SEMICON India 2026: India’s chip story has moved from files to factories, says PM Modi

India’s semiconductor push is moving from project announcements and construction to commercial production, Prime Minister Narendra Modi said on Thursday, as he inaugurated SEMICON India 2026 and called for more private-sector investment in research and development.

Modi said the annual semiconductor event had evolved with the industry. “When the first edition was held, we discussed policy. In the subsequent editions, the discussion moved forward. We began discussing projects, including signing of files and laying foundation stones. Last year, we started discussing pilot lines and test chips, and talked about the first samples coming out of India's units.”

“This year, we are talking about commercial production. Our chips are now beginning to reach customers in the country and around the world from Indian plants. Commercial production is also beginning at two more plants. I congratulate them as well,” he said.


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The comments come as India’s semiconductor programme moves beyond getting projects approved and factories built towards establishing regular commercial output. The government had approved 12 projects under the first phase of the India Semiconductor Mission, covering fabrication, packaging and other parts of the chip manufacturing chain.

Three facilities, including those of Micron, Kaynes Semicon and CG Semi, have already entered commercial production. ET reported in July that CG Semi had started commercial production at its Sanand facility, following Micron and Kaynes.

Focus shifts to ecosystem

Modi said the government was also introducing further reforms to widen participation in the semiconductor sector.

“Moving forward on the 'Reform Express', we have introduced further reforms in this sector. Now, international companies can collaborate with our startups, Indian design firms, and OCI-owned entities,” he said.

“Whether it concerns policy, funding, or the regulatory framework, the Government of India is taking every necessary step to ensure the success of your projects,” Modi added.

The government has already expanded the semiconductor programme through its second phase, with the outlay raised to about $13.5 billion from roughly $8 billion under the first phase. Modi reiterated the figure at SEMICON India and did not present it as a new allocation.

Also Read: SEMICON India 2026- Chip away into the whole ecosystem, policy should look beyond fab units

The larger challenge now is building the ecosystem around the factories, Modi said, including suppliers of semiconductor equipment and materials, testing and packaging capabilities, chip design and specialised talent. The official theme of SEMICON India 2026 is “Silicon to Systems: Building the Ecosystem”.

India looks to global chip supply chains

Modi also pointed to the changing global semiconductor supply chain as an opportunity for India.

“The world needs new and trusted locations for chip manufacturing and India is preparing itself for this,” he said.

“India is taking all steps to become a preferred destination for semiconductor manufacturing,” Modi added.

The government has been positioning the country as an alternative manufacturing base as chipmakers seek to diversify supply chains. The 12 projects approved under the first phase are spread across six states and cover different stages of semiconductor manufacturing.

Modi also called for greater industry participation in research and development, and urged Indian researchers working overseas to contribute to advanced technology development in the country.

“Young talents who are doing research in India should come forward. The youth who are researching abroad... they should also join the development of advanced technologies in India,” he said.

“I urge industry leaders to lead R&D in the country. This benefits the industry and will also empower the youth power of India,” Modi added.

The shift towards commercial output comes four years after the first SEMICON India, when the government was primarily focused on putting the policy framework and incentives for semiconductor manufacturing in place.