India will ramp up its semiconductor manufacturing push in the coming years — with plans underway for up to eight new plants. The announcement came from Prime Minister Narendra Modi on Saturday as he addressed the nation from the ramparts of the Red Fort amid Independence Day celebrations. He noted that India has already begun production at three semiconductor plants
“In today’s digital world and technological landscape, we understand the immense importance of chips. Whether it is electronic goods, medical equipment, or transportation systems, chips are indispensable; without them, the world would come to a standstill,” the PM said.
Earlier this week, Union Minister Ashwini Vaishnaw noted that there were now 12 units with a combined investment of $20 billion. He also noted that there had been a significant shift from policy and project approvals towards actual semiconductor production in recent years.
Five to eight additional semiconductor plants planned
The PM also highlighted the growing technological self-reliance of India during his address — noting that chips had become essential to electronics, healthcare, transport and virtually every modern technology. PM Modi noted that for years, the country discussed semiconductors, but lacked large-scale semiconductor manufacturing facilities.
“India has moved towards self-reliance in this sector; three major semiconductor plants have already been established, and I have been informed that production from these facilities has already begun for export. In the coming 7-8 years, five to eight additional semiconductor plants are set to commence operations very soon,” PM Modi added.
Semiconductor chips have become a crucial component for most modern devices — used in everything from personal gadgets to massive global infrastructure, vehicles, and advanced artificial intelligence systems. PM Modi also linked the semiconductor push with India’s broader strategy of reducing dependence on overseas supplies and strengthening domestic capabilities. He said self-reliance had become increasingly important as countries sought to protect their own interests and resources amid global disruptions.
Growing semiconductor industry in India
India has taken several steps to come up as a major semiconductor manufacturing and technology hub — reducing vulnerabilities associated with dependence on overseas supply chains. Semicon 2.0 was also announced in July this year, with Vaishnaw noting that it would drive the “next phase” of developments. The government said the recently approved Semicon 2.0 is designed to cover the complete semiconductor ecosystem and is expected to create further investment opportunities for states.
“In 2022: We started Semicon India. Learnt from past attempts. Clear policy and execution. 2026: 12 semiconductor units with $20 billion investment. 3 units are already making chips. Semicon 2.0 approved. and we are just getting started,” he said.
Under the Semicon India Programme, 12 semiconductor manufacturing projects have been approved across six states, involving total investment commitments of around Rs 1.64 lakh crore. Commercial production has already commenced at three plants. The government is also supporting semiconductor design through the Design Linked Incentive scheme, with 24 projects approved for financial assistance and 105 startups and MSMEs receiving Electronic Design Automation tool support.