The government has secured nearly $12 billion in investment proposals from companies across semiconductor equipment, materials, gases, chemicals, assembly, testing and packaging sectors under the second phase of the India Semiconductor Mission (ISM). According to Business Standard, these investments are likely to be made by companies over the next two to three years. Union Minister for Electronics and Information Technology Ashwini Vaishnaw announced these commitments at a press conference during the fifth edition of Semicon India 2026, held from September 17-19, 2026. The investments span multiple areas including semiconductor equipment, materials, gases, chemicals, assembly, testing and packaging sectors, demonstrating broad industry confidence in India's semiconductor ambitions.
Applied Materials Inc. has committed to invest $5 billion in India over the next decade, while competitor Lam Research Corp. plans to spend approximately ₹10,000 crore on a local manufacturing facility. According to Business Standard, ASML has set up an office in India and expressed optimism that more of its customers are expected to enter India. ASML Chief Strategic Sourcing and Procurement Officer Allan Wayne noted that Tata Electronics is the first customer in India to have a 300-millimetre semiconductor fab with production capacity of 50,000 wafers per month. Tata Electronics signed 16 agreements with vendors to support its ₹1.18 lakh crore investment to set up a chip manufacturing unit in Dholera, Gujarat and a chip assembly and test unit in Assam. Tata Group's electronic and chip unit signed five accords across the semiconductor supply chain during the event, including a partnership with Nexperia BV for semiconductor wafer manufacturing, assembly and test for its fabrication plant in western Gujarat state.
Under ISM 2.0, the government has introduced a grant-plus-equity structure for smaller startups seeking to design strategic and commercial chips in India, ensuring that intellectual property rights for these products remain within the country. For medium-sized or large domestic companies that wish to enter the strategic and commercial chip design space, the government has proposed a co-investment or royalty-based funding and incentive payment structure. Additionally, a flat incentive of up to 30 per cent of the project cost will be given to successful applicants for semiconductor equipment, speciality chemicals, gases and material makers willing to start manufacturing units in India. The incentives for setting up silicon, display and compound semiconductor fabrication units have been reduced from a flat 50 per cent under ISM 1.0 to 40 per cent for silicon semiconductor fabrication units and 35 per cent for all other semiconductor chip fabrication units under ISM 2.0.
Union Minister for Electronics and Information Technology Ashwini Vaishnaw announced the launch of Semicon 2.0 programme at the inaugural session of SEMICON India 2026 on Thursday, targeting at least 200 startups and companies designing chips in India. According to Business Standard, Vaishnaw noted that chip design would be the first of six pillars of Semicon 2.0, with the government scaling up ambitions after the previous phase saw more than 105 startups attempted chip design, of which about 20 secured venture capital funding worth around ₹800 crore. The second phase of ISM, which was approved by the Union Cabinet in July this year with an outlay of ₹1.27 lakh crore or USD 13.5 billion, proposes to cover six key areas including semiconductor chip design, materials and equipment, advanced packaging, research and development, as well as talent development. As per CNBC TV18, India's semiconductor ambitions are entering their next phase, with close to ₹1 lakh crore of investment already seen.
The second phase of ISM could lead to the creation of 100,000 jobs in the Indian semiconductor ecosystem, with a significant portion of jobs being created by other downstream industries, Vaishnaw announced. On the talent front, Vaishnaw highlighted significant progress under Semicon 1.0, noting that against a target of training 85,000 design engineers over 10 years, the government had already trained 70,000 design engineers in just four years. Under Semicon 2.0, the government will additionally target developing 1 lakh skilled technicians, cleanroom personnel and factory floor talent for direct employment in upcoming semiconductor factories in India. As reported by Business Standard, more than 400 universities across the country now have access to the world's latest Electronic Design Automation (EDA) tools from companies such as Cadence, Siemens and Synopsys, with the Semiconductor Laboratory in Mohali being used for taping out student-designed chips.
Prime Minister Narendra Modi inaugurated Semicon India 2026 at Yashobhoomi in New Delhi on Thursday, as the government steps up its push to build India into a major global semiconductor hub. According to Business Standard, the inauguration coincides with the Prime Minister's birthday, making the event particularly significant. PM Modi addressed the gathering on the occasion, emphasizing the event's role in advancing collaboration, investment, innovation and talent development in India's semiconductor sector. The government is targeting a semiconductor market opportunity of $200 billion by 2030, making the sector a key component of its broader electronics manufacturing and technology ambitions. India's semiconductor requirement is projected to rise from around $100 billion currently to $200 billion. Earlier Thursday, Prime Minister Modi launched a charm offensive for global investors at the chip conference, touting the country's vast pool of engineering graduates and semiconductor-friendly policies.
The three-day event from September 17-19, 2026 has attracted unprecedented industry participation, with over 40,000 visitors and more than 600 participating companies representing 52 countries. According to Business Standard, this represents a significant increase from the 2025 edition that saw more than 350 companies from 18 countries and more than 20,000 people visiting exhibition booths in person. The event brought together global and Indian companies, policymakers, investors, researchers, start-ups, academic institutions and students from across the semiconductor and electronics value chain. Semiconductor ecosystem companies from the US, Japan, the Netherlands, Finland, Singapore, South Korea and Japan held roundtables with Indian companies and government representatives to evaluate partnership opportunities. State governments of Odisha, Madhya Pradesh, Kerala, Gujarat, Telangana, Uttar Pradesh, Tamil Nadu, Andhra Pradesh, Assam, and others were seen aggressively pitching to attract investment from overseas players at the roundtables.
