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BUSINESS & TRADE SEPTEMBER 25, 2026 | The Indian Eye 36

India’s Semiconductor Bet Begins

to Reshape the Economy

India’s semiconductor push is moving from ambition to production, creating the foundations of
a new industrial ecosystem that could generate jobs, deepen manufacturing and strengthen the

country’s position in global supply chains

OUR BUREAU stitutions, reflects this requirement.
India cannot build a semiconductor
New Delhi
industry simply by providing capital
or years, India’s semiconduc- subsidies. It needs people who can
tor ambitions were largely operate, maintain and develop an
Fdiscussed in terms of strategic exceptionally complex manufactur-
necessity. The country wanted to ing ecosystem.
reduce its dependence on imported Research is equally important.
chips, attract global manufactur- Semicon 2.0 proposes greater coop-
ers and establish itself as a serious eration between industry and aca-
player in one of the world’s most demia, with companies identifying
critical industries. At SEMICON applied R&D projects and sharing
India 2026, that ambition appeared funding with the government. If sus-
to be entering a more consequential tained, this could help narrow the
phase: the building of an ecosystem gap between India’s considerable en-
rather than simply a collection of gineering talent and the commercial
semiconductor plants. technologies required by the global
The numbers are significant. semiconductor industry.
Around Rs 1 lakh crore, or approx- Industry executives have already
imately $12 billion, in investment Visitors pose for a selfie on the first day of SEMICON India 2026 at Yashobhoomi, in New Delhi identified areas requiring improve-
commitments have been received for ment. Fujifilm India, for instance,
the next phase of the semiconduc- on Thursday (ANI Photo/Naveen Sharma) has pointed to customs clearance
tor programme, with more than one and smaller regulatory registrations
lakh jobs expected to be created. But vendor park is planned in Dholera, energy applications. Its portfolio as issues where government support
the larger economic significance lies Gujarat, around its semiconductor also includes communication mod- remains necessary.
beyond these headline figures. fabrication facility. Fujifilm and JSR ules and products for automobiles. This is an important reminder
The government’s Semicon 2.0 are working on critical materials and The arrival of global equipment that India’s semiconductor strategy
programme is designed to develop six advanced chemicals, while other companies adds another dimension. will ultimately be judged not by the
areas — chip design, machines and companies are developing packaging Lam Research plans to invest ap- number of announcements but by
materials, fabrication, advanced pack- and assembly capabilities. proximately Rs 10,000 crore in India execution.
aging, applied research and develop- Such localisation could gradu- over the next several years in a sili- The economic opportunity is
ment, and talent. This suggests a shift ally change the character of Indian con component manufacturing facili- nevertheless substantial. A success-
from viewing semiconductors as a sin- manufacturing. ty and advanced R&D. The company ful semiconductor ecosystem could
gle manufacturing activity to treating For decades, India’s strength in has also been working with the India strengthen electronics manufactur-
them as an industrial ecosystem. technology has been particularly vis- Semiconductor Mission and IISc on ing, attract global companies, en-
That distinction matters. ible in software and services. Semi- training 60,000 engineers in semi- courage domestic technology firms,
A semiconductor factory can- conductors offer an opportunity to conductor manufacturing. create high-skilled employment and
not operate in isolation. It requires connect that technological expertise This is where the semiconduc- make India a more important node
specialised chemicals and gases, so- with advanced manufacturing. The tor push could have an important in increasingly diversified global sup-
phisticated equipment, precision economic prize is not merely pro- employment effect. The sector itself ply chains.
engineering, packaging facilities, de- ducing chips domestically but cre- is highly specialised and does not Semicon 1.0 laid the foundation.
sign capabilities and a highly trained ating Indian capabilities across the employ people on the scale of tra- Semicon 2.0 is an attempt to build
workforce. Developing these sup- chain — from design and equipment ditional labour-intensive industries. the ecosystem around it. If India can
porting industries can create a much to materials, packaging and finished Its broader impact, however, can turn investment commitments into
wider economic multiplier than a products. extend through suppliers, precision production, production into inno-
fabrication plant alone. The emergence of commercial manufacturing, logistics, construc- vation, and innovation into globally
The early signs are already vis- production is therefore particular- tion, research institutions and elec- competitive companies, semicon-
ible. Tata Electronics has signed ly important. L&T Semiconductor tronics production. ductors could become an import-
agreements covering wafer manu- Technologies says around 40 of its The government’s plan to train ant bridge between its traditional
facturing, assembly and testing, ad- products have entered production, one lakh technicians over five years, strengths in engineering and its am-
vanced packaging, materials and including power modules for air-con- alongside semiconductor education bitions as a manufacturing and tech-
supply-chain localisation. A 363-acre ditioners, two-wheelers, robotics and in around 400 universities and in- nology power.

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