New Delhi, September 6, 2026 (Yes Punjab News)
India is intensifying efforts to build a strong domestic semiconductor industry, with the government seeking to reduce import dependence and position the country as a global hub for chip manufacturing, design and related technologies, according to a report by This Week in Asia.
The country has launched the second phase of its semiconductor mission with a budget of around $13 billion. The expanded programme goes beyond basic manufacturing infrastructure to cover a broader semiconductor supply chain, while placing greater emphasis on developing the skilled workforce required to sustain the industry.
Semiconductors are vital components in automobiles, smartphones, artificial intelligence systems and advanced computing equipment. The Covid-19 pandemic and the resulting global supply disruptions highlighted the risks associated with heavy dependence on a limited number of manufacturing centres in East Asia, strengthening the case for diversified supply chains.
While India is encouraging domestic chip production, industry observers believe the country could secure a larger strategic advantage by moving further upstream into semiconductor design and engineering. India’s large pool of engineers and technology professionals is being seen as a major asset in turning the “Make in India” ambition into “Engineer in India”.
The government has so far approved 12 semiconductor manufacturing projects across six states. Micron, Kaynes Semicon and CG Semi have begun commercial production this year, with their facilities primarily focused on assembly, testing and packaging rather than advanced wafer fabrication.
Meanwhile, a major semiconductor project by Tata Electronics and Taiwan’s Powerchip Semiconductor Manufacturing Corporation in Dholera, Gujarat, is progressing, with the facility targeting its first batch of chips in December.
Tata Electronics has also signed an $11 billion memorandum of understanding with Dutch technology company ASML for collaboration on advanced semiconductor technologies. Signed on May 16, the partnership is intended to support chip requirements across sectors including automobiles and artificial intelligence, the report said.
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