 28nm to 110nm, for cars, industrial equipment and consumer electronics. Mature nodes are older, well-established generations of chipmaking technology, several steps behind the 3nm and 2nm processes used for the world's most advanced processors.
One of the clearest messages from Semicon India was that a semiconductor plant depends on a large network around it. A fab or packaging facility needs companies supplying equipment, chemicals, gases, materials and other specialised components. It also needs companies that can maintain this equipment and carry out precision manufacturing, making parts to extremely fine tolerances, such as the components inside chipmaking machines.
Prime Minister Narendra Modi, inaugurating the event on September 17, called on companies making semiconductor equipment, chemicals, gases and materials to expand in India. Vaishnaw said the government would put more emphasis on precision manufacturing under Semicon 2.0.
Three of the largest equipment makers announced plans at the event. US-based Applied Materials said it would invest $5 billion in India over the next decade and set up a 140-acre research park. Lam Research announced ₹10,000 crore for a silicon component manufacturing facility. Tokyo Electron said it would set up a training centre in Gujarat next year.
A report by EY and the India Electronics and Semiconductor Association (IESA), released during the event, also identified manufacturing clusters, stronger state-level policies and greater capabilities in materials, equipment and advanced packaging as priorities for the industry's next stage.
Also read: Opinion: From AI to semiconductors, Uttar Pradesh is shaping the future
Research, products and more specialised workers
R&D was another major part of the discussion at Semicon India. Under Semicon 2.0, companies will be invited to propose applied research projects that can receive joint funding from the government and industry, with universities and other academic institutions taking part.
The government plans to set up a precision manufacturing institute and a tiered training programme. The first level will involve 240 hours of training, and the programme will eventually run across five levels.
On the final day, the government showcased several indigenous technology projects. These included the Digital India RISC-V Grand Challenge, built around RISC-V, an open-source chip architecture that anyone can use to design processors without paying licence fees; an indigenous manufacturing execution system, the software that tracks and controls production on a factory floor, for wafer fabrication at the Semi-Conductor Laboratory (SCL) in Mohali; and new AI and quantum computing platforms developed by the Centre for Development of Advanced Computing (C-DAC).
India has also been trying to build a chip-design ecosystem. Vaishnaw said more than 105 chip-design startups had emerged under the first phase, 20 of which had received venture capital funding. Under Semicon 2.0, the government expects at least 200 chip-design companies to develop in India.
The government says about 70,000 engineers have been trained through its chip-design programmes. Under Semicon 2.0, it plans to train at least 100,000 technicians over the next five years and expand training into systems design and precision manufacturing.
Several skilling partnerships were announced on the final day, involving the Electronics Sector Skills Council of India; SEMI, the global semiconductor industry association that organises Semicon events; the National Institute of Electronics and Information Technology (NIELIT); industry; and educational institutions.
Also read: 'India's first wafer from Dholera semiconductor plant likely in 2028': Ashwini Vaishnaw
Global partnerships will remain important
Semicon India included roundtables with the US, Japan, Singapore, Europe, South Korea and Malaysia, covering investment, equipment, materials, packaging, R&D and talent. Malaysia is particularly relevant because of its established role in the back end of the semiconductor industry, including assembly and testing. India, meanwhile, has a large engineering and chip-design base.
The government also used the event to engage directly with the top leadership of the global semiconductor industry. On September 16, a day before Semicon India began, Modi chaired a roundtable with CEOs and senior executives from companies including Micron, Infineon, Applied Materials, ASML, Merck, Tokyo Electron, AMD, Intel, Tata Electronics, Lam Research, Rapidus, NXP, Foxconn and IBM Research.
The discussions covered the next phase of India's semiconductor growth, including investment, R&D, skilling and emerging technologies such as AI and quantum computing. Modi also asked the companies for suggestions on policy and administrative measures, saying government policies would need to evolve with technology and industry requirements.
What happens after Semicon India 2026?
The EY-IESA report projects that India's semiconductor market could grow from nearly $64 billion in 2026 to $200 billion by 2035. The first phase was largely about getting semiconductor projects off the ground. India now has five commercial facilities and is waiting for its first fab to come online. The next phase is about everything that has to develop around those factories.
